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Markets (vouchers, choice, for-profits, vendors)
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Online credit recovery (OCR) courses are the most common means through which students retake courses required for high school graduation. Yet a growing body of research has raised concerns regarding student learning in these courses, with low quality assessments posited as one contributing factor. To address this concern, we reviewed every assessment item from a widely used OCR Algebra 1 course. We also examined pathways for passing the course mastery tests without learning content. In addition, we identified if and how states regulate OCR. We found OCR assessments as executed lacked rigor and validity. We offer recommendations to improve rigor, close pathways that call into question the validity of results, strengthen implementation procedures, and increase state-level oversight of providers.
Hybrid school enrollments are trending up and many parents express a diverse range of reasons for enrolling their children in hybrid schools. Yet little is known about the pedagogical goals pursued by hybrid schools. We aim to help close this gap in the literature with a stated preferences experiment of hybrid school leaders’ perceptions of program success. Sixty-three school leaders participated in a survey experiment in which we randomly assigned attributes to hypothetical programs and asked school leaders to identify the most successful program. We find that hybrid school leaders consider a broad range of student outcomes when evaluating program success, including labor market outcomes, civic outcomes, and family life. Students’ religious observance produced the largest effect sizes, a reasonable finding considering that roughly two-thirds of the schools represented in our sample have some religious affiliation. We do not find evidence that test score outcomes and higher education matriculation contribute meaningfully to perceived success.
The increasing prevalence of private tutoring has received minimal scholarly attention in the United States. We use over 25 years of geocoded data on the universe of U.S. private tutoring centers to estimate the size and growth of this industry and to identify predictors of tutoring center locations. We document four important facts. First, from 1997 to 2022, the number of private tutoring centers more than tripled, from about 3,000 to 10,000, with steady growth through 2015 before a more recent plateau. Second, the number and growth of private tutoring centers is heavily concentrated in geographic areas with high income and parental education. More than half of tutoring centers are in areas in the top quintile of income. Third, even conditional on income and parental education, private tutoring centers tend to locate in areas with many Asian American families, suggesting important differences by ethnic or cultural identity in demand for such services. Fourth, we see only marginal evidence that prevalence of private tutoring centers is related to the structure of K-12 school markets, including the prevalence of private schools and charter or magnet school options. The rapid rise in high-income families’ demand for this form of private educational investment mimics phenomena observed in other spheres of education and family life, with potentially important implications for inequality in student outcomes.
Does state implementation of Education Savings Accounts (ESAs), which are voucher-like taxpayer-funded subsidies for children to attend private schools, increase tuition prices? We analyze a novel longitudinal dataset for all private schools in Iowa and Nebraska, neighboring states that adopted ESAs in the same legislative session, with Iowa’s implementation beginning first. By leveraging state and grade-level variation in eligibility, we provide new causal evidence that ESAs led Iowa private schools to increase tuition. Increases varied by the percentage of the grade eligible for ESAs. When eligibility was universal (kindergarten), private schools increased prices 21-25%, compared with 10-16% in grades with partial eligibility. In contrast, private schools did not increase tuition in pre-K, which was ineligible for ESAs. If a goal of ESAs is to extend private school access to new families, the substantial tuition increases they produce may limit access.
Many school districts consider family preferences in allocating students to schools. In theory, this approach provides traditionally disadvantaged families greater access to high-quality schools by weakening the link between residential location and school assignment. We leverage data on the school choices made by over 233,000 New York City families to examine the extent to which the city’s school choice system fulfills this promise. We find that over-subscribed and high-quality schools enroll smaller proportions of students from traditionally disadvantaged families. We explore three mechanisms to explain this inequitable distribution: application timing, neighborhood stratification, and the architecture of the choice process itself. We find that all three mechanisms have a disequalizing influence and propose several policy shifts to address this inequality.
Using a rich dataset that merges student-level school records with birth records, and leveraging three alternative identification strategies, we explore how increase in access to charter schools in twelve districts in Florida affects students remaining in traditional public schools (TPS). We consistently find that competition stemming from the opening of new charter schools improves reading—but not math—performance and it also decreases absenteeism of students who remain in the TPS. Results are modest in magnitude.
Market-based policies, especially school vouchers, are expanding rapidly and shifting students out of traditional public schools. This essay broadens, deepens, and updates prior critiques of the free market logic in five ways. First, while prior articles have pointed to some of the conditions necessary for efficient market functioning, I provide a more comprehensive list. Second, with an up-to-date literature review, I show that all of these conditions fail to hold to an unusual extent in schooling, relative to other markets. Third, because of these failures, I argue that the strongest critique of the free market approach to schooling comes from the intellectual home of markets—economics. Fourth, I show that the issues leading to inefficiency are the same ones leading to inequity. Fifth, I argue that the analysis points to specific roles for government, which go well beyond those included in new universal school voucher policies, but which are also narrower than the roles of government encompassed in traditional public education. For these reasons, the current direction of policy is off-track and apparently inconsistent with the main criteria on which we evaluate education policy and even with the values that voucher advocates themselves profess.
During the pandemic, a number of states instituted hold-harmless funding policies to protect school district financially from declining enrollments (Center for Public Education, 2021). In addition, some school choice policies have protected traditional public schools financially from declining enrollments. Together, these policies raise the question of whether competitive effects can exist in a policy environment of reduced financial pressure. Theoretically, despite the lack of financial pressure, schools could feel competitive pressure in other ways including a loss of reputation as students move to schools of choice (Epple, Romono, & Urquiola, 2017; Friedman, 1962; MacLeod & Urquiola, 2009; Urquiola, 2016). To provide insights on whether schools can improve without the threat of financial loss, we examine the Seoul school choice program which introduced autonomous private high schools (APHSs) in the context in which there is equalized funding across schools. More specifically, we examine whether competition induced by APHSs affects the achievement of students attending traditional public and private schools. The effect of APHSs is identified by exploiting plausible exogenous APHSs’ entry through the random assignment of students. We find a small and positive effect of APHS penetration on the Korean and English achievement of private school students while finding no effects for traditional public schools, which have limited ability to respond.
The extent to which pandemic-induced public school enrollment declines will persist is unclear. Student-level data from Michigan through fall 2021 yields three relevant findings. First, relative to pre-pandemic trends, fall 2021 enrollment had partially recovered for low-income, Black, and Hispanic students, but had declined further for non-low-income, White, and Asian students. Second, annual public school exit rates remained elevated for elementary students and accelerated further for middle school students. Third, public school exit is sticky and varies by chosen alternative. Only 21 percent of those who left for private schools in fall 2020 had returned by fall 2021, while 50 percent of those who left for homeschooling had returned. These findings suggest that pandemic-driven public school enrollment declines may persist, and more so among higher income families.
This paper presents new evidence on the benefits of decentralization in public education, focusing on a Chicago policy that granted school principals more control over budgeting and operations. Meta-analysis of similar policies shows a small average effect with significant variation across settings. To explain this heterogeneity, I adopt theories from public finance, contract theory and psychology that suggest that the impact of autonomy depends on motivation effects, principal objectives, and the alignment between district and school choices. In event-study models, on average, increased school-level control improved math and English passing rates by about four percentage points (0.1σ), comparable to interventions costing over $1,000 per pupil but achieved at nearly zero cost. Affected schools also see reduced principal turnover and improved school climate, indicating increased stability and effort. Deconvolution-based analysis of the distribution of true effects reveals a range from zero at the 20th percentile to a ten percentage-point increase at the 80th percentile (approximately 0.2σ). I provide design-based evidence supporting the theoretical literature: (a) High-quality principals with a track record of strong test score growth experience more positive autonomy effects – underscoring the role of local capacity and well-aligned incentives. (b) Schools with atypical student populations benefit more from autonomy and allocate resources to services tailored to their student’s specific needs – indicating that heterogeneity plays a key role.