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Markets (vouchers, choice, for-profits, vendors)
The quality of college education is hard for students and employers to observe. Knowing this, in the last 40 years over 1,000 colleges in the US and China alone have changed their names to signal higher quality. We study how these changes affect college choice and labor market performance of college graduates. Using administrative data, we show that colleges which change their names enroll higher-aptitude students and the effects persist over time. These effects are larger for attractive but misleading name changes, and larger among students with less information about the college. In a large resume audit study of the labor market for recent graduates, we find a small, insignificant premium for applicants listing new college names in most jobs, but a penalty in low-pay, low-status jobs. To better understand these results, we analyze scraped online text data, survey data, and other administrative data. These show that while many college applicants lack important information about college quality, employers can see that college name changes lead to an increase in graduate aptitude. Our study demonstrates that signals designed to change perception can have real, lasting impacts on market outcomes.
In the United States, people with more education vote more. But, we know little about why education increases political participation or whether higher-quality education increases civic participation. We study applicants to Boston charter schools, using school lotteries to estimate charter attendance impacts for academic and voting outcomes. First, we confirm large academic gains for students in the sample of charter schools and cohorts investigated here. Second, we find that charter attendance boosts voter participation. Voting in the first presidential election after a student turns 18 increased substantially, by six percentage points from a base of 35 percent. The voting effect is driven entirely by girls and there is no increase in voter registration. Rich data and the differential effects by gender enable exploration of multiple potential channels for the voting impact. We find evidence consistent with two mechanisms: charter schools increase voting by increasing students’ noncognitive skills and by politicizing families who participate in charter school education.
The Covid-19 pandemic drastically disrupted the functioning of U.S. public schools, potentially changing the relative appeal of alternatives such as homeschooling and private schools. Using longitudinal student-level administrative data from Michigan and nationally representative data from the Census Household Pulse Survey, we show how the pandemic affected families’ choices of school sector. We document four central facts. First, public school enrollment declined noticeably in fall 2020, with about 3 percent of Michigan students and 10 percent of kindergartners using other options. Second, most of this was driven by homeschooling rates jumping substantially, driven largely by families with children in elementary school. Third, homeschooling increased more where schools provided in-person instruction while private schooling increased more where instruction was remote, suggesting heterogeneity in parental concerns about children’s physical health and instructional quality. Fourth, kindergarten declines were highest among low income and Black families while declines in other grades were highest among higher income and White families, highlighting important heterogeneity by students’ existing attachment to public schools. Our results shed light on how families make schooling decisions and imply potential longer-run disruptions to public schools in the form of decreased enrollment and funding, changed composition of the student body, and increased size of the next kindergarten cohort.
Cognition, a component of human capital, is fundamental for decision-making, and understanding the causes of human capital depreciation in old age is especially important in aging societies. Using various proxy measures of cognitive performance from a longitudinal survey in South Africa, we study how education affects cognition in late adulthood. We show that an extra year of schooling improves memory performance and general cognition. We find evidence of heterogeneous effects by gender: the effects are stronger among women. We explore potential mechanisms, and we show that a more supportive social environment, improved health habits, and reduced stress levels likely play a critical role in mediating the beneficial effects of educational attainment on cognition among the elderly.
We examine the causal influence of educators elected to the school board on local education production. The key empirical challenge is that school board composition is endogenously determined through the electoral process. To overcome this, we develop a novel research design that leverages California's randomized assignment of the order that candidate names appear on election ballots. We find that an additional educator elected to the school board reduces charter schooling and increases teacher salaries in the school district relative to other board members. We interpret these findings as consistent with educator board members shifting bargaining in favor of teachers' unions.
Over the last decade, more and more schools have adopted Universal Free Meals (UFM), a program that provides meals free of charge to all students, regardless of household income. Recent research finds UFM increases participation in school meals, improves test scores, and reduces incidences of bad behavior. Additionally, advocates cite stigma reduction as one of UFM’s many benefits, but to date, scholars have yet to provide empirical evidence of this claim. This paper fills the gap in the literature by being the first to examine whether UFM influences student perceptions of school climate. I use individual, student survey responses and school meal participation data from New York City Department of Education (NYCDOE) to investigate whether and to what extent UFM changes participation behavior and student perceptions of their school climate. Using a difference-in-differences design, I exploit students’ staggered exposure to UFM, among those that are ever exposed, to investigate if UFM influences participation and improves student perceptions of bullying, fighting, respect, and safety. I find UFM increases school lunch participation among students that were previously eligible for free meals but rarely participated, suggesting that UFM affects participation patterns beyond simply reducing the price of food. All students, regardless of socioeconomic status, report reductions in perceptions of bullying and fighting within school, as well as improvements in perceptions of safety outside of school. Notably, students ever designated as eligible for free/reduced price meals and those that ate school lunches last year report feeling safer inside the school cafeteria. Thus, not only does UFM improve perceptions associated with stigma for students who directly interact with UFM, but the program also has positive effects for all students regardless of their socioeconomic status.
Education savings accounts (ESAs) are education funding mechanisms that allow for families to receive a deposit of public funds to a government-authorized savings account. Using student-level longitudinal data, this paper examines how families participating in the Florida Gardiner Scholarship Program use education savings account funds. Results indicate that families use an increasing proportion of ESA funds the longer students remain in the program. The longer students remain in the program, the share of ESA funds devoted to private school tuition decreases while expenditure shares increase for curriculum, instruction, tutoring, and specialized services. Students in rural areas not only use a greater portion of their ESA funds than families in urban and suburban areas, but they also spend smaller portions of their funds on tuition and appear to customize more.
In the competitive U.S. higher education market, institutions differentiate themselves to attract both students and tuition dollars. One understudied example of this differentiation is the increasing trend of "colleges" becoming "universities" by changing their names. Leveraging variation in the timing of such conversions in an event study framework, I show that becoming a university increases enrollments at both the undergraduate and graduate levels, which leads to an increase in degree production and total revenues. I further find that these effects are largest when institutions are the first in their market to convert to a university and can lead to negative spillover effects on non-converting colleges.
Between 2005 and 2016, international enrollment in US higher education nearly doubled. I examine how trade shocks in education affect public universities' decision-making. I construct a shift-share instrument to exploit institutions' historical networks with different origins of international students, income growth, and exchange-rate fluctuations. Contrary to claims that US-born students are crowded out, I find that international students increase schools' funding via tuition payments, which leads to increased in-state enrollment and lower tuition prices. Schools also keep steady per-student spending and recruit more students with high math scores. Lastly, states allocate more appropriations to universities that attract fewer international students.
Many public school diversity efforts rely on reassigning students from one school to another. While opponents of such efforts articulate concerns about the consequences of reassignments for students’ educational experiences, little evidence exists regarding these effects, particularly in contemporary policy contexts. Using an event study design, we leverage data from an innovative socioeconomic school desegregation plan to estimate the effects of reassignment on reassigned students’ achievement, attendance, and exposure to exclusionary discipline. Between 2000 and 2010, North Carolina’s Wake County Public School System (WCPSS) reassigned approximately 25 percent of students with the goal of creating socioeconomically diverse schools. Although WCPSS’s controlled school choice policy provided opportunities for reassigned students to opt out of their newly reassigned schools, our analysis indicates that reassigned students typically attended their newly reassigned schools. We find that reassignment modestly boosts reassigned students’ math achievement, reduces reassigned students’ rate of suspension, and has no offsetting negative consequences on other outcomes. Exploratory analyses suggest that the effects of reassignment do not meaningfully vary by student characteristics or school choice decisions. The results suggest that carefully designed school assignment policies can improve school diversity without imposing academic or disciplinary costs on reassigned students.