Independent Schools and Long‐run Educational Outcomes: Evidence from Sweden's Large‐scale Voucher Reform

Abstract

We estimate effects on educational outcomes from the expansion of the independent school sector in Sweden, which followed as a consequence of the radical 1992 voucher reform. Using variation in this expansion across municipalities, we find that an increase in the share of independent school students improves average short‐ and long‐run outcomes, explained primarily by external effects (e.g. school competition). For most outcomes, we observe significant effects first a decade after the reform. By using regional level TIMSS data, we can reconcile our results with the negative national trend for Swedish students in international achievement tests.