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Central Mandates and Local Incentives: The Colombia Education Voucher Program
Authors:King  Elizabeth M; Orazem  Peter F; Wohlgemuth  Darin
Abstract:In decentralized education systems programs that promote centralmandates may have to be devolved to local governments, communities,and providers. When participation by local governments and providersis voluntary rather than compulsory, the determinants of programplacement are important in predicting potential benefits toindividuals. This article analyzes incentives for municipalitiesand private schools to participate in Colombia's voucher program.It finds that the demand for secondary education relative tothe capacity of public schools and the availability of spacesin private schools in the municipality were key predictors ofmunicipal participation, whereas the number of underserved studentshad a nonlinear effect on participation. Schools whose educationalquality was moderate and charged moderate tuition fees werethe most likely to participate; the program was less attractiveto schools whose quality and fees were high and to schools whosequality and fees were low.
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