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Is there a Difference Between For-Profit Versus Not-For-Profit Charter Schools?

Author

Listed:
  • Cynthia D Hill

    (Idaho State University)

  • David Welsch

    (Department of Economics, University of Wisconsin - Whitewater)

Abstract

The role of for-profit educational organizations in the predominantly public and not-for-profit K-12 U.S. schooling system is being fiercely debated across our nation. Little empirical research is available to help policy makers develop informed decisions regarding the educational value that for-profit schools provide to our students. This paper fills in part, for the first time in detail, this void. This paper uses a four year panel of charter schools from the state of Michigan and a random effects model that controls for student and district characteristics. Results indicate that for-profit charter schools have lower math test scores than not-for-profit charter schools. Interestingly, this result holds even when expenditure per pupil is controlled for. The analysis developed in this paper takes the debate one step further as well, and examines the role that the size of for-profit firms plays in the associated outcomes.

Suggested Citation

  • Cynthia D Hill & David Welsch, 2008. "Is there a Difference Between For-Profit Versus Not-For-Profit Charter Schools?," Working Papers 08-02, UW-Whitewater, Department of Economics.
    • Handle: RePEc:uww:wpaper:08-02
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    File URL: http://www.uww.edu/documents/colleges/cobe/economics/wpapers/08_02_Hill_Welsch.pdf
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    References listed on IDEAS

    as
    1. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July.
    2. Myron Lieberman, 2005. "Education Research Flounders in the Absence of Competition from For-Profit Schools," Cato Journal, Cato Journal, Cato Institute, vol. 25(2), pages 245-266, Spring/Su.
    3. Sloan, Frank A. & Picone, Gabriel A. & TaylorJr., Donald H. & Chou, Shin-Yi, 2001. "Hospital ownership and cost and quality of care: is there a dime's worth of difference?," Journal of Health Economics, Elsevier, vol. 20(1), pages 1-21, January.
    4. Baltagi, Badi H. & Chang, Young-Jae, 1994. "Incomplete panels : A comparative study of alternative estimators for the unbalanced one-way error component regression model," Journal of Econometrics, Elsevier, vol. 62(2), pages 67-89, June.
    5. Tim R. Sass, 2006. "Charter Schools and Student Achievement in Florida," Education Finance and Policy, MIT Press, vol. 1(1), pages 91-122, January.
    6. Sloan, Frank A., 2000. "Not-for-profit ownership and hospital behavior," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 21, pages 1141-1174, Elsevier.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Profit; For-Profit; Not-For-Profit; Nonprofit; Charter Schools; Random Effects; Education;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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