Beyond the Classroom: The Implications of School Vouchers for Church Finances
Governments have used vouchers to spend billions of dollars on private education; much of this spending has gone to religiously-affiliated schools. We explore the possibility that vouchers could create a financial windfall for religious organizations operating private schools and in doing so impact the spiritual, moral, and social fabric of communities. We use a dataset of Catholic-parish finances from Milwaukee that includes information on both Catholic schools and the parishes that run them. We show that vouchers are now a dominant source of funding for many churches; parishes in our sample running voucher-accepting schools get more revenue from vouchers than from worshipers. We also find that voucher expansion prevents church closures and mergers. Despite these results, we fail to find evidence that vouchers promote religious behavior: voucher expansion causes significant declines in church donations and church spending on non-educational religious purposes. The meteoric growth of vouchers appears to offer financial stability for congregations while at the same time diminishing their religious activities.
|Date of creation:||Feb 2017|
|Note:||CH ED LE PE|
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- Chen, Daniel L. & Lind, Jo Thori, 2016.
"The Political Economy of Beliefs: Why Fiscal and Social Conservatives/Liberals (Sometimes) Come Hand-in-Hand,"
TSE Working Papers
16-722, Toulouse School of Economics (TSE).
- Chen, Daniel L. & Lind, Jo Thori, 2016. "The Political Economy of Beliefs: Why Fiscal and Social Conservatives/Liberals (Sometimes) Come Hand-in-Hand," IAST Working Papers 16-62, Institute for Advanced Study in Toulouse (IAST).
- Raphaël Franck & Laurence Iannaccone, 2014. "Religious decline in the 20th century West: testing alternative explanations," Public Choice, Springer, vol. 159(3), pages 385-414, June.
- 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.
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