IDEAS home Printed from https://ideas.repec.org/a/bla/ajecsc/v82y2023i4p289-312.html
   My bibliography  Save this article

Enhancing economic freedom via school choice and competition: Have state laws been enabling enough to generate broad‐based effects?

Author

Listed:
  • John Garen

Abstract

An aspect of economic freedom that varies across U.S. states is K‐12 educational freedom. Some states allow a degree of choice for families in selecting schools outside public schools for their children. However, the enabling laws for such programs are often quite restrictive and limited to few children. Can this limited degree of competition and choice have a noticeable effect on an entire state's overall K‐12 performance? I find strikingly large test score gains for states that have adopted voucher programs and/or Education Savings Accounts (ESAs), swamping the effect of per pupil K‐12 spending on test scores. Moreover, vouchers and ESAs are associated with less per pupil spending. These effects are robust to a host of specification checks. A key factor is the amount of a program's funding that “follows the student,” even if a small number of students are eligible. Overall, it seems that even a small measure of educational freedom has a large effect.

Suggested Citation

  • 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.
    • Handle: RePEc:bla:ajecsc:v:82:y:2023:i:4:p:289-312
    DOI: 10.1111/ajes.12515
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ajes.12515
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ajes.12515?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Atila Abdulkadiroğlu & Joshua D. Angrist & Susan M. Dynarski & Thomas J. Kane & Parag A. Pathak, 2011. "Accountability and Flexibility in Public Schools: Evidence from Boston's Charters And Pilots," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 126(2), pages 699-748.
    2. 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.
    3. John Garen, 2020. "The Allocation and Exchange of Property Rights as a Way to Understand Comparative Economic Systems and Managerial Economics," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 35(Winter 20), pages 43-59.
    4. C. Kirabo Jackson & Claire Mackevicius, 2021. "The Distribution of School Spending Impacts," NBER Working Papers 28517, National Bureau of Economic Research, Inc.
    5. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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).
    2. 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.
    3. Natalie Irmert & Jan Bietenbeck & Linn Mattisson & Felix Weinhardt, 2023. "Autonomous Schools, Achievement, and Segregation," CESifo Working Paper Series 10831, CESifo.
    4. Clément de Chaisemartin & Luc Behaghel, 2020. "Estimating the Effect of Treatments Allocated by Randomized Waiting Lists," Econometrica, Econometric Society, vol. 88(4), pages 1453-1477, July.
    5. David J. Deming & Sarah Cohodes & Jennifer Jennings & Christopher Jencks, 2016. "School Accountability, Postsecondary Attainment, and Earnings," The Review of Economics and Statistics, MIT Press, vol. 98(5), pages 848-862, December.
    6. Eric Chyn & Lawrence F. Katz, 2021. "Neighborhoods Matter: Assessing the Evidence for Place Effects," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 197-222, Fall.
    7. Caterina Calsamiglia & Chao Fu & Maia Güell, 2014. "Structural Estimation of a Model of School Choices: the Boston Mechanism vs. Its Alternatives," Working Papers 2014-21, FEDEA.
    8. Helen F. Ladd & Charles T. Clotfelter & John B. Holbein, 2017. "The Growing Segmentation of the Charter School Sector in North Carolina," Education Finance and Policy, MIT Press, vol. 12(4), pages 536-563, Fall.
    9. Susan Dynarski & Daniel Hubbard & Brian Jacob & Silvia Robles, 2018. "Estimating the Effects of a Large For-Profit Charter School Operator," NBER Working Papers 24428, National Bureau of Economic Research, Inc.
    10. Stephen Machin & Matteo Sandi, 2020. "Autonomous Schools and Strategic Pupil Exclusion," The Economic Journal, Royal Economic Society, vol. 130(625), pages 125-159.
    11. Song, Yang, 2019. "Sorting, school performance and quality: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 238-261.
    12. Luc Behaghel & Clément de Chaisemartin & Marc Gurgand, 2017. "Ready for Boarding? The Effects of a Boarding School for Disadvantaged Students," American Economic Journal: Applied Economics, American Economic Association, vol. 9(1), pages 140-164, January.
    13. Scott Carrell & Bruce Sacerdote, 2017. "Why Do College-Going Interventions Work?," American Economic Journal: Applied Economics, American Economic Association, vol. 9(3), pages 124-151, July.
    14. Eyles, Andrew & Machin, Stephen & McNally, Sandra, 2017. "Unexpected school reform: Academisation of primary schools in England," Journal of Public Economics, Elsevier, vol. 155(C), pages 108-121.
    15. Cid, Alejandro & Balsa, Ana, 2012. "Impact Evaluation of a Privately Managed Tuition-Free Middle school in a Poor Neighborhood in Montevideo," MPRA Paper 39913, University Library of Munich, Germany.
    16. Gregory Gilpin & Ezra Karger & Peter Nencka, 2021. "The Returns to Public Library Investment," Working Paper Series WP-2021-06, Federal Reserve Bank of Chicago, revised 20 Jul 2021.
    17. Andrew Eyles & Stephen Machin & Olmo Silva, 2018. "Academies 2 – The New Batch: The Changing Nature of Academy Schools in England," Fiscal Studies, John Wiley & Sons, vol. 39(1), pages 121-158, March.
    18. Hinnerich, Björn Tyrefors & Vlachos, Jonas, 2017. "The impact of upper-secondary voucher school attendance on student achievement. Swedish evidence using external and internal evaluations," Labour Economics, Elsevier, vol. 47(C), pages 1-14.
    19. María Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    20. Adam M. Lavecchia & Philip Oreopoulos & Robert S. Brown, 2020. "Long-Run Effects from Comprehensive Student Support: Evidence from Pathways to Education," American Economic Review: Insights, American Economic Association, vol. 2(2), pages 209-224, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ajecsc:v:82:y:2023:i:4:p:289-312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0002-9246 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.