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

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Author Info
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.

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File URL: http://academics.uww.edu/business/economics/wpapers/08_02_Hill_Welsch.pdf
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Publisher Info
Paper provided by UW-Whitewater, Department of Economics in its series Working Papers with number 08-02.

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Length: 27 pages
Date of creation: May 2008
Date of revision:
Publication status: forthcoming in Education Economics
Handle: RePEc:uww:wpaper:08-02

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Postal: Whitewater, WI 53190-1750
Phone: (414) 472-1361
Web page: http://academics.uww.edu/business/economics/
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Related research
Keywords: Profit; For-Profit; Not-For-Profit; Nonprofit; Charter Schools; Random Effects; Education;

Find related papers by 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 - - - Health, Education, and Welfare
I21 - Health, Education, and Welfare - - Education - - - Analysis of Education

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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. 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. [Downloadable!] (restricted)
  2. Glaeser, Edward L. & Shleifer, Andrei, 2001. "Not-for-profit entrepreneurs," Journal of Public Economics, Elsevier, vol. 81(1), pages 99-115, July. [Downloadable!] (restricted)
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  3. Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
    Other versions:
  5. 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. [Downloadable!] (restricted)
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