The Long-Term Consequences of Free School Choice

I study the long-term consequences of an effective free school choice program that targeted disadvantaged students in Israel two decades ago. I show that the program led to significant gains in post-secondary education through increased enrolment in academic and teachers’ colleges without any increase in enrolment in research universities. Free school choice also increased earnings at the adulthood of treated students. Male students had much larger improvements in college schooling and labor market outcomes. Female students, however, experienced higher increases in marriage and fertility rates, which most likely interfered with their schooling and labor market outcomes.