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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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    Citations

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    Cited by:

    1. is not listed on IDEAS
    2. Sarah R. Cohodes & Elizabeth M. Setren & Christopher R. Walters, 2021. "Can Successful Schools Replicate? Scaling Up Boston's Charter School Sector," American Economic Journal: Economic Policy, American Economic Association, vol. 13(1), pages 138-167, February.
    3. Gary Cornwall & Beau Sauley, 2021. "Indirect effects and causal inference: reconsidering regression discontinuity," Journal of Spatial Econometrics, Springer, vol. 2(1), pages 1-28, December.
    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. 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.
    6. repec:osf:socarx:y6wh4_v1 is not listed on IDEAS
    7. Shi, Ying & Singleton, John D., 2019. "Expertise and Independence on Governing Boards: Evidence from School Districts," IZA Discussion Papers 12414, Institute of Labor Economics (IZA).
    8. Helen F. Ladd & John D. Singleton, 2020. "The Fiscal Externalities of Charter Schools: Evidence from North Carolina," Education Finance and Policy, MIT Press, vol. 15(1), pages 191-208, Winter.
    9. Jeffrey Max & Christina Tuttle & Philip Gleason & Diana McCallum & Brian Gill, "undated". "How Does School Choice Affect Student Achievement in Traditional Public Schools?," Mathematica Policy Research Reports b36d8f1911714dd68ceac8a3e, Mathematica Policy Research.
    10. Bruhn, Jesse & Imberman, Scott & Winters, Marcus, 2022. "Regulatory arbitrage in teacher hiring and retention: Evidence from Massachusetts Charter Schools," Journal of Public Economics, Elsevier, vol. 215(C).

    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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