Goodman - Education Vouchers

In the arena of education reform, the idea of using a ‘voucher-system’ has gained increasing support and controversy. While there are many different proposed methods of implementation, the general idea is to drive improvement in the school system through private market competition. Instead of receiving “free” public schooling, the parents of children would receive a voucher worth some dollar amount that they could redeem to fully, or partially, pay for tuition at the school of their choice. Under our current system, children in the public school system are assigned a school based on geography. This makes sense in terms of transportation, but many argue that it increases inequality of opportunity, as property prices are often restrictively elevated in outperforming school districts, leaving low-income students at the worst schools. Studies have found that areas with greater choice in school selection have higher test scores and lower per-pupil costs (Hoxby, 1998). Another study shows that areas where public schools are subject to competition, either from voucher systems or magnet schools, also outperform in terms of test-scores and per-pupil costs.

The idea has its share of opponents. Many argue that the program would simply result in a shift of funds from public schools to private schools, which would ultimately have a negative effect on low-income students. The best private schools would still have a restrictively high tuition, in excess of the voucher face value, and the worst schools would simply lose the extra tax dollars currently paid by students attending private schools. Another issue is the religious nature of many private schools, that many feel should restrict them from any form of tax funding. Others argue that geographical boundaries would still exist, as low-income parents often do not have the time or means to transport their students to better schools that are farther away, even if they have the option to attend. One issue I rarely see mentioned is the effect of such a system on property values. Personally, I could see many opposing the idea due to an imminent collapse in the value of their house, which often has school quality baked in. There is a lot of literature on the voucher school system and it has been implemented with varying degrees of success in other countries. I’d be interested to hear anyone else’s thoughts on the topic, arguments, or corrections to my summary.