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School vouchers introduced recently in some Italian regions have lowered the cost of private schools. On the one hand, we provide evidence that Italian private schools may be selected for different reasons other than quality considerations. On the other hand, by exploiting individual data on voucher applicants, we present evidence that the percentage of voucher applicants is higher, the higher the average quality of private schools. We explain this with the fact that better quality schools provide better services to students, including information and consulting on vouchers. We show that enrolment in private schools responds sluggishly to changes in tuition induced by vouchers. Under stringent assumptions, we estimate the slopes of supply and demand of private education in the largest Italian region, Lombardy, during the first two years since implementation of a voucher scheme, and provide a quantitative …