This paper reports evidence that parental value of charter schools is primarily determined by the schools’ academically effectiveness. Data on the New Jersey charter schools indicate that not all charter schools are equally effective, measured by student test scores, or equally valued, measured by the number of students on their waiting list. The charter school value model estimates the effect of tests score, student demographics and school characteristics for both the charter school and the home district traditional public schools. The estimates indicate that the charter school test scores have the largest and most robust effect on the size of the waiting list. Neither the charter school students’ race or income nor traditional public school students’ test scores affect charter school parental value. Thus this research supports a basic tenet for competitive, market based public school improvement--parents choose academically effective schools.
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