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Fiscal and Education Spillovers from Charter School Expansion

Author

Listed:
  • Matthew Ridley
  • Camille Terrier

Abstract

Do charter schools drain resources and high-achieving peers from noncharter schools? We provide new evidence on the fiscal and educational consequences of charter expansion for noncharter students in Massachusetts, which temporarily compensates districts losing students to charter schools. Exploiting a 2011 reform that lifted caps on charter schools for underperforming districts, we use complementary synthetic control (SC) and differences-in-differences instrumental variables (IV-DiD) estimators. Our results suggest charter expansion leaves districts’ overall per pupil revenue and expenditure unchanged, but induces districts to shift expenditure from capital investment and support services to instruction and salaries and ultimately increases noncharter students’ achievement in math.

Suggested Citation

  • Matthew Ridley & Camille Terrier, 2025. "Fiscal and Education Spillovers from Charter School Expansion," Journal of Human Resources, University of Wisconsin Press, vol. 60(4), pages 1356-1404.
    • Handle: RePEc:uwp:jhriss:v:60:y:2025:i:4:p:1356-1404
    Note: DOI: https://doi.org/10.3368/jhr.0321-11538R2
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    File URL: http://jhr.uwpress.org/cgi/reprint/60/4/1356
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    More about this item

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • 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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