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School choice and school competition: Evidence from the United ...

Source: www.economics.harvard.edu
Topic: Economic Policy

Sort Desciption: SWEDISH ECONOMIC POLICY REVIEW 10 (2003) ??-?? 11. School choice and school competition:. Evidence from the United States. Caroline M. Hoxby ...

Content Inside: SWEDISH ECONOMIC POLICY REVIEW 10 (2003) ??-?? 11 School choice and school competition: Evidence from the United States Caroline M. Hoxby * Summary The most frequently asked questions about school choice are: Do public schools respond constructively to competition induced by school choice by raising their own productivity? Does students achievement rise when they attend voucher or charter schools? Do voucher and charter schools end up with a selection of the better stu- dents (cream-skim)? I review the evidence on these questions from the United States relying primarily on recent policy experiments. Pub- lic schools do respond constructively to competition by raising their achievement and productivity. The best studies on this question ex- amine the introduction of choice programs that have been sufficiently large and long-lived to produce competition. Students achievement generally does rise when they attend voucher or charter schools. The best studies on this question use as a control group students who are randomized out of choice programs. Not only do currently enacted voucher and charter school programs not cream-skim; they dispro- portionately attract students who were performing badly in their regu- lar public schools. This confirms what theory predicts: there are no general results on the sorting consequences of school choice. The sort- ing consequences of a school choice plan depend strongly on its de- sign. JEL classification: H70 I22 L32 L51. Keywords: School choice vouchers charter schools education hu- man capital. * Caroline M Hoxby is professor at the Department of Economics at Harvard University. 12 SWEDISH ECONOMIC POLICY REVIEW 10 (2003) ??-?? 13 School choice and school competition: Evidence from the United States Caroline M. Hoxby * The first generation of noteworthy school choice programs in the United States were enacted in the period from 1988 to 1994. Ap- proximately a decade later it is appropriate to assess what we have le ...

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