NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Educational Vouchers and Cream Skimming

Dennis Epple, Richard Romano

NBER Working Paper No. 9354
Issued in November 2002
NBER Program(s):CH, PE, ED

Epple and Romano (1998) show equilibrium provision of education by public and private schools has the latter skim off the wealthiest and most-able students, and flat-rate vouchers lead to further cream skimming. Here we study voucher design that would inject private-school competition and increase technical efficiencies without cream skimming. Conditioning vouchers on student ability without restriction on participating schools' policies fails to effect significantly cream skimming. However, by adding conditions like tuition constraints such as vouchers can reap the benefits of school competition without increased stratification. This can be accomplished while allowing voluntary participation in the voucher system and without tax increases.

download in pdf format
   (2395 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9354

Published: Dennis Epple & Richard Romano, 2008. "Educational Vouchers And Cream Skimming," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 49(4), pages 1395-1435, November. citation courtesy of

Users who downloaded this paper also downloaded* these:
Altonji, Huang, and Taber w16579 Estimating the Cream Skimming Effect of School Choice
Epple, Figlio, and Romano w7956 Competition Between Private and Public Schools: Testing Stratification and Pricing Predictions
Hastings, Kane, and Staiger w12145 Preferences and Heterogeneous Treatment Effects in a Public School Choice Lottery
Rouse w5964 Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program
Hsieh and Urquiola w10008 When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us