Working Paper: NBER ID: w25070
Authors: Matthew Ridley; Camille Terrier
Abstract: The fiscal and educational consequences of charter expansion for non-charter students are central issues in the debate over charter schools. Do charter schools drain resources and high-achieving peers from non-charter schools? This paper answers these questions using an empirical strategy that exploits a 2011 reform that lifted caps on charter schools for underperforming districts in Massachusetts. We use complementary synthetic control instrumental variables (IV-SC) and differences-in-differences instrumental variables (IV-DiD) estimators. The results suggest greater charter attendance increases per-pupil expenditures in traditional public schools and induces them to shift expenditure from support services to instruction and salaries. At the same time, charter expansion has a small positive effect on non-charter students’ achievement.
Keywords: No keywords provided
JEL Codes: C36; H23; H75; I21; I22; I28
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Increasing charter school attendance (I28) | Increase in per-pupil expenditures in traditional public schools (H52) |
| Increase in per-pupil expenditures in traditional public schools (H52) | Increase in per-pupil expenditures on instruction (H52) |
| Increase in per-pupil expenditures in traditional public schools (H52) | Increase in per-pupil expenditures on salaries (H52) |
| Increasing charter school attendance (I28) | Decrease in expenditures on support services (H53) |
| Charter expansion (H19) | Small positive effect on noncharter students' achievement (I24) |