This paper analyses the provision of education in Argentina in systemic terms. Using the concept of quasi-monopoly and the notions of exit, voice and loyalty, we study the logic of organization and distribution of students within the educational system. We support the idea that the provision of private and public education makes a coherent whole, where the State plays an active role. We then evaluate the implications of this configuration on the Argentine system in terms of: (a) freedom of choice; (b) productive efficiency; (c) equity; and (d) social cohesion following Levin's framework. We describe how the Argentine quasi-State monopoly system works as an important device of scarcity administration, increasing socio-economic segregation through its tendency to push the middle and upper-middle classes into private schooling while granting public schooling for the lowest income sectors. Finally, this article lays the foundation for the use of the quasi-State monopoly notion for the study of other educational systems.