Why Do Education Vouchers Fail at the Ballot Box?
FRB of St. Louis Working Paper No. 2011-032B
27 Pages Posted: 12 Apr 2012 Last revised: 7 Nov 2012
Date Written: August 1, 2012
Abstract
We compare a uniform voucher regime against the status quo mix of public and private education, focusing on the distribution of welfare gains and losses across house-holds by income. We argue that the topping-up option available under uniform vouchers is not sufficiently valuable for the poorer households, so the voucher regime is defeated at the polls. Our result depends critically on the opting-out feature in the current system.
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