Working Paper: NBER ID: w8873
Authors: Caroline M. Hoxby
Abstract: A school that is more productive is one that produces higher achievement in its pupils for each dollar it spends. In this paper, I comprehensively review how school choice might affect productivity. I begin by describing the importance of school productivity, then explain the economic logic that suggests that choice will affect productivity, and finish by presenting much of the available evidence on school choice and school productivity. The most intriguing evidence comes from three important, recent choice reforms: vouchers in Milwaukee, charter schools in Michigan, and charter schools in Arizona. I show that public school students' achievement rose significantly and rapidly in response to competition, under each of the three reforms. Public school spending was unaffected, so the productivity of public schools rose, dramatically in the case in Milwaukee.
Keywords: school choice; school productivity; competition; education reform
JEL Codes: I2; H0; J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| School choice (I21) | Increased productivity in public schools (I21) |
| Less productive schools losing students to more productive ones (D29) | Incentivized improvement in performance (J33) |
| Competitive environment (L13) | Raise overall productivity of schools (I21) |
| Improving school conduct (I28) | Substantial increases in productivity (O49) |
| School choice (I21) | Higher school productivity than current levels (D29) |