Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination
AbstractI develop a model of competition between charter schools and traditional public schools and estimate the model using administrative data from North Carolina. The model allows peers to affect the production of student achievement. I use the model to quantify how existing charter schools have affected test scores for both charter and public school students and to simulate how lifting binding caps on charters would affect charter school entry and student test scores. The structural model renders a comprehensive and internally consistent picture of treatment effects, and highlights heterogeneity that studies based on subsets of schools or students may not be able to recover. In particular, I find that i) contextual peer effects are large at public schools but do not significantly affect test scores for students at charters, ii) the mean effect of charter schools on attendant students (direct effect) is 11% of a standard deviation, iii) there is substantial heterogeneity in the mean direct effect by market, including many markets where the mean direct effect is negative, iv) the mean spillover effect on public school students is positive, but marginal, v) lifting caps on charter schools would more than double entry and cause much smaller increases in mean test scores for attendant students.
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Bibliographic InfoPaper provided by University of Western Ontario, CIBC Centre for Human Capital and Productivity in its series University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers with number 20123.
Date of creation: 2012
Date of revision:
Contact details of provider:
Postal: CIBC Centre for Human Capital and Productivity, Social Science Centre, University of Western Ontario, London, Ontario, Canada N6A 5C2
Phone: 519-661-2111 Ext.85244
Web page: http://economics.uwo.ca/research/research_papers/cibc_workingpapers.html
School Choice; Charter Schools; Education; Structural Estimation; General Equilibrium; Treatment Effects;
Other versions of this item:
- Nirav Mehta, 2012. "Competition in Public School Districts: Charter School Entry, Student Sorting, and School Input Determination," 2012 Meeting Papers 42, Society for Economic Dynamics.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- I20 - Health, Education, and Welfare - - Education - - - General
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-01 (All new papers)
- NEP-EDU-2012-07-01 (Education)
- NEP-LAB-2012-07-01 (Labour Economics)
- NEP-URE-2012-07-01 (Urban & Real Estate Economics)
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