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Markets (vouchers, choice, for-profits, vendors)

Sarah A. Cordes, Agustina Laurito.

In this paper we estimate the effect of charter schools on the diversity of nearby traditional public schools (TPSs) and neighborhoods in New York City. We employ a difference-in-differences approach that exploits the differences in the expansion of the charter sector between grades in the same school. This approach allows us to isolate the effect of charter schools from other neighborhood demographic changes. Our results show small positive effects of charter school expansion on TPS diversity as measured by the entropy score. This change is explained by small increases in the number of White students attending nearby TPSs and larger reductions in the number of Black and Hispanic students in these schools. We also find descriptive evidence that while both neighborhoods and TPSs are slightly more diverse following charter school expansion, schools are changing faster than their surrounding neighborhoods.

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Douglas N. Harris, Feng Chen.

We study the combined effects of charter schools, and their various mechanisms, on a national level and across multiple outcomes. Using difference-in-differences and fixed effects methods, we find that charter entry (above 10 percent market share) increases high school graduation rate in geographic districts by about 2-4 percentage points and increases test scores by 0.06-0.16 standard deviations. Charter effects peak with 5-15 percent charter market share. Also, total effects are comprised not only of participant and competitive effects, but also the charter-induced closure of low-performing traditional public schools. The analysis addresses potential endogeneity of charter school location and timing.

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Sarah R. Cohodes, Sean P. Corcoran, Jennifer L. Jennings, Carolyn Sattin-Bajaj.

This paper reports the results of a large, school-level randomized controlled trial evaluating a set of three informational interventions for young people choosing high schools in 473 middle schools, serving over 115,000 8th graders. The interventions differed in their level of customization to the student and their mode of delivery (paper or online); all treated schools received identical materials to scaffold the decision-making process. Every intervention reduced likelihood of application to and enrollment in schools with graduation rates below the city median (75 percent). An important channel is their effect on reducing nonoptimal first choice application strategies. Providing a simplified, middle-school specific list of relatively high graduation rate schools had the largest impacts, causing students to enroll in high schools with 1.5-percentage point higher graduation rates. Providing the same information online, however, did not alter students’ choices or enrollment. This appears to be due to low utilization. Online interventions with individual customization, including a recommendation tool and search engine, induced students to enroll in high schools with 1-percentage point higher graduation rates, but with more variance in impact. Together, these results show that successful informational interventions must generate engagement with the material, and this is possible through multiple channels.

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Riley Acton.

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.

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Yujie Sude, Patrick J. Wolf.

Private school choice policies have been enacted and expanded across the United States since the 1990s. By January 2021, 30 states plus the District of Columbia and Puerto Rico hosted 67 distinct private school choice policies. Why have some states adopted and expanded this education reform while others have demurred? Which states are more likely to adopt specific types of private school choice initiatives in the coming years? We present the results of an exploratory empirical analysis examining which state-level political, economic, and educational factors predict past policy decisions regarding the enactment and expansion of private school choice in 49 states from 2000 to 2016. The results from our most preferred statistical model further predict which states are more and less likely to take action towards such policies in subsequent years. The political factors involving Republican control of the governorship and legislature, prevalence of minority students in the K-12 population, and share of private school enrollment in the state prove to be highly predictive factors in school choice adoption. The economic factor of a comparatively low state per-capita GDP also consistently predicts school choice policy adoption in our models.

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David M. Houston, Jeffrey R. Henig.

We examine the effects of disseminating academic performance data—either status, growth, or both—on parents’ school choices and their implications for racial, ethnic, and economic segregation. We conduct an online survey experiment featuring a nationally representative sample of parents and caretakers of children age 0-12. Participants choose between three randomly sampled elementary schools drawn from the same school district. Only growth information—alone and not in concert with status information—has clear and consistent desegregating consequences. Because states that include growth in their school accountability systems have generally done so as a supplement to and not a replacement for status, there is little reason to expect that this development will influence choice behavior in a manner that meaningfully reduces school segregation.

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Sarah R. Cohodes, James J. Feigenbaum.

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.

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Tareena Musaddiq, Kevin Stange, Andrew Bacher-Hicks, Joshua Goodman.

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.

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Plamen Nikolov, Steve Yeh.

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.

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Ying Shi, John D. Singleton.

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.

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