An alternative instrument for private school competition
Empirical studies estimating the effect of private school competition on student outcomes commonly use the share of Catholics in the local population as an instrument for private school competition. I show that this is not a valid instrument since it is endogenous to private school competition and suggest using instead the local share of Catholics in the population in 1890 and its squared term. These instruments are very strong and are also exogenous to both student achievements and private school competition. I further show that using the current Catholic share as an instrument results in seriously flawed estimates of the effect of private school competition on math test scores and on educational attainment, to the extent that significant positive effects of private school competition on these outcome measures do not hold when the historical Catholic share in 1890 is used as an alternative instrument. The historical Catholic share in 1890 can also be applied to estimate the treatment effect of Catholic schools.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- James H. Stock & Motohiro Yogo, 2002. "Testing for Weak Instruments in Linear IV Regression," NBER Technical Working Papers 0284, National Bureau of Economic Research, Inc.
- Donald W.K. Andrews & James H. Stock, 2005.
"Inference with Weak Instruments,"
NBER Technical Working Papers
0313, National Bureau of Economic Research, Inc.
- William Sander, 1999. "Private Schools and Public School Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 34(4), pages 697-709.
- Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-85, May.
- West, Edwin G & Palsson, Halldor, 1988. "Parental Choice of School Characteristics: Estimation Using State-Wide Data," Economic Inquiry, Western Economic Association International, vol. 26(4), pages 725-40, October.
- Jepsen, Christopher, 2002.
"The role of aggregation in estimating the effects of private school competition on student achievement,"
Journal of Urban Economics,
Elsevier, vol. 52(3), pages 477-500, November.
- Christopher Jepsen, 2002. "The role of aggregation in estimating the effects of private school competition on student achievement," Open Access publications 10197/4436, School of Economics, University College Dublin.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000.
"Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools,"
NBER Working Papers
7831, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
- Cragg, John G. & Donald, Stephen G., 1993. "Testing Identifiability and Specification in Instrumental Variable Models," Econometric Theory, Cambridge University Press, vol. 9(02), pages 222-240, April.
- Caroline Minter Hoxby, 1994. "Do Private Schools Provide Competition for Public Schools?," NBER Working Papers 4978, National Bureau of Economic Research, Inc.
- Hamilton, Bruce W. & Macauley, Molly K., 1991. "Determinants and consequences of the private -- Public school choice," Journal of Urban Economics, Elsevier, vol. 29(3), pages 282-294, May.
- Greene, Kenneth V. & Kang, Byung-Goo, 2004. "The effect of public and private competition on high school outputs in New York State," Economics of Education Review, Elsevier, vol. 23(5), pages 497-506, October.
- Hausman, Jerry, 2015.
"Specification tests in econometrics,"
Publishing House "SINERGIA PRESS", vol. 38(2), pages 112-134.
- William N. Evans & Robert M. Schwab, 1995. "Finishing High School and Starting College: Do Catholic Schools Make a Difference?," The Quarterly Journal of Economics, Oxford University Press, vol. 110(4), pages 941-974.
- Cohen-Zada, Danny & Justman, Moshe, 2003. "The political economy of school choice: linking theory and evidence," Journal of Urban Economics, Elsevier, vol. 54(2), pages 277-308, September.
- Jinyong Hahn & Jerry Hausman, 2002.
"A New Specification Test for the Validity of Instrumental Variables,"
Econometric Society, vol. 70(1), pages 163-189, January.
- Jinyong Hahn & Jerry Hausman, 1999. "A New Specification Test for the Validity of Instrumental Variables," Working papers 99-11, Massachusetts Institute of Technology (MIT), Department of Economics.
- William Sander, 1996. "Catholic Grade Schools and Academic Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 540-548.
- Thomas Dee, 2005. "The Effects of Catholic Schooling on Civic Participation," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(5), pages 605-625, September.
- Neal, Derek, 1997. "The Effects of Catholic Secondary Schooling on Educational Achievement," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 98-123, January.
- Dee, Thomas S., 1998. "Competition and the quality of public schools," Economics of Education Review, Elsevier, vol. 17(4), pages 419-427, October.
- Christopher R. Geller & David L. Sjoquist & Mary Beth Walker, 2006. "The Effect of Private School Competition on Public School Performance in Georgia," Public Finance Review, SAGE Publishing, vol. 34(1), pages 4-32, January.
When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:28:y:2009:i:1:p:29-37. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.