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Horizontal Differentiation and the Policy Effect of Charter Schools

Author

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  • Michael Gilraine
  • Uros Petronijevic
  • John D. Singleton

Abstract

While school choice may enhance competition, incentives for public schools to raise productivity may be muted if public education is imperfectly substitutable with alternatives. This paper estimates the aggregate effect of charter school expansion on education quality while accounting for the horizontal differentiation of charter programs. Our research design leverages variation following the removal of North Carolina's statewide cap to compare test score changes for students who lived near entering charters to those farther away. We find learning gains that are driven by public schools responding to increased competition from non-horizontally differentiated charter schools, even before those charters actually open.

Suggested Citation

  • Michael Gilraine & Uros Petronijevic & John D. Singleton, 2021. "Horizontal Differentiation and the Policy Effect of Charter Schools," American Economic Journal: Economic Policy, American Economic Association, vol. 13(3), pages 239-276, August.
    • Handle: RePEc:aea:aejpol:v:13:y:2021:i:3:p:239-76
    DOI: 10.1257/pol.20200531
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    Citations

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    Cited by:

    1. Andrew Bibler & Stephen B. Billings & Stephen L. Ross, 2023. "Does School Choice Leave Behind Future Criminals?," Working papers 2023-02, University of Connecticut, Department of Economics.
    2. Tobin, Zachary, 2024. "How do public schools respond to competition? Evidence from a charter school expansion," Economics of Education Review, Elsevier, vol. 99(C).
    3. Cohn, Ricardo Meilman, 2020. "Effects of public-school choice on private schools: Evidence from open enrollment reform," CLEF Working Paper Series 23, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    4. Sorensen, Lucy C. & Holt, Stephen B., 2021. "Sorting it Out: The Effects of Charter Expansion on Teacher and Student Composition at Traditional Public Schools," Economics of Education Review, Elsevier, vol. 82(C).
    5. John Garen, 2023. "Enhancing economic freedom via school choice and competition: Have state laws been enabling enough to generate broad‐based effects?," American Journal of Economics and Sociology, Wiley Blackwell, vol. 82(4), pages 289-312, July.
    6. Natalie Irmert & Jan Bietenbeck & Linn Mattisson & Felix Weinhardt, 2023. "Autonomous Schools, Achievement, and Segregation," CESifo Working Paper Series 10831, CESifo.
    7. 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.
    8. W. Bentley MacLeod & Miguel Urquiola, 2018. "Is Education Consumption or Investment? Implications for the Effect of School Competition," NBER Working Papers 25117, National Bureau of Economic Research, Inc.
    9. 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).

    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
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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