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Do charter schools crowd out private school enrollment? Evidence from Michigan

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  • Rajashri Chakrabarti
  • Joydeep Roy

Abstract

Charter schools have been one of the most important dimensions of recent school reform measures in the United States. Currently, there are more than 4,500 charter schools spread across forty U.S. states and the District of Columbia. Though there have been numerous studies on the effects of charter schools, these have mostly been confined to analyzing the effects on student achievement, student demographic composition, parental satisfaction, and the competitive effects on regular public schools. This study departs from the existing literature by investigating the effect of charter schools on enrollment in private schools. To investigate this issue empirically, we focus on the state of Michigan, where there was a significant spread of charter schools in the 1990s. Using data on private school enrollment from decennial censuses and biennial National Center for Education Statistics private school surveys, and using a fixed-effects as well as instrumental-variables strategy that exploits exogenous variation from Michigan charter law, we investigate the effect of charter school penetration on private school enrollment. We find some evidence of a decline in enrollment in private schools - but the effect is only modest in size. This finding is reasonably robust, and survives several robustness checks.

Suggested Citation

  • Rajashri Chakrabarti & Joydeep Roy, 2010. "Do charter schools crowd out private school enrollment? Evidence from Michigan," Staff Reports 472, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednsr:472
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    References listed on IDEAS

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    Cited by:

    1. repec:bla:coecpo:v:36:y:2018:i:1:p:59-72 is not listed on IDEAS
    2. Chakrabarti, Rajashri & Roy, Joydeep, 2015. "Housing markets and residential segregation: Impacts of the Michigan school finance reform on inter- and intra-district sorting," Journal of Public Economics, Elsevier, vol. 122(C), pages 110-132.
    3. Margaret Brehm & Scott A. Imberman & Michael Naretta, 2017. "Capitalization of Charter Schools into Residential Property Values," Education Finance and Policy, MIT Press, vol. 12(1), pages 1-27, Winter.
    4. repec:eee:pubeco:v:159:y:2018:i:c:p:160-182 is not listed on IDEAS
    5. Rajashri Chakrabarti & Max Livingston & Joydeep Roy, 2014. "Did Cuts in State Aid During the Great Recession Lead to Changes in Local Property Taxes?," Education Finance and Policy, MIT Press, vol. 9(4), pages 383-416, October.
    6. Robert Bifulco & Randall Reback, 2014. "Fiscal Impacts of Charter Schools: Lessons from New York," Education Finance and Policy, MIT Press, vol. 9(1), pages 86-107, January.
    7. repec:eee:pubeco:v:158:y:2018:i:c:p:48-62 is not listed on IDEAS
    8. Dennis Epple & Richard Romano & Ron Zimmer, 2015. "Charter Schools: A Survey of Research on Their Characteristics and Effectiveness," NBER Working Papers 21256, National Bureau of Economic Research, Inc.
    9. Apostolova-Mihaylova, Maria & Yelowitz, Aaron, 2015. "Health Insurance, Fertility, and the Wantedness of Pregnancies: Evidence from Massachusetts," MPRA Paper 61237, University Library of Munich, Germany.

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    Keywords

    Education - Economic aspects ; Public schools ; Private schools;

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