Designing Targeted Educational Voucher Schemes for the Poor in Developing Countries

Abstract

A targeted educational voucher scheme [TEVS] is often proposed for the poor in developing countries. Essentially, a TEVS involves a voucher or certificate by which poor households are given the ability to pay tuition and fees for their children's schooling at participating non-public schools. However, little is known about TEVS design in developing countries. By exploring the details of TEVS design, this article provides the foundation for constructing a TEVS and conducting subsequent scientific evaluations to support, modify, or oppose the TEVS. Specifically, this article uses three policy instruments to design a TEVS: regulation, support services, and finance. Regulation refers to the rules that must be adhered to by participating households, children, and schools. Support services refer to services facilitating the participation of children, households, schools, and financial and political supporters. Finance refers to the value of each voucher, total TEVS costs, and sources of finance.

Keywords: development, educational policy, international education, privatization, voucher

JEL Classification: H40, H52, I2, O1, O2