One of the key features of the Dutch education system
is freedom of education—freedom to establish schools
and organize teaching. Almost 70 percent of schools
in the Netherlands are administered by private school
boards, and all schools are government funded equally.
This allows school choice. Using an instrument to identify school choice, it is shown that the Dutch system
promotes academic performance. The instrumental
variables results show that private school attendance is
associated with higher test scores. Private school size
effects in math, reading, and science achievement are
0.17, 0.28, and 0.18.