IDEAS home Printed from https://ideas.repec.org/p/cpr/ceprdp/8272.html
   My bibliography  Save this paper

Scale economies can offset the benefits of competition: Evidence from a school consolidation reform in a universal voucher system

Author

Listed:
  • de Haan, Monique
  • Leuven, Edwin
  • Oosterbeek, Hessel

Abstract

A large school consolidation reform in the Netherlands changed minimum school size rules underlying public funding. The supply of schools decreased by 15 percent, but this varied considerably across municipalities. We find that reducing the number of schools by 10 percent increases pupils' achievement by 3 percent of a standard deviation. A reduction in the supply of schools implies, for a given number of pupils, an increase in average school size. We present evidence that in our context scale economies dominated the effects of choice and competition. This points to an often ignored trade-off between scale and competition.

Suggested Citation

  • de Haan, Monique & Leuven, Edwin & Oosterbeek, Hessel, 2011. "Scale economies can offset the benefits of competition: Evidence from a school consolidation reform in a universal voucher system," CEPR Discussion Papers 8272, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:8272
    as

    Download full text from publisher

    File URL: http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=8272
    Download Restriction: CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Card & Martin D. Dooley & A. Abigail Payne, 2010. "School Competition and Efficiency with Publicly Funded Catholic Schools," American Economic Journal: Applied Economics, American Economic Association, vol. 2(4), pages 150-176, October.
    2. Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G. & Branch, Gregory F., 2007. "Charter school quality and parental decision making with school choice," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 823-848, June.
    3. Böhlmark, Anders & Lindahl, Mikael, 2008. "Does School Privatization Improve Educational Achievement? Evidence from Sweden's Voucher Reform," IZA Discussion Papers 3691, Institute of Labor Economics (IZA).
    4. Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1535-1558, December.
    5. Cecilia Elena Rouse, 1998. "Private School Vouchers and Student Achievement: An Evaluation of the Milwaukee Parental Choice Program," The Quarterly Journal of Economics, Oxford University Press, vol. 113(2), pages 553-602.
    6. Julie Berry Cullen & Brian A Jacob & Steven Levitt, 2006. "The Effect of School Choice on Participants: Evidence from Randomized Lotteries," Econometrica, Econometric Society, vol. 74(5), pages 1191-1230, September.
    7. Brasington, David M., 1999. "Joint provision of public goods: the consolidation of school districts," Journal of Public Economics, Elsevier, vol. 73(3), pages 373-393, September.
    8. Bettinger, Eric P., 2005. "The effect of charter schools on charter students and public schools," Economics of Education Review, Elsevier, vol. 24(2), pages 133-147, April.
    9. Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
    10. Paul Peterson & William Howell & Patrick J. Wolf & David Campbell, 2003. "School Vouchers. Results from Randomized Experiments," NBER Chapters, in: The Economics of School Choice, pages 107-144, National Bureau of Economic Research, Inc.
    11. Derek Neal, 2002. "How Vouchers Could Change the Market for Education," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 25-44, Fall.
    12. Scott A. Imberman, 2011. "Achievement and Behavior in Charter Schools: Drawing a More Complete Picture," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 416-435, May.
    13. Hsieh, Chang-Tai & Urquiola, Miguel, 2006. "The effects of generalized school choice on achievement and stratification: Evidence from Chile's voucher program," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1477-1503, September.
    14. Miguel Urquiola, 2005. "Does School Choice Lead to Sorting? Evidence from Tiebout Variation," American Economic Review, American Economic Association, vol. 95(4), pages 1310-1326, September.
    15. Helen F. Ladd, 2002. "School Vouchers: A Critical View," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 3-24, Fall.
    16. Stephen Gibbons & Stephen Machin & Olmo Silva, 2008. "Choice, Competition, and Pupil Achievement," Journal of the European Economic Association, MIT Press, vol. 6(4), pages 912-947, June.
    17. Kuziemko, Ilyana, 2006. "Using shocks to school enrollment to estimate the effect of school size on student achievement," Economics of Education Review, Elsevier, vol. 25(1), pages 63-75, February.
    18. Joshua Angrist & Eric Bettinger & Michael Kremer, 2006. "Long-Term Educational Consequences of Secondary School Vouchers: Evidence from Administrative Records in Colombia," American Economic Review, American Economic Association, vol. 96(3), pages 847-862, June.
    19. Jesse Rothstein, 2007. "Does Competition Among Public Schools Benefit Students and Taxpayers? Comment," American Economic Review, American Economic Association, vol. 97(5), pages 2026-2037, December.
    20. David M. Brasington, 2003. "Size and School District Consolidation: Do Opposites Attract?," Economica, London School of Economics and Political Science, vol. 70(280), pages 673-690, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Burgess, Simon, 2016. "Human Capital and Education: The State of the Art in the Economics of Education," IZA Discussion Papers 9885, Institute of Labor Economics (IZA).
    2. De Witte, K. & Van Klaveren, C., 2012. "The effect of primary school closures on educational attainments of students," Working Papers 42, Top Institute for Evidence Based Education Research.

    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. Böhlmark, Anders & Lindahl, Mikael, 2007. "The Impact of School Choice on Pupil Achievement, Segregation and Costs: Swedish Evidence," IZA Discussion Papers 2786, Institute of Labor Economics (IZA).
    2. Dennis Epple & Richard E. Romano & Miguel Urquiola, 2017. "School Vouchers: A Survey of the Economics Literature," Journal of Economic Literature, American Economic Association, vol. 55(2), pages 441-492, June.
    3. Bernardo Lara & Alejandra Mizala & Andrea Repetto, 2009. "The Effectiveness of Private Voucher Education: Evidence from Structural School Switches," Documentos de Trabajo 263, Centro de Economía Aplicada, Universidad de Chile.
    4. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2009. "Econometric Methods for Causal Evaluation of Education Policies and Practices: A Non-Technical Guide," CESifo Working Paper Series 2877, CESifo.
    5. Song, Yang, 2019. "Sorting, school performance and quality: Evidence from China," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 238-261.
    6. Felipe Barrera-Osorio & Darío Maldonado & Catherine Rodríguez, 2012. "Calidad de la Educación Básica y Media en Colombia: Diagnóstico y Propuestas," Documentos CEDE 010321, Universidad de los Andes - CEDE.
    7. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2011. "Econometric methods for causal evaluation of education policies and practices: a non-technical guide," Education Economics, Taylor & Francis Journals, vol. 19(2), pages 109-137.
    8. Lai, Fang & Sadoulet, Elisabeth & de Janvry, Alain, 2009. "The adverse effects of parents' school selection errors on academic achievement: Evidence from the Beijing open enrollment program," Economics of Education Review, Elsevier, vol. 28(4), pages 485-496, August.
    9. Figlio, D. & Karbownik, K. & Salvanes, K.G., 2016. "Education Research and Administrative Data," Handbook of the Economics of Education,, Elsevier.
    10. Lovenheim, Michael F. & Walsh, Patrick, 2018. "Does choice increase information? Evidence from online school search behavior," Economics of Education Review, Elsevier, vol. 62(C), pages 91-103.
    11. Chang-Tai Hsieh & Miguel Urquiola, 2003. "When Schools Compete, How Do They Compete? An Assessment of Chile's Nationwide School Voucher Program," NBER Working Papers 10008, National Bureau of Economic Research, Inc.
    12. W. Bentley MacLeod & Miguel Urquiola, 2018. "Is Education Consumption or Investment? Implications for the Effect of School Competition," NBER Working Papers 25117, National Bureau of Economic Research, Inc.
    13. Friesen, Jane & Harris, Benjamin Cerf & Woodcock, Simon, 2013. "Open Enrolment and Student Achievement," CLSSRN working papers clsrn_admin-2013-46, Vancouver School of Economics, revised 22 Mar 2014.
    14. John D. Singleton, 2019. "Incentives and the Supply of Effective Charter Schools," American Economic Review, American Economic Association, vol. 109(7), pages 2568-2612, July.
    15. Nicolas Grau & Daniel Hojman & Alejandra Mizala, 2015. "Destructive Creation: School Turnover and Educational Attainment," Documentos de Trabajo 312, Centro de Economía Aplicada, Universidad de Chile.
    16. Akabayashi, Hideo & Araki, Hiroko, 2011. "Do education vouchers prevent dropout at private high schools? Evidence from Japanese policy changes," Journal of the Japanese and International Economies, Elsevier, vol. 25(3), pages 183-198, September.
    17. Gerdes, Christer, 2010. "Does Immigration Induce ‘Native Flight’ from Public Schools? Evidence from a large scale voucher program," SULCIS Working Papers 2010:1, Stockholm University, Linnaeus Center for Integration Studies - SULCIS.
    18. Roland G. Fryer, Jr, 2016. "The Production of Human Capital in Developed Countries: Evidence from 196 Randomized Field Experiments," NBER Working Papers 22130, National Bureau of Economic Research, Inc.
    19. Jackson, C. Kirabo, 2012. "School competition and teacher labor markets: Evidence from charter school entry in North Carolina," Journal of Public Economics, Elsevier, vol. 96(5), pages 431-448.
    20. Zhang, Hongliang, 2016. "Identification of treatment effects under imperfect matching with an application to Chinese elite schools," Journal of Public Economics, Elsevier, vol. 142(C), pages 56-82.

    More about this item

    Keywords

    Scale economies; School choice; School consolidation; Student achievement;
    All these keywords.

    JEL classification:

    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • 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

    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:cpr:ceprdp:8272. 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: (). General contact details of provider: https://www.cepr.org .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.