7.15. School choice and opportunity cost.

Autores: R. Chumacero, J. Gallegos, R. Paredes

ABSTRACT

The voucher system for education in Chile firmly relies on the parent´s ability to choose their child´s school. One factor which may impede choice is the presence of an opportunity cost, such as the stress that children experience when changing schools, the loss of social networks, etc. In this paper, we develop a methodology which quantifies the opportunity cost and analyzes its relevance for education in Chile. By using econometric methods and evaluating structural changes, we found that opportunity costs exist and they are relevant.

Key words: school choice, opportunity cost, switching regression. JEL Classification: I21, L12.