Long-term consequences of secondary school vouchers: Evidence from administrative records in Colombia - ARCHIVED

Although the use of school vouchers is growing in the developing world, the impact of vouchers is an open question. Any sort of long-term assessment of this activity is rare. This paper estimates the long-term effect of Colombia's PACES program, which provided over 125,000 poor children with vouchers that covered half the cost of private secondary school.

The PACES program presents an unusual opportunity to assess the effect of demand-side education financing in a Latin American country where private schools educate a substantial proportion of pupils. The program is of special interest because many vouchers were assigned by lottery, so program effects can be reliably assessed.

We use administrative records to assess the long-term impact of PACES vouchers on high school graduation status and test scores. The principal advantage of administrative records is that there is no loss-to-follow-up and the data are much cheaper than a costly and potentially dangerous survey effort. On the other hand, individual ID numbers may be inaccurate, complicating record linkage, and selection bias contaminates the sample of test-takers. We discuss solutions to these problems. The results suggest that the program increased secondary school completion rates, and that college-entrance test scores were higher for lottery winners than losers.