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Competitive Effects of Means-Tested School Vouchers

Author

Listed:
  • David Figlio
  • Cassandra M. D. Hart

Abstract

We use the introduction of a means-tested voucher program in Florida to examine whether increased competitive pressure on public schools affects students' test scores. We find greater score improvements in the wake of the program introduction for students attending schools that faced more competitive private school markets prior to the policy announcement, especially those that faced the greatest financial incentives to retain students. These effects suggest modest benefits for public school students from increased competition. The effects are consistent across several geocoded measures of competition and isolate competitive effects from changes in student composition or resource levels in public schools.

Suggested Citation

  • David Figlio & Cassandra M. D. Hart, 2014. "Competitive Effects of Means-Tested School Vouchers," American Economic Journal: Applied Economics, American Economic Association, vol. 6(1), pages 133-156, January.
    • Handle: RePEc:aea:aejapp:v:6:y:2014:i:1:p:133-56
    Note: DOI: 10.1257/app.6.1.133
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    Cited by:

    1. Sarah A. Cordes, 2018. "In Pursuit of the Common Good: The Spillover Effects of Charter Schools on Public School Students in New York City," Education Finance and Policy, MIT Press, vol. 13(4), pages 484-512, Fall.
    2. Bukowski, Paweł & Kobus, Martyna, 2018. "The threat of competition and public school performance: Evidence from Poland," Economics of Education Review, Elsevier, vol. 67(C), pages 14-24.
    3. Matthew Kasman & Susanna Loeb, 2013. "Principals' Perceptions of Competition for Students in Milwaukee Schools," Education Finance and Policy, MIT Press, vol. 8(1), pages 43-73, January.
    4. Rajashri Chakrabarti, 2013. "Accountability with Voucher Threats, Responses, and the Test-Taking Population: Regression Discontinuity Evidence from Florida," Education Finance and Policy, MIT Press, vol. 8(2), pages 121-167, April.
    5. Dur, Umut & Hammond, Robert G. & Lenard, Matthew A. & Morrill, Melinda & Morrill, Thayer & Paeplow, Colleen, 2025. "The attraction of magnet schools: Evidence from embedded lotteries in school assignment," Economics of Education Review, Elsevier, vol. 107(C).
    6. David N. Figlio & Cassandra M.D. Hart & Krzysztof Karbownik, 2020. "Effects of Scaling Up Private School Choice Programs on Public School Students," NBER Working Papers 26758, National Bureau of Economic Research, Inc.
    7. Bagde, Surendrakumar & Epple, Dennis & Taylor, Lowell, 2022. "The emergence of private high schools in India: The impact of public-private competition on public school students," Journal of Public Economics, Elsevier, vol. 215(C).
    8. Schneider, Kerstin & Schuchart, Claudia & Weishaupt, Horst & Riedel, Andrea, 2012. "The effect of free primary school choice on ethnic groups — Evidence from a policy reform," European Journal of Political Economy, Elsevier, vol. 28(4), pages 430-444.
    9. David M. Welsch & David M. Zimmer, 2015. "The Relationship Between Student Transfers and District Academic Performance: Accounting for Feedback Effects," Education Finance and Policy, MIT Press, vol. 10(3), pages 399-422, July.
    10. Gabriel Heller Sahlgren, 2014. "Handing Over the School Keys: The Impact of Privatisation on Education Quality," Economic Affairs, Wiley Blackwell, vol. 34(2), pages 196-210, June.
    11. Friesen, Jane & Harris, Benjamin Cerf & Woodcock, Simon D., 2013. "Open Enrolment and Student Achievement," IZA Discussion Papers 7642, Institute of Labor Economics (IZA).
    12. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    13. Chen, Feng & Harris, Douglas N., 2023. "The market-level effects of charter schools on student outcomes: A national analysis of school districts," Journal of Public Economics, Elsevier, vol. 228(C).
    14. Torberg Falch & Astrid Marie Jorde Sandsør & Bjarne Strøm, 2017. "Do Smaller Classes Always Improve Students’ Long-run Outcomes?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 79(5), pages 654-688, October.
    15. Thurston Domina & Quentin Brummet & Nikolas Pharris-Ciurej & Sonya R. Porter & Andrew Penner & Emily Penner & Tanya Sanabria, 2017. "Capturing More Than Poverty: School Free and Reduced-Price Lunch Data and Household Income," CARRA Working Papers 2017-09, Center for Economic Studies, U.S. Census Bureau.
    16. Yang, Minseok & Lee, Ho Jun, 2022. "Do school resources reduce socioeconomic achievement gap? Evidence from PISA 2015," International Journal of Educational Development, Elsevier, vol. 88(C).
    17. Daniel M. Hungerman & Kevin Rinz & Jay Frymark, 2019. "Beyond the Classroom: The Implications of School Vouchers for Church Finances," The Review of Economics and Statistics, MIT Press, vol. 101(4), pages 588-601, October.
    18. Halonen-Akatwijuka, Maija & Propper, Carol, 2024. "Competition, equity and quality in public services," European Economic Review, Elsevier, vol. 164(C).
    19. Navarro-Palau, Patricia, 2017. "Effects of differentiated school vouchers: Evidence from a policy change and date of birth cutoffs," Economics of Education Review, Elsevier, vol. 58(C), pages 86-107.
    20. Anna J. Egalite & Jonathan N. Mills, 2021. "Competitive Impacts of Means-Tested Vouchers on Public School Performance: Evidence from Louisiana," Education Finance and Policy, MIT Press, vol. 16(1), pages 66-91, Winter.
    21. Welsch, David M. & Zimmer, David M., 2012. "Do student migrations affect school performance? Evidence from Wisconsin's inter-district public school program," Economics of Education Review, Elsevier, vol. 31(1), pages 195-207.

    More about this item

    JEL classification:

    • 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
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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