Educational vouchers: Effectiveness,choice, and costs

Most of the policy discussion on the effects of educational vouchers has been premised on theoretical or ideological positions rather than evidence. This article analyzes a substantial body of recent empirical evidence on achievement differences between public and private schools; on who chooses and its probable impact on educational equity; and on the comparative costs of public and private schools and an overall voucher system. The findings indicate that: (1) results among numerous studies suggest no difference or only a slight advantage for private schools over public schools in student achievement for a given student, but evidence of substantially higher rates of graduation, college attendance, and college graduation for Catholic high school students; (2) evidence is consistent that educational choice leads to greater socioeconomic (SES) and racial segregation of students; and (3) evidence does not support the contention that costs of private schools are considerably lower than those of public schools, but the costs of an overall voucher infrastructure appear to exceed those of the present system.     

Dynamic selection effects in means‐tested,urban school voucher programs

Much of the controversy surrounding school vouchers, and privatization schemes generally, stems from concerns about social stratification. This paper identifies the form and magnitude of selection effects in a means‐tested New York City voucher program. It compares students who applied for vouchers, with the eligible population of public‐school students; those who initially used vouchers, with those who declined them; and those who remained in private schools, with those who eventually returned to public schools. Differences along the lines of ethnicity, residential mobility, mother's education, and income are observed. In addition, specific aspects of a child's education—parental satisfaction, school uniform requirements, and larger class sizes—all increased the length of time voucher students remained in private schools. Throughout the program's life span, however, the largest and most consistent effects revolved around families' religious identity and practices. © 2004 by the Association for Public Policy Analysis and Management.     

Private Schools and the Parents that Choose Them: Empirical Evidence from the Danish School Voucher System

Research on the effect of school choice on student performance has generally been based on small-scale experiments or comparisons of Catholic and public schools in the United States. Recent studies indicate, however, that the market competition stemming from school vouchers does not affect all private schools equally. This study makes use of individual-level register data on the performance of more than 30,000 students in Denmark, where private schools have been voucher-financed for more than 100 years, while public schools are governed and financed by the politico-administrative system. Using an instrumental variable model to exclude selection effects, the results show no significant average effect of private schooling on final examination scores. However, a multilevel model shows that private schools of high socio-economic status perform better than similar public schools, while private schools of low socio-economic status under-perform – even for individual students with high socio-economic status. This indicates that the institutional setting of a voucher system is not enough to raise educational performance in general, arguably because some parents choose schools on the basis of non-academic criteria.     

Why Don't Housing Choice Voucher Recipients Live Near Better Schools? Insights from Big Data

Housing choice vouchers provide low‐income households with additional income to spend on rental housing in the private market. The assistance vouchers provide is substantial, offering the potential to dramatically expand the neighborhoods—and associated public schools—that low‐income households can reach. However, existing research on the program suggests that housing choice voucher holders live in neighborhoods with schools that are no better than those accessible to other households with similar incomes. Households, in other words, do not seem to spend the additional income provided by the voucher to access better schools. In this analysis we rely on a large‐scale administrative data set to explore why voucher households typically do not live near to better schools, as measured by school‐level proficiency rates. We combine confidential administrative data from the Department of Housing and Urban Development on 1.4 million housing choice voucher holders in 15 states, with school‐level data from 5,841 different school districts, to examine why the average housing voucher holder does not live near to higher‐performing schools than otherwise similar households without vouchers. Specifically, we use the large‐scale administrative data set to test whether voucher holders living in areas with good schools nearby and slack housing markets move toward better schools when schools become salient for them—that is, when their oldest child becomes school eligible. We take advantage of the thick sample of households with young children provided through our administrative data to implement both a household fixed effects and a regression discontinuity design. Together these analyses shed light on whether voucher households are more likely to move toward better schools when schools are most relevant, and how market conditions shape that response. We find that families with vouchers are more likely to move toward a better school in the year before their oldest child meets the eligibility cutoff for kindergarten, suggesting salience matters. Further, the magnitude of the effect is larger in metropolitan areas with a relatively high share of affordable rental units located near high‐performing schools and in neighborhoods in close proximity to higher‐performing schools. Results suggest that, if given the appropriate information and opportunities, more voucher families would move to better schools when their children reach school age.     

Vouchers and voting: An initial estimate based on the median voter model

One of the major concerns associated with school voucher proposals is that they will only benefit those who leave public schools in favor of private schools. The children left behind in public schools are expected to necessarily be made worse off by such policies. This paper provides evidence suggesting that children left behind in public schools will also benefit. The available evidence suggests that, after a voucher plan, voter support for public schools will rise enough to increase the human capital of public school students, despite the presence of negative peer group effects.     

Peer effects in private and public schools across countries

Many argue that the composition of a school or classroom‐that is, the characteristics of the students themselves‐affect the educational attainment of an individual student. This influence of the students in a classroom is often referred to as a peer effect. There have been few systematic studies that empirically examine the peer effect in the educational process. In this research, we examine the peer effect with a unique data set that includes individual student achievement scores and comprehensive characteristics of the students' families, teachers, other school characteristics, and peers for five countries. The data allow an examination of peer effects in both private and public schools in all countries. Our analysis indicates that peer effects are a significant determinant of educational achievement; the effects of peers appear to be greater for low‐ability students than for high‐ability students. The finding is robust across countries but not robust across school type. © 2000 by the Association for Public Policy Analysis and Management.     

School Vouchers and Student Outcomes: Experimental Evidence from Washington,DC

School vouchers are the most contentious form of parental school choice. Vouchers provide government funds that parents can use to send their children to private schools of their choice. Here we examine the empirical question of whether or not a school voucher program in Washington, DC, affected achievement or the rate of high school graduation for participating students. The District of Columbia Opportunity Scholarship Program (OSP) has operated in the nation's capital since 2004, funded by a federal government appropriation. Because the program was oversubscribed in its early years of operation, and vouchers were awarded by lottery, we were able to use the “gold standard” evaluation method of a randomized experiment to determine what impacts the OSP had on student outcomes. Our analysis revealed compelling evidence that the DC voucher program had a positive impact on high school graduation rates, suggestive evidence that the program increased reading achievement, and no evidence that it affected math achievement. We discuss the implications of these findings in light of recent policy developments including the reauthorization of the OSP and the enactment or expansion of more than a dozen school voucher or voucher‐type programs throughout the United States in 2011 and 2012.     

Is Charter School Competition in California Improving the Performance of Traditional Public Schools?

A premise of charter school initiatives has been that these schools have direct benefits for the students attending them and indirect benefits for other students by creating competition for traditional public schools to improve their performance. This study uses a two-pronged approach to assess whether California charter schools are having indirect effects on students in traditional public schools. First, we examine how traditional public school principals react to the introduction of charter schools. Second, we assess whether competition from nearby charters is affecting student achievement outcomes for students that remain in traditional public schools. The survey results show that traditional public school principals felt little competitive pressure from charters. Similarly, the student achievement analysis shows that charter competition was not improving the performance of traditional public schools. These results suggest that California charter schools are having little effect on the climate of traditional public schools.     

Which Bets Paid Off? Early Findings on the Impact of Private Management and K‐8 Conversion Reforms on the Achievement of Philadelphia Students

This article reports initial findings from a study of middle grades educational reforms in Philadelphia. We use multilevel change models to analyze the impact on student mathematics achievement of privatization through the use of educational management organizations (EMOs), taking account of the structural reforms (creation of new K‐8 schools to replace selected middle schools) occurring simultaneously within the district. Overall, the longitudinal mathematics achievement gains for students in EMO‐managed schools were not larger than those for students in schools managed by the district. Non‐Edison EMO schools actually performed worse than district‐managed schools. With the exception of one older K‐8 school in one cohort, Edison schools did not significantly outperform district‐managed counterparts. Students in long‐established K‐8 schools generally outgained students in middle schools, but gains were not as large in newly‐established K‐8 schools. Across all types of schools, the second cohort of students obtained greater gains than did the first.     

The Impact of Providing Vision Screening and Free Eyeglasses on Academic Outcomes: Evidence from a Randomized Trial in Title I Elementary Schools in Florida

More than 20 percent of all school‐aged children in the United States have vision problems, and low‐income and minority children are disproportionately likely to have unmet vision care needs. Vision screening is common in U.S. schools, but it remains an open question whether screening alone is sufficient to improve student outcomes. We implemented a multi‐armed randomized controlled trial (RCT) to evaluate the impact of vision screening, and of vision screening accompanied by eye exams and eyeglasses, provided by a non‐profit organization to Title I elementary schools in three large central Florida school districts. We find that providing additional/enhanced screening alone is generally insufficient to improve student achievement in math and reading. In contrast, providing screening along with free eye exams and free eyeglasses to students with vision problems improved student achievement as measured by standardized test scores. We find, averaging over all students (including those without vision problems), that this more comprehensive intervention increased the probability of passing the Florida Comprehensive Achievement Tests (FCATs) in reading and math by approximately 2.0 percentage points. We also present evidence that indicates that this impact fades out over time, indicating that follow‐up actions after the intervention may be necessary to sustain these estimated achievement gains.     

Patrolling Public Schools: The Impact of Funding for School Police on Student Discipline and Long‐term Education Outcomes

As police officers have become increasingly common in U.S. public schools, their role in school discipline has often expanded. While there is growing public debate about the consequences of police presence in schools, there is scant evidence of the impact of police on student discipline and academic outcomes. This paper provides the first quasi‐experimental estimate of funding for school police on student outcomes, leveraging variation in federal Community Oriented Policing Services (COPS) grants. Exploiting detailed data on over 2.5 million students in Texas, I find that federal grants for police in schools increase middle school discipline rates by 6 percent. The rise in discipline is driven by sanctions for low‐level offenses or school code of conduct violations. Further, I find that Black students experience the largest increases in discipline. I also find that exposure to a three‐year federal grant for school police is associated with a 2.5 percent decrease in high school graduation rates and a 4 percent decrease in college enrollment rates.     

Competition in the sandbox: A test of the effects of preschool competition on educational outcomes

The emergence of publicly subsidized preschool raises important policy questions about the role of market forces and, in places where competition to provide these services exists, presents a setting in which the effects of competition on educational outcomes can be tested. We test neo‐institutional hypotheses concerning the effects of competition to provide publicly‐funded prekindergarten (pre‐k) services on the performance of public schools and private organizations. We use student‐level data collected over a five‐year period on a large sample of children who attended publicly subsidized prekindergarten in Georgia. Overall, we find that more competition improves third grade reading and math test scores but does not significantly affect retention or school readiness ratings during elementary school. Not all children are equally affected by competition; for example, greater competition significantly decreases the likelihood of retention for children of the working poor. Contrary to the expectations of some theorists, both public schools and private organizations respond to increased competition in ways that improve test scores but not retention. However, children attending private prekindergarten have higher language arts scores and lower retention across the range of competition when compared with children who attended public school pre‐k. © 2006 by the Association for Public Policy Analysis and Management     

Local Government Responses to Fiscal Stress: Evidence from the Public Education Sector

This article investigates local government responses to fiscal stress through the lens of the K–12 public education sector, examining two major policy options available to school districts for managing fiscal hardship: (1) cutting costs, especially through layoffs, and (2) raising revenues locally through voter referenda. The article employs district‐level administrative and survey data from California and Indiana to examine whether school districts exhibit features of a rational or natural system—in which their behaviors largely reflect fiscal pressures only—or whether they exhibit features of an open system in which nonfinancial factors also shape responses. In Indiana, district fiscal characteristics explain differences in cost‐cutting and revenue‐raising behaviors; there is little empirical evidence that school districts exhibit features of an open system. In California, both fiscal and environmental attributes, including poverty characteristics, average student achievement levels, and the enrollment of English learner students, explain school district behaviors.     

Status versus growth: The distributional effects of school accountability policies

Although the federal No Child Left Behind program judges the effectiveness of schools based on their students' achievement status, many policy analysts argue that schools should be measured, instead, by their students' achievement growth. Using a 10‐year student‐level panel data set from North Carolina, we examine how school‐specific pressure associated with status and growth approaches to school accountability affect student achievement at different points in the prior‐year achievement distribution. Achievement gains for students below the proficiency cut point emerge in schools failing either type of accountability standard, with the effects clearer for math than for reading. In contrast to prior research highlighting the possibility of educational triage, we find little or no evidence that failing schools in North Carolina ignore the students far below proficiency under either approach. Importantly, we find that the status, but not the growth, approach reduces the reading achievement of higher performing students. Our analysis suggests that the distributional effects of accountability pressure depend not only on the type of pressure for which schools are held accountable (status or growth), but also the tested subject. © 2010 by the Association for Public Policy Analysis and Management.     

Improving the Implementation and Effectiveness of Out‐of‐School‐Time Tutoring

School districts are spending millions on tutoring outside regular school day hours for economically and academically disadvantaged students in need of extra academic assistance. Under No Child Left Behind (NCLB), parents of children in persistently low‐performing schools were allowed to choose their child's tutoring provider, and together with school districts, they were also primarily responsible for holding providers in the private market accountable for performance. We present results from a multisite, mixed‐method longitudinal study of the impact of out‐of‐school time (OST) tutoring on student reading and mathematics achievement that link provider attributes and policy and program administration variables to tutoring program effectiveness. We find that many students are not getting enough hours of high‐quality, differentiated instruction to produce significant gains in their learning, in part because of high hourly rates charged by providers for tutoring. We identify strategies and policy levers that school districts can use to improve OST tutoring policy design and launch improved programs as waivers from NCLB are granted.     

The Productivity Costs of Inefficient Hiring Practices: Evidence From Late Teacher Hiring

We use matched employee–employer records from the teacher labor market to explore the effects of late teacher hiring on student achievement. Hiring teachers after the school year starts reduces student achievement by 0.042 SD in mathematics and 0.026 SD in reading. This reflects, in part, a temporary disruption effect in the first year. In mathematics, but not in reading, late‐hired teachers remain persistently less effective, evidence of negative selection in the teacher labor market. Late hiring concentrates in schools that disproportionately serve disadvantaged student populations, contributing to challenges in ensuring an equitable distribution of educational resources for all students.     

How Local Economic Conditions Affect School Finances,Teacher Quality,and Student Achievement: Evidence from the Texas Shale Boom

Whether improved local economic conditions lead to better student outcomes is theoretically ambiguous and will depend on how schools use additional revenues and how students and teachers respond to rising private sector wages. The Texas boom in shale oil and gas drilling, with its large and localized effects on wages and the tax base, provides a unique opportunity to address this question that spans the areas of education, labor markets, and public finance. An empirical approach using variation in shale geology across school districts shows that the boom reduced test scores and student attendance, despite tripling the local tax base and creating a revenue windfall. Schools spent additional revenue on capital projects and debt service, but not on teachers. As the gap between teacher wages and private sector wages grew, so did teacher turnover and the percentage of inexperienced teachers, which helps explain the decline in student achievement. Changes in student composition did not account for the achievement decline but instead helped to moderate it. The findings illustrate the potential value of using revenue growth to retain teachers in times of rising private sector wages.     

The effect of attending full‐day kindergarten on English learner students

A significant and growing English learner (EL) population attends public schools in the United States. Evidence suggests they are at a disadvantage when entering school and their achievement lags behind non‐EL students. Some educators have promoted full‐day kindergarten programs as especially helpful for EL students. We take advantage of the large EL population and variation in full‐day kindergarten implementation in the Los Angeles Unified School District to examine the impact of full‐day kindergarten on academic achievement, retention, and English language fluency using difference‐in‐differences models. We do not find signficant effects of full‐day kindergarten on most academic outcomes and English fluency through second grade. However, we find that EL students attending full‐day kindergarten were 5 percentage points less likely to be retained before second grade and there are differential effects for several outcomes by student and school characteristics. © 2011 by the Association for Public Policy Analysis and Management.     

The Role of Management and Representation in Improving Performance of Disadvantaged Students: An Application of Bum Phillips's “Don Shula Rule”1

Scholars and practitioners within the U.S. education system have focused considerable attention on developing new programs aimed at raising educational achievement for disadvantaged students. New programs are only one way to improve student performance, however; recent work in public administration suggests that public management and implementation practices might also have a large impact on student performance. Existing research shows that managerial networking, managerial quality, and effective personnel management can significantly improve the quality of the education received by disadvantaged students. Additional work highlights the contribution of representative bureaucracy. Because these research agendas have targeted the public administration literature rather than the education policy literature, this article seeks to bring this research back to education policy. Using data from several hundred Texas public school districts, spanning 1995 to 2002, and focusing on disadvantaged student performance (Latinos, blacks, and low‐income students), this article illustrates how both management and processes to enhance the representativeness of teaching faculty produce benefits for disadvantaged students.