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Impact of Voucher Design on Public School Performance: Evidence from Florida and Milwaukee Voucher Programs

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  • Chakrabarti Rajashri

    () (Department of Research and Statistics, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045, USA)

Abstract

This article compares two alternative voucher designs implemented in the U.S. The Milwaukee program was a “voucher shock” program that made low-income students eligible for vouchers. The Florida program was an accountability-tied voucher program that faced failing schools with “threat of vouchers” and stigma. In the context of a formal theoretical model, the study argues that the threatened schools will improve under the Florida-type program and this improvement will exceed that of the corresponding treated schools under the Milwaukee-type program. Using school-level scores from Florida and Wisconsin, and a difference-in-differences estimation strategy in trends, it then finds strong support in favor of these predictions.

Suggested Citation

  • Chakrabarti Rajashri, 2013. "Impact of Voucher Design on Public School Performance: Evidence from Florida and Milwaukee Voucher Programs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 14(1), pages 349-394, July.
  • Handle: RePEc:bpj:bejeap:v:14:y:2013:i:1:p:349-394:n:1
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    Cited by:

    1. Rajashri Chakrabarti, 2013. "Vouchers, Public School Response, And The Role Of Incentives: Evidence From Florida," Economic Inquiry, Western Economic Association International, vol. 51(1), pages 500-526, January.
    2. Rajashri Chakrabarti, 2011. "Vouchers, responses, and the test-taking population: regression discontinuity evidence from Florida," Staff Reports 486, Federal Reserve Bank of New York.
    3. Chakrabarti, Rajashri, 2014. "Incentives and responses under No Child Left Behind: Credible threats and the role of competition," Journal of Public Economics, Elsevier, vol. 110(C), pages 124-146.
    4. Chakrabarti, Rajashri, 2008. "Can increasing private school participation and monetary loss in a voucher program affect public school performance? Evidence from Milwaukee," Journal of Public Economics, Elsevier, vol. 92(5-6), pages 1371-1393, June.
    5. Craig, Steven G. & Imberman, Scott A. & Perdue, Adam, 2015. "Do administrators respond to their accountability ratings? The response of school budgets to accountability grades," Economics of Education Review, Elsevier, vol. 49(C), pages 55-68.
    6. Akyol, Metin, 2016. "Do educational vouchers reduce inequality and inefficiency in education?," Economics of Education Review, Elsevier, vol. 55(C), pages 149-167.
    7. Chiang, Hanley, 2009. "How accountability pressure on failing schools affects student achievement," Journal of Public Economics, Elsevier, vol. 93(9-10), pages 1045-1057, October.
    8. 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.
    9. 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.
    10. Morten Anstorp Rosenkvist, 2010. "Using Student Test Results for Accountability and Improvement: A Literature Review," OECD Education Working Papers 54, OECD Publishing.
    11. West, Martin R. & Peterson, Paul E., 2005. "The Efficacy of Choice Threats within School Accountability Systems: Results from Legislatively Induced Experiments," Working Paper Series rwp05-033, Harvard University, John F. Kennedy School of Government.
    12. Ana Balcao Reis & Carmo Seabra & Luis C. Nunes, 2012. "Ranking schools: a step toward increased accountability or a mere discriminatory practice?," FEUNL Working Paper Series wp567, Universidade Nova de Lisboa, Faculdade de Economia.
    13. Rajashri Chakrabarti & Noah Schwartz, 2013. "Unintended consequences of school accountability policies: evidence from Florida and implications for New York," Economic Policy Review, Federal Reserve Bank of New York, issue May, pages 19-44.
    14. Hemelt, Steven W., 2011. "Performance effects of failure to make Adequate Yearly Progress (AYP): Evidence from a regression discontinuity framework," Economics of Education Review, Elsevier, vol. 30(4), pages 702-723, August.
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    16. Ferreyra, Maria Marta & Liang, Pierre Jinghong, 2012. "Information asymmetry and equilibrium monitoring in education," Journal of Public Economics, Elsevier, vol. 96(1), pages 237-254.
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    21. Brian Gill & J.R. Lockwood III & Francisco Martorell & Claude Messan Setodji & Kevin Booker, "undated". "An Exploratory Analysis of Adequate Yearly Progress, Identification for Improvement, and Student Achievement in Two States and Three Cities," Mathematica Policy Research Reports 22a6c1d142b1420dbe9ba386e, Mathematica Policy Research.

    More about this item

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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