Disinvesting in the administrative capacity for public action

Recurring cutbacks in the public sector have received extensiveattention. Most of the emphasis has been on how to adjust to declinein support for public programs. Cutback Management andcon-tracting-out are examples of this approach. This article focuseson the negative consequence of cutbacks. It suggests that inadequateattention is being given to the decrease in the capacity of agenciesto act. An administrative disinvestment is occurring in much the sameway as it has for roads, bridges and other parts of our public infrastructure. Now, we are disinvesting in another critical social asset--our public bureau-cracies. The nature and implictions ofadminis-trative disinvestment are explord.     

School choice,racial segregation,and test‐score gaps: Evidence from North Carolina's charter school program*

Using panel data that track individual students from year to year, we examine the effects of charter schools in North Carolina on racial segregation and black‐white test score gaps. We find that North Carolina's system of charter schools has increased the racial isolation of both black and white students, and has widened the achievement gap. Moreover, the relatively large negative effects of charter schools on the achievement of black students is driven by students who transfer into charter schools that are more racially isolated than the schools they have left. Our analysis of charter school choices suggests that asymmetric preferences of black and white charter school students (and their families) for schools of different racial compositions help to explain why there are so few racially balanced charter schools. © 2006 by the Association for Public Policy Analysis and Management.