Politics & Governance / Public Policy / Education Policy

How Chile’s School Voucher Reform Shrank the Achievement Gap by One-Third

In 2008, Chile overhauled its 27-year-old universal voucher system with the Preferential School Subsidy Law (SEP). This video breaks down the surprising results: math scores soared, and the gap between rich and poor students narrowed by a third. But here’s the twist—this wasn’t due to students switching schools. Instead, increased funding tied to strict accountability forced the worst-performing schools to improve fastest. We’ll explore the study by the National Bureau of Economic Research, how the reform turned Milton Friedman’s model on its head, and why it matters for education policy worldwide. If you think school choice alone fixes inequality, this will change your mind.