| Summary: | This study analyses the impact of the termination of public-funded private school contracts, known as Contratos de Associação (CA), on student performance and demand for different types of schools in Portugal. We use a difference-in-differences approach to measure this impact on high school national exam scores. Our findings suggest this policy had no effects on student achievement in the municipalities that had CA schools in that period. However, we find an increase in demand of both strictly private and public schools in response to the decrease in supply of CA classes caused by this policy, in the municipalities considered.
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