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Choice, Competition and Pupil Achievement

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Author Info
Stephen Gibbons () (London School of Economics)
Stephen Machin () (University College London, London School of Economics and IZA Bonn)
Olmo Silva () (London School of Economics, European University Institute and IZA Bonn)

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Abstract

Choice and competition in education have found growing support from both policy makers and academics in the recent past. Yet, evidence on the actual benefits of market-oriented reforms is at best mixed. Moreover, while the economic rationale for choice and competition is clear, in existing work there is rarely an attempt to distinguish between the two concepts. In this paper, we study whether pupils in Primary schools in England with a wider range of school choices achieve better academic outcomes than those whose choice is more limited; and whether Primary schools facing more competition perform better than those in a more monopolistic situation. In simple least squares regression models, we find little evidence of a link between choice and achievement, but uncover a small positive association between competition and school performance. Yet, this could be related to endogenous school location or pupil sorting. In fact, an instrumental variable strategy based on discontinuities generated by admissions district boundaries suggests that the performance gains from greater school competition are limited. Only when we restrict our attention to Faith autonomous schools, which have more freedom in managing their admission practices and governance, do we find evidence of a positive causal link between competition and pupil achievement.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2214.

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Length: 54 pages
Date of creation: Jul 2006
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Handle: RePEc:iza:izadps:dp2214

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Related research
Keywords: choice; competition; primary schools; pupil achievement;

Other versions of this item:

Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
R5 - Urban, Rural, and Regional Economics - - Regional Government Analysis

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Gibbons, Steve & Machin, Stephen, 2003. "Valuing English primary schools," Journal of Urban Economics, Elsevier, vol. 53(2), pages 197-219, March. [Downloadable!] (restricted)
  2. Caroline M. Hoxby, 2002. "School Choice and School Productivity (or Could School Choice be a Tide that Lifts All Boats?)," NBER Working Papers 8873, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Rosalind Levačić, 2004. "Competition and the performance of english secondary schools: further evidence," Education Economics, Taylor and Francis Journals, vol. 12(2), pages 177-193, August. [Downloadable!] (restricted)
  4. Lorraine Dearden & Leslie McGranahan & Barbara Sianesi, 2004. "The Role of Credit Constraints in Educational Choices: Evidence from NCDS and BCS70," CEE Discussion Papers 0048, Centre for the Economics of Education, LSE. [Downloadable!]
  5. Neal, Derek, 1997. "The Effects of Catholic Secondary Schooling on Educational Achievement," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 98-123, January. [Downloadable!] (restricted)
  6. Cecilia Elena Rouse, 1998. "Private School Vouchers And Student Achievement: An Evaluation Of The Milwaukee Parental Choice Program," The Quarterly Journal of Economics, MIT Press, vol. 113(2), pages 553-602, May. [Downloadable!] (restricted)
  7. McMillan, Robert, 2004. "Competition, incentives, and public school productivity," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1871-1892, August. [Downloadable!] (restricted)
  8. George M. Holmes & Jeff DeSimone & Nicholas G. Rupp, 2003. "Does School Choice Increase School Quality?," NBER Working Papers 9683, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  9. Nechyba, Thomas, 2003. "School finance, spatial income segregation, and the nature of communities," Journal of Urban Economics, Elsevier, vol. 54(1), pages 61-88, July. [Downloadable!] (restricted)
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  10. Douglas Staiger & James H. Stock, 1997. "Instrumental Variables Regression with Weak Instruments," Econometrica, Econometric Society, vol. 65(3), pages 557-586, May.
    Other versions:
  11. Glennerster, Howard, 1991. "Quasi-markets for Education?," Economic Journal, Royal Economic Society, vol. 101(408), pages 1268-76, September. [Downloadable!] (restricted)
  12. Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Stephen Gibbons & Stephen Machin, 2006. "Paying for Primary Schools: Admission Constraints, School Popularity or Congestion?," Economic Journal, Royal Economic Society, vol. 116(510), pages C77-C92, 03. [Downloadable!] (restricted)
  14. Thomas J. Nechyba, 2000. "Mobility, Targeting, and Private-School Vouchers," American Economic Review, American Economic Association, vol. 90(1), pages 130-146, March. [Downloadable!] (restricted)
  15. Eric A. Hanushek, 2003. "The Failure of Input-Based Schooling Policies," Economic Journal, Royal Economic Society, vol. 113(485), pages F64-F98, February. [Downloadable!] (restricted)
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  16. Simon Burgess & Brendon McConnell & Carol Propper & Deborah Wilson, 2004. "Sorting and Choice in English Secondary Schools," The Centre for Market and Public Organisation 04/111, Department of Economics, University of Bristol, UK. [Downloadable!]
  17. S Bradley & R Crouchly & J Millington & J Taylor, . "Testing for Quasi-Market Forces in Secondary Education," Working Papers cr03/98, Department of Economics, University of Lancaster.
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  18. Jesse M. Rothstein, 2006. "Good Principals or Good Peers? Parental Valuation of School Characteristics, Tiebout Equilibrium, and the Incentive Effects of Competition among Jurisdictions," American Economic Review, American Economic Association, vol. 96(4), pages 1333-1350, September. [Downloadable!]
  19. Cullen, Julie Berry & Jacob, Brian A. & Levitt, Steven D., 2005. "The impact of school choice on student outcomes: an analysis of the Chicago Public Schools," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 729-760, June. [Downloadable!] (restricted)
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  20. Julie Berry Cullen & Brian A. Jacob & Steven Levitt, 2003. "The Effect of School Choice on Student Outcomes: Evidence from Randomized Lotteries," NBER Working Papers 10113, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Caroline M. Hoxby, 2000. "Does Competition among Public Schools Benefit Students and Taxpayers?," American Economic Review, American Economic Association, vol. 90(5), pages 1209-1238, December. [Downloadable!] (restricted)
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  22. Petra E. Todd & Kenneth I. Wolpin, 2003. "On The Specification and Estimation of The Production Function for Cognitive Achievement," Economic Journal, Royal Economic Society, vol. 113(485), pages F3-F33, February. [Downloadable!] (restricted)
  23. Geraint Johnes & Steve Bradley & Jim Millington, 1999. "School choice, competition and the efficiency of secondary schools in England," Working Papers 000021, Lancaster University Management School, Economics Department. [Downloadable!]
  24. Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
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  25. Sandra E. Black, 1999. "Do Better Schools Matter? Parental Valuation Of Elementary Education," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 577-599, May. [Downloadable!] (restricted)
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  26. Dennis Epple & Elizabeth Newlon & Richard Romano, 2000. "Ability Tracking, School Competition, and the Distribution of Educational Benefits," NBER Working Papers 7854, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  27. Paul Cheshire & Stephen Sheppard, 2003. "Capitalising the Value of Free Schools: The Impact of Supply Constraints and Uncertainty," ERSA conference papers ersa03p8, European Regional Science Association. [Downloadable!]
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Böhlmark, Anders & Lindahl, Mikael, 2008. "Does School Privatization Improve Educational Achievement? Evidence from Sweden's Voucher Reform," IZA Discussion Papers 3691, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Kramarz, Francis & Machin, Stephen & Ouazad, Amine, 2008. "What Makes a Test Score? The Respective Contributions of Pupils, Schools, and Peers in Achievement in English Primary Education," IZA Discussion Papers 3866, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. Anders Böhlmark & Mikael Lindahl, 2007. "The Impact of School Choice on Pupil Achievement, Segregation and Costs: Swedish Evidence," IZA Discussion Papers 2786, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Steve Bradley & Jim Taylor, 2008. "Diversity, choice and the quasi-market: An empirical analysis of secondary education policy in England," Working Papers 005802, Lancaster University Management School, Economics Department. [Downloadable!]
  5. Stephen Gibbons & Olmo Silva, 2007. "Urban Density and Pupil Attainment," IZA Discussion Papers 2728, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  6. Joëlle Noailly & Suncica Vujic & Ali Aouragh, 2009. "The effects of competition on the quality of primary schools in the Netherlands," CPB Discussion Papers 120, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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