Education & Academia / Education Systems / K-12 Education

School Choice Destroyed Education: The Shocking Truth from Chile's Voucher Experiment (CHL)

Chang-Tai Hsieh, Miguel Urquiola

In 1981, Chile launched the world's most radical free-market education experiment: a nationwide school voucher program. Proponents promised it would boost quality through competition. But 20 years later, the results were devastating. This video breaks down the landmark 2006 study by Chang-Tai Hsieh and Miguel Urquiola, published in the Journal of Public Economics. They analyzed data from 150 municipalities and found that increased school choice did not improve test scores or graduation rates. Instead, it triggered a massive 'cream-skimming' effect—middle-class students fled to private schools, leaving public schools with the poorest kids. The result? Greater social segregation and zero gains in overall learning. Watch to discover why market competition in education can be a zero-sum game, and what Chile's failed experiment warns us about school voucher policies worldwide.