Tag: education research

Attention Students: Choose a Charter, Receive $5,700 Less Per Year

Traditional educators frequently claim that public charter schools are failing, even when evidence indicates that they perform no worse than traditional institutions on student test scores. This logic fails to recognize costs, which are paramount to educational success, primarily because wasted funds could otherwise be efficiently allocated towards further academic achievement. If students are receiving less public funding in charters, then choice schools are significantly outperforming residentially assigned institutions.

I just released a study with Patrick Wolf, Larry Maloney, and Jay May examining disparities in funding between students in charters and traditional public schools in 15 metropolitan areas in the 2013–14 school year. As shown in figure 1 from the report, students enrolled in a public charter school receive substantially less funding than those in traditional public schools in all but one location. In fact, we find that students in charter schools receive about $5,721 less in total annual funding than their peers in district schools.

Source: Wolf, Maloney, May, and DeAngelis (2017). “Charter School Funding: Inequity in the City.” School Choice Demonstration Project, Department of Education Reform, University of Arkansas.

Critics of this type of evaluation often argue that funding disparities are due to differences in types of students. After all, traditional public schools (TPS) may have a larger proportion of students requiring additional educational resources. While the TPS in our study do enroll more special needs children, we find that these differences do not fully explain the funding gap between traditional public schools and public charter schools.

Funding inequity across the two sectors has only gotten worse over time. Eleven years after the research team first revealed that public charter schools receive less funding than their traditional public schools peers, the funding disparity had grown by about 79% in eight cities.

Should these results surprise us? If you could force your customers to buy your product at a high price, would you need to reduce expenses? Perhaps more importantly, if your customers could not leave, how would you know which costs to cut? The traditional system of schooling makes it impossible to allocate resources efficiently, even if local public school leaders are highly competent and benevolent.

Nonetheless, these findings are important for decision-makers to consider, especially if they care about improving student outcomes through efficiently allocating educational funding. Just imagine what would happen to the education sector if families could choose which institution to send their funds to. Schools would be rewarded for quality and efficiency, freeing up the resources necessary to improve the lives of millions of children around the nation.

The Problems with Centrally Planning School Choice

Even strong proponents of private school choice programs often disagree on who ought to have access. Many people that view private school choice as a means for social justice argue that programs should be targeted to the least-advantaged members of society. Alternatively, I have claimed that a universally accessible program could benefit the least-advantaged in society more than anyone because of amplified market entry. Other education scholars argue that program access should be determined based on the empirical evidence on student test scores. While we gain important information from scientific experiments, we should not make program access decisions based on them.

Experiments Can Only Tell Us about Groups

As a social scientist performing quantitative analyses on school choice programs across the United States, I have realized one thing that is particularly frustrating. Even the strongest quantitative scientific experiments do not tell us much about the individual children that we are studying. Since our statistical results rely on the law of large numbers, there is no way around this issue. We must group the people we are studying together in order to calculate a statistically significant treatment effect.

Sure, we can perform subgroup analyses to determine if there are heterogeneous effects for different types of individuals. Nevertheless, these subgroup analyses suffer from the same systemic flaw; they rely on grouping people to calculate average effects. While subgroup analyses give us important information about groups of people, they are often erroneously used by decision-makers to determine which specific children in society ought to have access to school choice programs. A large positive result for advantaged members of society and an insignificant result for the disadvantaged may lead one to solely support access for the advantaged.

The problem with this decision is that it assumes all members within the subgroup will respond to the treatment in the same way. This is far from true. An average overall result of “zero” for disadvantaged children likely means that the program worked for some of them and did not work for others. Why prevent disadvantaged students from accessing a program simply because they looked like those that did not benefit previously?