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School Competition and Efficiency with Publicly Funded Catholic Schools

  • David Card
  • Martin D. Dooley
  • A. Abigail Payne

We study competition between two publicly funded school systems in Ontario, Canada: one that is open to all students, and one that is restricted to children of Catholic backgrounds. A simple model of competition between the competing systems predicts greater effort by school managers in areas with more Catholic families who are willing to switch systems. Consistent with this insight, we find significant effects of competitive pressure on test score gains between third and sixth grade. Our estimates imply that extending competition to all students would raise average test scores in sixth grade by 6 percent to 8 percent of a standard deviation. (JEL I21, I22, H75, Z12)

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Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 2 (2010)
Issue (Month): 4 (October)
Pages: 150-76

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Handle: RePEc:aea:aejapp:v:2:y:2010:i:4:p:150-76
Note: DOI: 10.1257/app.2.4.150
Contact details of provider: Web page: https://www.aeaweb.org/aej-applied
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