Slide 1

Charter School Competition: An Examination of Michigan Anthony Galston Economics Student

Slide 2

Charter Schools Public school started by an individual or group Specific educational objectives Exempt from non-federal laws that restrict charter schools from flexible management Not exempt from equal rights, access, discrimination

Slide 3

Michigan Charter Schools Program began in 1994-95 with 12 schools Today: 375 charter schools in 298 buildings Authorizing Agencies: State public universities (70%) The Cap Pre-K through 12 State funding is about $7000 per child

Slide 4

Question Is traditional public school performance impacted by surrounding charter schools?

Slide 5

Theories Competition Traditional public schools changing teaching strategies Peer Effects Sorting Cream skimming

Slide 6

Literature Review Hoxby (National Bureau of Economic Research, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

Slide 7

Hoxby (2003) A B

Slide 8

Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

Slide 9

Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

Slide 10

Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

Slide 11

Literature Review Hoxby (Swedish Economic Policy Review, 2003) Bettinger (Economics of Education Review, 2005) Bifulco & Ladd (Education Finance and Policy, 2006) Sass (Education Finance and Policy, 2006) Booker, et al. (Journal of Urban Economics, 2008)

Slide 12

Why This Is Different Number of competitors Size of competitors Distance among competitors Long panel data School Level

Slide 13

The Data Panel data set: 2000-01 to 2011-12 public school data in Michigan School level data ArcMap 10

Slide 14

GIS ArcMap 10

Slide 15

The Models Fixed Effects School-Level Value-Added Education Production Function

Slide 16

MEAP Examination Michigan Education Assessment Program Began in the 1970s Grades 3 through 9 Reading, Math, Writing (4 & 7), Science (5 & 8), Social Studies (6 & 9)

Slide 17

Slide 18

Dependent Variables Advanced MEAP Math percentage of students that scored advanced in mathematics Advanced MEAP Reading percentage of students that scored advanced in reading Proficient MEAP Math percentage of students that scored at least proficient in mathematics Proficient MEAP Reading percentage of students that scored at least proficient in reading

Slide 19

Independent Variables Measure of Competition Competition Index measures the amount of competition from charter schools within n miles Misra, Grimes & Rogers (Economics of Education Review, 2012)

Slide 20

Independent Variables

Slide 21

Slide 22

Main Results Fixed Effects Negative impact on nearly all levels School-Level Value-Added Education Production Function No significant impact

Slide 23

FIXED EFFECTS

Slide 24

Slide 25

Slide 26

SCHOOL-LEVEL VALUE-ADDED EDUCATION PRODUCTION FUNCTION

Slide 27

Slide 28

Slide 29

Extreme Bound Analysis Proficient and Higher: Reading: 10 miles: [-0.150, -0.006] 15 miles: [-0.155, -0.006] 20 miles: [-0.156, -0.006] Proficient and Higher: Mathematics: 10 miles: [-0.089, 0.004] 15 miles: [-0.091, 0.005] 20 miles: [-0.091, 0.006] Leamer (1983)

Slide 30

Extreme Bound Analysis Advanced: Reading: 10 miles: [-0.254, -4.01e-4] 15 miles: [-0.256, -5.60e-4] 20 miles: [-0.255, -8.13e-4] Advanced: Mathematics: 10 miles: [-0.198, -0.006] 15 miles: [-0.198, -0.005] 20 miles: [-0.197, -0.005] Leamer (1983)

Slide 31

Conclusions Competition Little significant evidence to suggest that charter schools are effecting traditional public schools Leamer Extreme Bound Analysis suggests if charter schools have any effect, its negative Cream-skimming Fixed effects suggests this may occur Leamer Extreme Bound Analysis suggest this is occurring

Slide 32

APPENDIX

Slide 33

Slide 34