Chile implemented a targeted voucher programme in 2008 that increased funding for disadvantaged students at public and participating private schools by approximately 50%. This reform would be expected to raise average achievement in participating schools and to reduce the achievement gap related to socioeconomic status, and disadvantaged students did make fourth-grade test-score gains exceeding 0.2 standard deviations that other studies have attributed to the programme. However, we find only small increases in resources and school-switching and little evidence of competition-driven improvement, but a closing of the parental education and income gaps, raising doubts that the programme accounts for much of this convergence.
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