Do charter schools crowd out private school enrollment? Evidence from Michigan |
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| Institution: | 1. Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045, United States;2. Columbia University, 525 W. 120th Street, New York, NY 10027, United States;3. Independent Budget Office, United States;1. Department of Economics, University of Houston, Houston, TX 77204, USA;2. Department of Management and Marketing, Texas A&M, Prairie View, TX 77446, USA;3. Department of Economics, University of Bristol, Bristol, BS 1TN, United Kingdom;1. Royal Institute of Technology/VTI, Stockholm, Sweden;2. Department of Economics-KULeuven, Naamse Straat 69, 3000 Leuven, Belgium and CTS-Royal Institute of Technology, Stockholm, Sweden;1. Department of Management and Technology and CRIOS, Bocconi University, Via Sarfatti 25, I-20136 Milan, Italy;2. Department of Architecture, Built Environment and Construction Engineering, Politecnico di Milano, Piazza Leonardo da Vinci 32, I-20133 Milan, Italy;1. VU University, Department of Economics, Boelelaan 1105, 1081 HV Amsterdam, The Netherlands\n;2. University of Groningen, Department of Economic Geography, Landleven 1, 9747 AD Groningen, The Netherlands |
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| Abstract: | Charter schools have been one of the most important dimensions of recent school reform measures in the United States. Though there have been numerous studies on the effects of charter schools, these have mostly been confined to analyzing their effects on student achievement, student demographic composition, parental satisfaction, and the competitive effects on traditional public schools. This study departs from the existing literature by investigating the effect of charter schools on enrollment in private schools. To investigate this issue empirically, we focus on the state of Michigan where there was a significant spread of charter schools in the nineties. Using data on private school enrollment from biennial NCES private school surveys, and using a fixed effects as well as an instrumental variables strategy that exploits exogenous variation from Michigan charter law, we investigate the effect of charter school penetration on private school enrollment. We do not find any causal evidence that charter schools led to a decline in enrollment in the private schools. Further, we do not find evidence that enrollments in Catholic or other religious schools were affected differently from those in non-religious private schools. Our results are robust to a variety of sensitivity checks. |
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