Question

Epple and Romano (2008) describe theoretical evidence that school vouchers will lead to "cream-skimming," where private schools will pick off the better students and leave public schools with lower-ability average students. They propose targeted vouchers, in which

different-sized vouchers go to different groups of students, to combat this potential concern. How would you design a targeted voucher system that would lead to a reduced level of cream-skimming?

Answer 1

To design a targeted voucher system that reduces cream-skimming, identify at-risk groups, assign different voucher amounts based on needs, establish eligibility criteria, and monitor and evaluate the system's impact.

Step-by-step explanation:

In order to design a targeted voucher system that would lead to a reduced level of cream-skimming, several steps can be taken:

1. Identify the groups of students at risk of cream-skimming: This could include students from low-income backgrounds, students with disabilities, or students from underrepresented communities.
2. Determine different-sized vouchers: Based on the needs of each group, assign different voucher amounts. For example, students from low-income backgrounds may receive larger vouchers to ensure access to quality private schools.
3. Implement eligibility criteria: Establish specific eligibility criteria that target students who are more likely to be cream-skimmed. This can include academic performance, socioeconomic status, or other factors.
4. Monitor and evaluate: Continuously assess the impact of the targeted voucher system on reducing cream-skimming. Analyze data on enrollment patterns and educational outcomes to make necessary adjustments.