School Choice or Best Systems Part 3

Average 41 41.

Private vs. Public School Achievement But do these effects of private schools remain after controlling for family income, parents' level of education, and other possible confounding factors? Researchers seeking answers face major obstacles. The private school sector is small and relatively heterogeneous compared to the public sector. Private schools vary greatly by size, spending level, curriculum, and student demographics, which makes it less likely that studies will yield clear, consistent results. Private and public schools in different states also use different achievement examinations, which adds to the difficulty of making comparisons. In addition, differences in family motivation and background rather than school effectiveness may cause achievement differences between the two sectors.

All of these methodological difficulties were apparent in a study released in 2006 by the U.S. Department of Education purporting to show no positive effect of private schools on academic achievement .7 In an extensive critique, In an extensive critique,8 Paul Peterson and Elena Llaudet pointed out the study's fallacious drawing of causal inferences from single-point-in-time achievement scores; the underestimation of the prevalence of disadvantages such as poverty, limited English proficiency, and special needs in private schools; and the overestimation of these characteristics in public schools. The study also incorrectly controlled for differences in student absenteeism and the availability of books and computers in the home, which are factors that vary by school sector. These incorrect controls further biased its results. Paul Peterson and Elena Llaudet pointed out the study's fallacious drawing of causal inferences from single-point-in-time achievement scores; the underestimation of the prevalence of disadvantages such as poverty, limited English proficiency, and special needs in private schools; and the overestimation of these characteristics in public schools. The study also incorrectly controlled for differences in student absenteeism and the availability of books and computers in the home, which are factors that vary by school sector. These incorrect controls further biased its results.

After fixing such flaws, Peterson and Llaudet found that Catholic, Lutheran, Evangelical Protestant, and independent school fourth-and eighth-grade students all scored higher on National a.s.sessment of Educational Progress tests in mathematics and in reading than did their public school counterparts after appropriate statistical controls were used. Peterson and Llaudet, however, were careful to avoid any firm causal inferences from single-point-in-time achievement scores from small samples.

An earlier study by John Chubb and Terry Moe,9 using a national data sample, found that private secondary school students learned more than those in public schools, after controlling for socioeconomic status and other possible confounders. They attributed the effect of private schools primarily to greater "school autonomy," a subject addressed below. using a national data sample, found that private secondary school students learned more than those in public schools, after controlling for socioeconomic status and other possible confounders. They attributed the effect of private schools primarily to greater "school autonomy," a subject addressed below.

The most comprehensive comparison of public and private school achievement shows that private schools excelled at the two grade levels tested in mathematics, reading, science, and writing in the National a.s.sessment of Educational Progress. The differences were larger in all subjects in eighth than in fourth grade, which apparently shows the private school advantage grows with additional years of schooling.10 As indicated in As indicated in Table 4-3 Table 4-3, minority students achieved more in private schools than their corresponding groups did in public schools. Students in private schools whose parents had not completed high school had the greatest gains, although private school students at all levels of parent education outscored their public school counterparts.

Table 4-3 PRIVATE SCHOOL PERFORMANCE ADVANTAGE FOR FOUR ETHNIC GROUPS AND PARENTS' HIGHEST LEVELS OF EDUCATION PRIVATE SCHOOL PERFORMANCE ADVANTAGE FOR FOUR ETHNIC GROUPS AND PARENTS' HIGHEST LEVELS OF EDUCATION SOURCE: Adapted from Paul E. Peterson, "Thorough and Efficient Private and Public Schools" in Courting Failure, Courting Failure, ed. Erik A. Ha.n.u.shek (Stanford, CA: Stanford University Education Next Press, 2006), p. 221. ed. Erik A. Ha.n.u.shek (Stanford, CA: Stanford University Education Next Press, 2006), p. 221.

Ethnic Group Private School Advantage in Achievement Score Points Hispanic 10 10.

Black 5 5.

White 5 5.

Asian 4 4.

Parent education .

Less than high school Less than high school 18 18.

Graduated from high school 15 15.

Some education after high school 11 11.

Graduated from college 16 16.

Catholic vs. Public School Achievement Because Catholic schools are much more numerous and relatively more h.o.m.ogeneous than other groups of sectarian and independent private schools, several rigorous studies have contrasted them with public schools. James Coleman and Thomas Hoffer, for example, responded to criticism of their earlier work by a.n.a.lyzing student gains and taking student socioeconomic status into better account.11 They again found a significant and positive effect of Catholic schools. They again found a significant and positive effect of Catholic schools.

More recently, Anthony Bryk, Valerie Lee, and Paul Holland employed state-of-the-art research methods on achievement gains data and found that Catholic schools significantly outpaced public schools.12 From a detailed a.n.a.lysis of longer-term effects, Derek Neal concluded that Catholic schooling significantly increased high school and college graduation rates and later wages among urban minorities; it offered modest gains to urban whites and had a "negligible" effect on suburban students. From a detailed a.n.a.lysis of longer-term effects, Derek Neal concluded that Catholic schooling significantly increased high school and college graduation rates and later wages among urban minorities; it offered modest gains to urban whites and had a "negligible" effect on suburban students.13 In a review of many studies, Patrick McEwan14 concluded that Catholic elementary schools have modest positive effects on poor minority students in grades 2-5 and mixed effects on other students and grades. But, "[i]n contrast, the evidence on attainment is strikingly consistent, indicating that Catholic schools increase the probability of high school completion and college attendance, particularly for minorities in urban areas." Eide, Goldhaber, and Showalter concluded that Catholic elementary schools have modest positive effects on poor minority students in grades 2-5 and mixed effects on other students and grades. But, "[i]n contrast, the evidence on attainment is strikingly consistent, indicating that Catholic schools increase the probability of high school completion and college attendance, particularly for minorities in urban areas." Eide, Goldhaber, and Showalter15 extended this conclusion by showing that Catholic school students were more likely to attend selective colleges than were public school students. extended this conclusion by showing that Catholic school students were more likely to attend selective colleges than were public school students.

The Character of Private Schools Numerous investigators have observed private schools, and sometimes contrasted them with nearby public schools, to discover why they are more effective and efficient and have greater appeal to parents. As early as the 1970s, Thomas Sowell16 reported case studies of schools located in Atlanta, Baltimore, New Orleans, and Washington, DC, that educated a long list of black graduates who made outstanding breakthroughs, including a state superintendent of schools, a Supreme Court justice, and a military general. Sowell attributed the success of these schools to strong princ.i.p.als and a social order concentrated on achievement and discipline: reported case studies of schools located in Atlanta, Baltimore, New Orleans, and Washington, DC, that educated a long list of black graduates who made outstanding breakthroughs, including a state superintendent of schools, a Supreme Court justice, and a military general. Sowell attributed the success of these schools to strong princ.i.p.als and a social order concentrated on achievement and discipline: "Respect" was the word most used by those interviewed to describe the att.i.tudes of students and parents toward these schools. "The teacher was "Respect" was the word most used by those interviewed to describe the att.i.tudes of students and parents toward these schools. "The teacher was always always right" was a phrase that was used again and again to describe the att.i.tude of the black parents of a generation or more ago. . . . Even today, in those few instances where schools have the confidence of black parents, a wise student maintains a discrete silence at home about his difficulties with teachers, and hopes that the teachers do the same. right" was a phrase that was used again and again to describe the att.i.tude of the black parents of a generation or more ago. . . . Even today, in those few instances where schools have the confidence of black parents, a wise student maintains a discrete silence at home about his difficulties with teachers, and hopes that the teachers do the same.17 Chubb and Moe's detailed and paradigm-shifting 1990 study identified several characteristics of "effective schools" and then found that school sector-public or private-was by far the most significant factor in determining whether a school was effectively organized. A private school princ.i.p.al, for example, is less likely to face interference in school management by central authorities such as boards and superintendents. The resulting autonomy enables princ.i.p.als to adopt "clear academic goals, strong educational leadership, professionalized teaching, ambitious academic programs, team-like organizations-these effective school characteristics are promoted much more successfully by market control than by direct democratic control."18 On the basis of extensive observations of Catholic schools, Valerie Lee19 concluded that Catholic schools do well because they offer a delimited core curriculum followed by all students, regardless of their family background, academic preparation, or future educational plans; engender a strong sense of community exemplified by frequent opportunities for face-to-face interactions and shared experiences among adults and students at school events such as athletics, drama, and music; and expect teachers to see their responsibilities beyond cla.s.sroom subject matter and extending into hallways, school grounds, neighborhoods, and homes. Lee also noted that Catholic schools are decentralized; funds are raised and decisions are made largely at the school level. concluded that Catholic schools do well because they offer a delimited core curriculum followed by all students, regardless of their family background, academic preparation, or future educational plans; engender a strong sense of community exemplified by frequent opportunities for face-to-face interactions and shared experiences among adults and students at school events such as athletics, drama, and music; and expect teachers to see their responsibilities beyond cla.s.sroom subject matter and extending into hallways, school grounds, neighborhoods, and homes. Lee also noted that Catholic schools are decentralized; funds are raised and decisions are made largely at the school level.

Paul Peterson and I studied the organizational features, achievement, and cost differences between all Catholic and public schools in three New York City boroughs (Brooklyn, Manhattan, and the Bronx).20 We found that student achievement in Catholic schools exceeded achievement of students in public schools with comparable low, medium, and high levels of poverty. High-poverty Catholic schools did particularly well compared to high-poverty public schools and made substantial progress in closing achievement gaps. We found that student achievement in Catholic schools exceeded achievement of students in public schools with comparable low, medium, and high levels of poverty. High-poverty Catholic schools did particularly well compared to high-poverty public schools and made substantial progress in closing achievement gaps.

When comparing costs, we first subtracted from public school budgets all of the expenditures for government-funded programs for poor students and those with limited English and special needs. We also subtracted the extra public school costs of transportation, food services, and central office and community board staff that oversee schools. Even after these adjustments, Catholic schools' costs per student were only 46.8 percent those of public schools.21 Corroborating a Chubb-Moe finding about private schools, my interviews and observations in Catholic schools revealed fewer centrally determined policies. The schools had strong site-level leadership, demanding and largely academic curricula followed by all students, frequent communication with parents, and higher student retention based on parental and student satisfaction.

The public school staff I interviewed operated in a very different environment. Central office and community boards and staff, following U.S. Department of Education and New York state rules and regulations, played major roles in inst.i.tuting, funding, regulating, and ordering school-level policies and practices. In local schools, high staff turnover undermined curricula, instruction, and disciplinary policies. Central office administrators changed schools' attendance boundaries and even grade levels without consulting parents or school staff. In several hundred cla.s.srooms, I frequently saw teachers unable to keep students attentive, books being spa.r.s.ely used, and many students who had not completed a.s.signments. Children often held off-topic conversations, rested or slept at their desks, and walked around and in and out of their cla.s.srooms.

The level of courtesy, respect, and fairness observed in Catholic schools was much higher. Disciplined teaching and learning were pervasive. The princ.i.p.als maintained a clear focus on academic programs and sustained engaged leadership. In general, decisions related to instruction and the school sites were made at the school site rather than mandated from above. On the whole, cla.s.ses received academically challenging tasks and completed them. My observations in Catholic schools showed students keeping notebooks of a.s.signments, completing homework and subject-related notes, and receiving daily grades.

Though these observational studies concern samples of private African-American and Catholic schools, Chubb and Moe's a.n.a.lysis explains why similar findings are likely when Jewish, Lutheran, Muslim, and other sectarian and nonsectarian private schools are examined.

In summary, private schools exhibit superior academic achievement levels even after controlling for family socioeconomic status and other factors, though whether such factors can be completely controlled for is a subject of continuing controversy. The reason private schools excel is the way they are organized-strong princ.i.p.als with clear academic visions, the freedom to adopt and pursue policies, etc.-and this organizational form in turn is both made possible and strongly encouraged by market compet.i.tion, producer autonomy, and consumer choice.

Effects of Private Schools on Efficiency A large scholarly literature compares public and private provision of many services.22 John Hilke's survey John Hilke's survey23 of more than 100 independent studies of privatization (moving from public to private provision of a service) showed cost reductions of between 20 percent and 50 percent, even though the quality of services and customer satisfaction were just as high or higher. Private firms, in other words, are up to twice as efficient as government agencies at delivering goods and services. of more than 100 independent studies of privatization (moving from public to private provision of a service) showed cost reductions of between 20 percent and 50 percent, even though the quality of services and customer satisfaction were just as high or higher. Private firms, in other words, are up to twice as efficient as government agencies at delivering goods and services.

Proponents of school choice have said that private schools have similar efficiency advantages over public schools and that school choice programs would produce substantial savings for taxpayers or enable higher-quality private schooling to be purchased with current levels of spending. Comparisons of public and private per student spending offer a partial test of this claim. Such comparisons are difficult, however, because public school expenditures are variously calculated in different localities and states, and private school tuition may be subsidized just as some parents and firms privately contribute, though perhaps to a lesser extent, to public schools.

Several studies take such factors into account and still show greater efficiency of private schools. Andrew Coulson's study of Arizona schools, for example, showed that private schools spend about 66 percent of the amount spent by public schools.24 John Wenders John Wenders25 compiled similar estimates of private school per pupil spending as a fraction of public school costs. The estimates he reports for several types of schools-Catholic schools with and without parish subsidies, nonsectarian, all private, and all private without Catholic and Lutheran schools-cl.u.s.ter around 55 percent. compiled similar estimates of private school per pupil spending as a fraction of public school costs. The estimates he reports for several types of schools-Catholic schools with and without parish subsidies, nonsectarian, all private, and all private without Catholic and Lutheran schools-cl.u.s.ter around 55 percent.

For those who want to look at taxpayer taxpayer rather than total costs, it is reasonable to compare private school tuition with public school expenditures. rather than total costs, it is reasonable to compare private school tuition with public school expenditures. Table 4-4 Table 4-4 compares per pupil spending by public schools with average private school tuition for six cities and the national average. compares per pupil spending by public schools with average private school tuition for six cities and the national average.26 Unfortunately, separate figures for public elementary and secondary (or high) schools were unavailable. However, even though secondary schools are substantially more costly than elementary schools, private Unfortunately, separate figures for public elementary and secondary (or high) schools were unavailable. However, even though secondary schools are substantially more costly than elementary schools, private secondary secondary schools cost 31 percent less than the average for schools cost 31 percent less than the average for all all public schools. Private school tuition in all cities sampled (except the special case of Washington) and the United States as a whole is substantially lower than public school spending. public schools. Private school tuition in all cities sampled (except the special case of Washington) and the United States as a whole is substantially lower than public school spending.

For an overall estimate of public and private school costs, if we a.s.sume that enrollment is constant across grades and that private schools are divided into grades 1-8 and 9-12, the weighted estimate of tuition at all private schools is $5,140, which is 42 percent less than public school per student spending, amounting to a difference NOTE: The authors sampled big city school systems in several parts of the country for which data were available. For the special case of Washington, where foreign diplomats, congressional people, and well-heeled lobbyists reside, more realistic estimates of median tuition were obtained for neighboring Maryland and Virginia counties; they accord well with the other comparisons. of $3,690 based on the figures in Table 4-4 Table 4-4. Multiplying this difference by the number of public school students (54.5 million in 2005) yields $201 billion, the hypothetical and roughly estimated savings if all public school students joined those in private schools (a.s.suming no subsequent rise in average tuition attributable to that shift).

Table 4-4 PUBLIC SPENDING AND PRIVATE TUITION IN SIX LARGE AND MIDSIZED CITIES AND THE UNITED STATES FOR THE 2002-03 SCHOOL YEAR PUBLIC SPENDING AND PRIVATE TUITION IN SIX LARGE AND MIDSIZED CITIES AND THE UNITED STATES FOR THE 2002-03 SCHOOL YEAR [image]

Since private schools cost so much less than public schools, allowing parents to choose private schools for their children should in principle allow huge taxpayer savings while leaving per pupil spending by public schools unchanged. To estimate these savings, David Salisbury27 compiled a.n.a.lyses of available costs of school choice programs in Arizona, Cleveland, Florida, Maine, Pennsylvania, and Vermont and for proposed plans for Baltimore, New Hampshire, South Carolina, Utah, and Vermont. Of course, estimating such savings requires a.s.sumptions about enrollment trends and public spending decisions that would have occurred in the absence of the choice programs, which make calculations questionable. compiled a.n.a.lyses of available costs of school choice programs in Arizona, Cleveland, Florida, Maine, Pennsylvania, and Vermont and for proposed plans for Baltimore, New Hampshire, South Carolina, Utah, and Vermont. Of course, estimating such savings requires a.s.sumptions about enrollment trends and public spending decisions that would have occurred in the absence of the choice programs, which make calculations questionable.28 Even so, such estimates with reasonable a.s.sumptions nearly always point to large savings for taxpayers. For example, Milwaukee's public schools estimate that they would have to spend $70 million more a year on operations and up to $70 million on capital projects if the Milwaukee School Choice program were to end.29 A taxpayer organization in Florida estimates that the Florida Corporate Income Tax for Scholarships Program will save the state $1 billion over eight years. A taxpayer organization in Florida estimates that the Florida Corporate Income Tax for Scholarships Program will save the state $1 billion over eight years.30 Pennsylvania's Education Improvement Tax Credit is estimated to have saved the state's taxpayers between $147 million and $205 million. Pennsylvania's Education Improvement Tax Credit is estimated to have saved the state's taxpayers between $147 million and $205 million.31 In conclusion, the a.s.sertion that private schools are more efficient than public schools is amply doc.u.mented in the literature. Private schools, on average, spend thousands of dollars less per pupil than do public schools. Since private schools achieve at least as much as public schools and probably more, they are obviously more efficient economically. Expanding school choice programs to enable more parents to choose private schools should save taxpayers large amounts of money, or enable more educational services to be purchased without exceeding current spending levels.

Effects of Private Schools on Tolerance, Civic Partic.i.p.ation, and Social Integration Even if private schools are more efficient, they might still be criticized for being h.o.m.ogeneous enclaves of intolerance, un-Americanism, or even tribalism. Such criticism ignores the traditional American right to congregate and the lessons of the first two American centuries, a period when private education was prevalent and private schools helped a.s.similate millions of immigrants into the American economy and society. Still, it is an empirical question whether or not private schools foster intolerance and civic indifference.

To answer this question, David Campbell32 a.n.a.lyzed a large national data set on secondary school students that contains several questions on tolerance for anti-religious activities. Perhaps surprisingly, he found that Catholic school and nonsectarian private school students were more likely to be tolerant than were public school students. These students were also more likely than public school students to partic.i.p.ate in civic activities such as volunteering, public speaking, and writing editorial letters on public issues. a.n.a.lyzed a large national data set on secondary school students that contains several questions on tolerance for anti-religious activities. Perhaps surprisingly, he found that Catholic school and nonsectarian private school students were more likely to be tolerant than were public school students. These students were also more likely than public school students to partic.i.p.ate in civic activities such as volunteering, public speaking, and writing editorial letters on public issues.

Private, alternative, and magnet schools apparently have stronger civic climates, which, in turn, may lead to increasing political partic.i.p.ation and voting behavior later in life. Daniel McFarland and Carlos Starmanns studied student councils in hundreds of high schools across the country and examined the written const.i.tutions of 207 public and 66 private high schools. They found: Alternative schools-charter, magnet, or private-seem to offer opportunities for meaningful political partic.i.p.ation greater than even the wealthiest public schools. Student councils typically consist of 20 to 40 officers, regardless of school size, so these generally smaller schools enable a greater percentage of students to hold office. And because alternative schools tend to have a clear mission, their const.i.tutions try to uphold school values-by encouraging the election of moral exemplars, for example. Alternative schools-charter, magnet, or private-seem to offer opportunities for meaningful political partic.i.p.ation greater than even the wealthiest public schools. Student councils typically consist of 20 to 40 officers, regardless of school size, so these generally smaller schools enable a greater percentage of students to hold office. And because alternative schools tend to have a clear mission, their const.i.tutions try to uphold school values-by encouraging the election of moral exemplars, for example.33 Another way to examine the question is to compare the att.i.tudes of college students educated in private and public schools. Wolf, Greene, Kleitz, and Thalhammar34 surveyed 1,212 students in introductory American government courses at the University of Texas-Austin, the University of North Texas, the University of Houston, and Texas Christian University. Their survey results indicate that the privately educated students have substantially higher tolerance scores than do those educated in public high schools. surveyed 1,212 students in introductory American government courses at the University of Texas-Austin, the University of North Texas, the University of Houston, and Texas Christian University. Their survey results indicate that the privately educated students have substantially higher tolerance scores than do those educated in public high schools.

Schools with the strongest civic climates tend to increase civic partic.i.p.ation in later life. Campbell35 a.n.a.lyzed Youth Studies Series data obtained in interviews with high school seniors, their cla.s.smates, and parents in 1965 and from the same students interviewed again in 1973 and 1982. Campbell found that "cohesive schools," including those with a h.o.m.ogeneous political composition, foster higher rates of voting in later adult life. a.n.a.lyzed Youth Studies Series data obtained in interviews with high school seniors, their cla.s.smates, and parents in 1965 and from the same students interviewed again in 1973 and 1982. Campbell found that "cohesive schools," including those with a h.o.m.ogeneous political composition, foster higher rates of voting in later adult life.

But are privately educated ethnic minorities more tolerant, particularly those with large fractions of recent immigrants? To answer this question, Greene, Giammo, and Mellow36 a.n.a.lyzed data from the Latino National Political Survey, a national sample of adult Latinos. Those educated predominately in private schools were significantly more likely to be tolerant than were those who had been educated in U.S. public and foreign schools. For example, Latinos who received their education entirely in private schools were willing to tolerate the political activities of their least-liked group substantially more frequently than those who never attended private school (holding all other factors statistically constant). Privately educated Latinos, moreover, were more likely to vote and more likely to join civic organizations. a.n.a.lyzed data from the Latino National Political Survey, a national sample of adult Latinos. Those educated predominately in private schools were significantly more likely to be tolerant than were those who had been educated in U.S. public and foreign schools. For example, Latinos who received their education entirely in private schools were willing to tolerate the political activities of their least-liked group substantially more frequently than those who never attended private school (holding all other factors statistically constant). Privately educated Latinos, moreover, were more likely to vote and more likely to join civic organizations.

These appear to be the most rigorous studies available, and they show a consistent pattern favoring private schools' capacity for developing valued social att.i.tudes. The findings certainly contradict the stereotype of private schools as enclaves of intolerance. Yet, because of parental att.i.tudes and other difficult-to-measure conditions, there is a possibility that private school students might have developed more valued att.i.tudes had they gone to public schools. So, the research is not quite conclusive.

Effects of Private Schools on Racial Integration Several empirical studies have found that the parents who are the most likely to choose their children's schools tend to be somewhat more likely to be white and of higher socioeconomic status than nonchoosers. It does not follow, however, that private schools are segregated or would become segregated under a universal school choice program.37 As Greene As Greene38 points out, rather than blame parental bigotry, it is reasonable to think that wealthier parents simply can afford to do what the majority of parents, rich and poor, say they would prefer to do if cost were not an obstacle-send their children to private schools. For this reason, students from white and wealthier families are somewhat overrepresented in private schools. In addition, Italians, Irish, Poles, and other groups are most often white and tend to send their children to Catholic schools for religious rather than racial reasons. points out, rather than blame parental bigotry, it is reasonable to think that wealthier parents simply can afford to do what the majority of parents, rich and poor, say they would prefer to do if cost were not an obstacle-send their children to private schools. For this reason, students from white and wealthier families are somewhat overrepresented in private schools. In addition, Italians, Irish, Poles, and other groups are most often white and tend to send their children to Catholic schools for religious rather than racial reasons.

Because they are often appealing and distinctive, private schools may allow and encourage voluntary integration. To investigate this view, Jay Greene examined the racial composition of a random sample of public and private school students' cla.s.srooms, collected by the National Education Longitudinal Study. He found that "private school students were significantly more likely to be in cla.s.srooms whose racial composition resembled the national proportion of minority students and significantly less likely to be in cla.s.srooms that almost entirely consisted of white or minority students."39 Greene's a.n.a.lyses showed that private school students are more likely to report greater levels of cross-racial friendship and fewer instances of racial fighting than are public school students. Greene's a.n.a.lyses showed that private school students are more likely to report greater levels of cross-racial friendship and fewer instances of racial fighting than are public school students.40 He also found that voluntary choice in public school systems diversified racial composition: He also found that voluntary choice in public school systems diversified racial composition: Public schools with more students from outside their attendance zones, that is with more magnet program or transfer students, had higher rates of integration. It appears that choice systems, where schooling is detached from housing, are better able to transcend racial segregation in housing patterns. Traditional public schools, however, appear to replicate and perhaps reinforce racial segregation in housing. Public schools with more students from outside their attendance zones, that is with more magnet program or transfer students, had higher rates of integration. It appears that choice systems, where schooling is detached from housing, are better able to transcend racial segregation in housing patterns. Traditional public schools, however, appear to replicate and perhaps reinforce racial segregation in housing.41 Research on Milwaukee and Cleveland, which have voucher programs, shows that students choosing their schools were more likely to attend schools that were racially representative of the broader community. They were less likely to attend racially h.o.m.ogeneous schools than were traditional public school students.42 Private Schools in Other Countries Private schools in other countries provide an additional database for research on the effects of private schools on academic achievement. Andrew Coulson43 a.n.a.lyzed statistically controlled studies carried out in India, Pakistan, Indonesia, the Philippines, Thailand, Vietnam, Tanzania, the Dominican Republic, Chile, and the United States. As shown in the a.n.a.lyzed statistically controlled studies carried out in India, Pakistan, Indonesia, the Philippines, Thailand, Vietnam, Tanzania, the Dominican Republic, Chile, and the United States. As shown in the Table 4-5 Table 4-5, the results showed an overwhelming advantage of private schools. Of 50 comparisons that could be found for six criteria, 41 (82 percent) showed a private-sector advantage.

Similarly, James Tooley and Pauline Dixon compared outcomes and costs in the two sectors in low-income countries including Ghana, India, Kenya, and Nigeria.44 Their summary indicates that achievement test scores of the poorest students in these poor countries were considerably higher in private than in government schools at between half and a quarter of the teacher salary costs. They find great success taking place in private schools, often contrary to the a.s.sumptions of educational authorities and foreign experts. Their summary indicates that achievement test scores of the poorest students in these poor countries were considerably higher in private than in government schools at between half and a quarter of the teacher salary costs. They find great success taking place in private schools, often contrary to the a.s.sumptions of educational authorities and foreign experts.

Table 4-5 NUMBER OF FINDINGS ON PRIVATE- AND PUBLIC-SECTOR ADVANTAGE NUMBER OF FINDINGS ON PRIVATE- AND PUBLIC-SECTOR ADVANTAGE SOURCE: Andrew J. Coulson, "How Markets Affect Quality: Testing a Theory of Market Education against the International Evidence," in Educational Freedom and Urban America Educational Freedom and Urban America, ed. David Salisbury and Casey Lartigue Jr. (Washington: Cato Inst.i.tute, 2004).

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Priyanka Anand, Alejandra Mizala, and Andrea Repetto's a.n.a.lysis of the Chilean school voucher program, which included nationally standardized controls for parent socioeconomic status, community demographics, per student spending, and other possible influences on achievement, showed significant private-public school differences favoring private schools, and also strongly suggested that the achievement of students that moved from public to private schools was significantly and positively affected.45 Conclusion The effects of private schools in the United States on academic achievement, costs, racial integration, tolerance, and active citizenship have been studied by many researchers over many years. Higher admissions to elite colleges, exposure to people of different backgrounds, and later civic community involvement are all hall-marks of a private education.

Little of the evidence, however, attains the "gold standard" of random a.s.signment of students to schools, and it is compromised somewhat by the difficulty in controlling for parental socioeconomic status, parent and student motivation, and other factors. The largest and most rigorous U.S. studies, however, repeatedly find positive effects of private schools, and they are corroborated by studies in foreign countries, which are often larger and more rigorous than the U.S. research.

5. Geopolitical Area Choice Effects

The three preceding chapters focused on the effects of charter schools, education vouchers, and private schools on students who attend schools of choice as well as those who remain in traditional public schools. In all three cases, positive effects on both categories of students were cited.

Market effects may also be a.s.sessed by measuring the relative degree of school choice and compet.i.tion within geopolitical areas such as parts of cities, cities, counties, states, and nations and comparing the educational outcomes across areas with varying degrees of choice. In principle, market pressures are higher when public and private school choice programs combine to expose themselves and traditional public schools to real compet.i.tion, when school districts are small enough to cause interdistrict compet.i.tion for students and taxpayers, when public school organizations are small and decentralized, and when public schools rely on local rather than state funding sources (thereby forcing them to compete with other districts to attract and retain residents).

Since choice and compet.i.tion vary considerably from place to place, research on their effects is often more robust than studies of charter or voucher schools, which tend to be few in number and new or only a few years old. However, choice concentration research usually relies on statistical (regression) a.n.a.lysis to control for confounding factors, and so it does not achieve the "gold standard" of random-a.s.signment studies. Large-scale studies in the United States and elsewhere nevertheless provide creditable evidence of "market effects," particularly when combined with the generally accepted conclusion that market compet.i.tion among providers benefits consumers.

Literature Reviews Two comprehensive reviews of the literature on choice concentration effects have been conducted. The first, reported in 2001 by political scientists Paul Teske and Mark Schneider,1 included about 25 large-scale, rigorous, quant.i.tative studies and about 75 qualitative case studies of schools in the United States. The authors examined a variety of outcomes. They explained: included about 25 large-scale, rigorous, quant.i.tative studies and about 75 qualitative case studies of schools in the United States. The authors examined a variety of outcomes. They explained: A combination of evidence is important in a domain in which economists, political scientists, sociologists, educational scholars, and others often read work only in their own disciplines. Moreover, while other researchers have reviewed various pieces of the choice literature, most are focused on only one aspect or type of choice. Here a broader a.n.a.lysis is sought. A combination of evidence is important in a domain in which economists, political scientists, sociologists, educational scholars, and others often read work only in their own disciplines. Moreover, while other researchers have reviewed various pieces of the choice literature, most are focused on only one aspect or type of choice. Here a broader a.n.a.lysis is sought.2 Teske and Schneider found a research consensus that "parents are more satisfied with choice, that they report using academic preferences to make choices, and that they tend to be more involved with their child's education as a consequence of choice."3 Referring to public and private choice programs generally, they conclude, Referring to public and private choice programs generally, they conclude, While not all of these studies conclude that choice enhances [academic] performance, it is significant to note that the best ones do, and that [we] did not find any study that doc.u.ments significantly lower performance in choice schools. While not all of these studies conclude that choice enhances [academic] performance, it is significant to note that the best ones do, and that [we] did not find any study that doc.u.ments significantly lower performance in choice schools.4 Also reported in 2001, the second literature review, by economists Clive Belfield and Henry Levin,5 examined more than 40 studies of school compet.i.tion. The studies reported a.n.a.lyses of the effects of the percentages of students enrolled in private schools and decentralized public school systems (where compet.i.tion is engendered by a greater number of smaller school districts within a county or state). They concluded: examined more than 40 studies of school compet.i.tion. The studies reported a.n.a.lyses of the effects of the percentages of students enrolled in private schools and decentralized public school systems (where compet.i.tion is engendered by a greater number of smaller school districts within a county or state). They concluded: A sizable majority of these studies report beneficial effects of compet.i.tion across all outcomes, with many reporting statistically significant coefficients. Those outcomes included test scores, graduation rates, teacher salaries, housing prices, and adult wages. A sizable majority of these studies report beneficial effects of compet.i.tion across all outcomes, with many reporting statistically significant coefficients. Those outcomes included test scores, graduation rates, teacher salaries, housing prices, and adult wages.6 The many U.S. studies reviewed by Teske and Schneider, and Belfield and Levin, usually concerned school choice in single states and metropolitan areas. Two recent and much larger studies, described below, corroborate these literature reviews. The first concerns the effects of choice in 39 countries; the second looks at an index of choice in all 50 states.

Compet.i.tion in 39 Countries Ludger Woessmann, a research a.s.sociate at the Kiel Inst.i.tute of World Economics in Kiel, Germany, combined data from the United Nations Educational, Scientific, and Cultural Organization (UNESCO) and the World Bank on public spending per student in secondary education, from the Organization for Economic Cooperation and Development (OECD) on inst.i.tutional features such as the distribution of decisionmaking powers in public school systems and enrollment in private schools, and student-level academic achievement data from the Third International Mathematics and Science Study (the largest international student achievement survey ever conducted) to create a representative sample of about 250,000 students from a population of more than 30 million students in 39 economically advanced and emerging economies.7 Woessmann found that compet.i.tion from private schools and the degree of centralization of authority in public school systems varied dramatically among countries, providing considerable natural variation for measuring the effects of compet.i.tion on achievement. His a.n.a.lysis showed that, for all the countries, increased per student spending "does not generally raise educational performance," and, in particular, there is "no systematic relationship between resources and performance across time within most countries in the OECD [30 economically advanced countries of the 39 included in the study]."8 Higher levels of private school governance, however, were a.s.sociated with higher academic performance: Students in countries with larger shares of their enrollment in privately managed schools scored significantly higher in both math and science. If the share of enrollment in privately managed schools was 10 percentage points higher, students scored 6 points better in math, 5 in science. The effect was even larger when only those private inst.i.tutions that were financially independent were considered. Students in countries with larger shares of their enrollment in privately managed schools scored significantly higher in both math and science. If the share of enrollment in privately managed schools was 10 percentage points higher, students scored 6 points better in math, 5 in science. The effect was even larger when only those private inst.i.tutions that were financially independent were considered.9 As was pointed out in Chapter 4, several OECD countries have attained considerable recent success with publicly financed voucher or scholarship programs that enable students to attend privately managed schools. (In these cases, public funds go not directly to schools as in the case of charter schools but to families that can use the voucher at schools they choose.) Compet.i.tion in the 50 States Jay Greene10 developed an Education Freedom Index (EFI) to measure the amount of school choice present in all 50 states. As revised in 2002, the index is an equally weighted average of five measures of educational options: developed an Education Freedom Index (EFI) to measure the amount of school choice present in all 50 states. As revised in 2002, the index is an equally weighted average of five measures of educational options: * the availability of charter school options, * the availability of charter school options, * the availability of government-a.s.sisted private school options (e.g., vouchers), * the availability of government-a.s.sisted private school options (e.g., vouchers), * the ease with which one can homeschool one's child, * the ease with which one can homeschool one's child, * the ease with which one can choose a different public school district by relocating, and * the ease with which one can choose a different public school district by relocating, and * the ease with which one can send a child to a different public school district without changing residence. * the ease with which one can send a child to a different public school district without changing residence.

According to the EFI, the greatest amount of school choice can be found in Arizona, which has the largest number of charter schools in the nation, imposes few regulations on homeschoolers, has a tax credit program for private school tuition, and encourages interdistrict public school choice. With only one school board for the entire state, few charter schools, and heavily regulated homeschooling, Hawaii has the least amount of educational freedom.

Using statistical (regression) a.n.a.lysis, Greene isolated the choice effect from the significant and potentially confounding effects of median household income and the percentage of ethnic minorities in each state, and two insignificant variables (average cla.s.s size and per student expenditures). He found that the EFI scale was significantly a.s.sociated with test scores. A one-point increase on the EFI scale (which ranged from .84 to 2.94) was a.s.sociated with a 24-point increase on the Scholastic Apt.i.tude Test and a 5.5 percent increase in the number of students performing proficiently on the National a.s.sessment of Educational Progress (NAEP). By comparison, a $1,000 boost in median household income corresponds to only a .3 percent increase in the percentage of students performing proficiently on the NAEP exam. Thus, both apt.i.tude and achievement were substantially a.s.sociated with school choice.11 Andrew Coulson developed a more comprehensive index of educational market freedom in 2006, which weighs both the extent of parental choice and both public and private schools' autonomy over such things as curriculum, testing, budgets, staffing, and teacher certification. A controlled statistical (regression) a.n.a.lysis taking into consideration demographic factors showed that the index explained more of the variation in a combined measure of test scores and graduation rates "than did race, wealth, presence of nuclear families, or parental education," which are well-known to be related to achievement. 12 12 Compet.i.tion among School Districts In a 1956 article t.i.tled "A Pure Theory of Local Expenditures,"13 economist Charles Tiebout pointed out that government jurisdictions such as counties and school districts compete with one another to attract and retain citizens. Communities provide a diversity of offerings, and rational citizens choose to move to or stay in those that best satisfy their weighting of perceived benefits, including such things as cultural amenities, well-regarded schools, rurality, proximity to work and recreation, and low taxes. economist Charles Tiebout pointed out that government jurisdictions such as counties and school districts compete with one another to attract and retain citizens. Communities provide a diversity of offerings, and rational citizens choose to move to or stay in those that best satisfy their weighting of perceived benefits, including such things as cultural amenities, well-regarded schools, rurality, proximity to work and recreation, and low taxes.

Compet.i.tion among communities for residents can foster compet.i.tion, efficiency, and the matching of freely chosen interests with public offerings in a manner resembling private markets. Tiebout's article led to many empirical studies of the demand for public amenities such as public libraries, policing, sanitation, and health services. The "Tiebout effect," as it has come to be called, explains a wide variety of local government phenomena such as why urban and regional governments use zoning laws to prevent "free riding" by citizens who want to build small homes in communities with high property wealth and low tax rates and why big, inefficient cities lose residents.

The Tiebout effect can also explain why some public schools are better than others.14 In 1992 I first became interested in the possible benefits of small districts and local funding, and so I carried out the first study to compare school district size and reliance on state rather than local spending and student achievement. In 1992 I first became interested in the possible benefits of small districts and local funding, and so I carried out the first study to compare school district size and reliance on state rather than local spending and student achievement.15 The study used a random sample of students within the 37 states and the District of Columbia that partic.i.p.ated in the National a.s.sessment of Educational Progress academic testing program. I found that student achievement was inversely proportional to average school district size (after controlling for state demographics). The smaller the share of K-12 expenditures paid for by local districts, moreover, the worse the achievement. As many studies have shown, per student expenditures had no relation to achievement. The study used a random sample of students within the 37 states and the District of Columbia that partic.i.p.ated in the National a.s.sessment of Educational Progress academic testing program. I found that student achievement was inversely proportional to average school district size (after controlling for state demographics). The smaller the share of K-12 expenditures paid for by local districts, moreover, the worse the achievement. As many studies have shown, per student expenditures had no relation to achievement.

Other researchers have studied school district size and achievement and come to similar conclusions. Melvin Borland and Roy Howsen16 may have been the first to employ the Herfindahl Index to measure the effects of Tiebout choice in public school districts. The Herfindahl Index is a measure of industry concentration that can range from zero (fully compet.i.tive) to one (fully monopolistic and consisting of a single provider). may have been the first to employ the Herfindahl Index to measure the effects of Tiebout choice in public school districts. The Herfindahl Index is a measure of industry concentration that can range from zero (fully compet.i.tive) to one (fully monopolistic and consisting of a single provider).17 The Federal Trade Commission defines industrial markets below 0.1 as unconcentrated, between 0.1 and 0.18 as moderately concentrated, and above 0.18 as concentrated. The Federal Trade Commission defines industrial markets below 0.1 as unconcentrated, between 0.1 and 0.18 as moderately concentrated, and above 0.18 as concentrated. 18 18 By these standards, education markets are highly concentrated, that is, substantially uncompet.i.tive. By these standards, education markets are highly concentrated, that is, substantially uncompet.i.tive.19 Borland and Howsen's research on Kentucky school districts concluded that school districts with a Herfindahl Index of more than 0.50 had significantly lower achievement scores than districts with scores of less than 0.50. Borland and Howsen's research on Kentucky school districts concluded that school districts with a Herfindahl Index of more than 0.50 had significantly lower achievement scores than districts with scores of less than 0.50.

Caroline Hoxby a.n.a.lyzed data from the National Education Longitudinal Study, which contained a greater number and range of metropolitan and district sizes than those in Kentucky.20 She found large effects of interdistrict compet.i.tion: with a 1 percent increase in the Herfindahl Index of interdistrict choice, available 8th-grade reading scores, 10th-grade math scores, and 12th-grade reading scores increased between 3 and 6 percentile points. She found large effects of interdistrict compet.i.tion: with a 1 percent increase in the Herfindahl Index of interdistrict choice, available 8th-grade reading scores, 10th-grade math scores, and 12th-grade reading scores increased between 3 and 6 percentile points.21 In 2005 Jay Greene and Marcus Winters22 conducted a similar state-level a.n.a.lysis. They also found a substantial and significant negative effect of district size on graduation rates and no effect of per student expenditures. They concluded that lack of compet.i.tion in states with generally large districts-Florida, Hawaii, and Nevada-reduces student attainment. conducted a similar state-level a.n.a.lysis. They also found a substantial and significant negative effect of district size on graduation rates and no effect of per student expenditures. They concluded that lack of compet.i.tion in states with generally large districts-Florida, Hawaii, and Nevada-reduces student attainment.

For more than a half century, policymakers have unfortunately increased the size of school districts, often in a fruitless attempt to achieve "economies of scale."23 In the 1937-38 school year, the total number of traditional public school districts was about 119,000. The number of districts dwindled to fewer than 15,000 by 2001-02. In the 1937-38 school year, the total number of traditional public school districts was about 119,000. The number of districts dwindled to fewer than 15,000 by 2001-02.24 The result, as the research clearly shows, has been less compet.i.tion between school districts, which is a.s.sociated with lower levels of student achievement. The result, as the research clearly shows, has been less compet.i.tion between school districts, which is a.s.sociated with lower levels of student achievement.

Some states still continue to pursue the counterproductive consolidation of small school districts into larger ones. For example, Arkansas recently consolidated its 308 school districts into 254 larger ones. Other states, such as Illinois and Arizona, have recently considered consolidating school districts that they consider particularly small. Several studies indicate, if anything, that breaking up the largest districts such as Los Angeles would be a wiser policy.25 Decentralized Montana exemplifies the positive results achieved with a small state funding ratio and a large number of tiny school districts.26 Montana's student achievement results have consistently ranked at or near the top of U.S. state achievement rankings, and its school districts have as few as a few hundred students. Montana's student achievement results have consistently ranked at or near the top of U.S. state achievement rankings, and its school districts have as few as a few hundred students.27 In a state with mostly small school districts, the school board members, administrators, and teachers often personally know students, their siblings, and their parents. The parents and other citizens also tend to know one another and their elected board members, and it is worthwhile for them to talk with each other about school problems. It is rational for them to inform themselves about school issues since their votes count heavily in school board elections. None of this tends to be true of large school districts. In a state with mostly small school districts, the school board members, administrators, and teachers often personally know students, their siblings, and their parents. The parents and other citizens also tend to know one another and their elected board members, and it is worthwhile for them to talk with each other about school problems. It is rational for them to inform themselves about school issues since their votes count heavily in school board elections. None of this tends to be true of large school districts.

Organization Size and Bureaucracy As the number of school districts has fallen, the number of students per district has risen by a factor of more than 10, from 214 to 2,683.28 Schools and school systems became larger, and a few gigantic big-city school districts came to enroll several times more students than the number of Schools and school systems became larger, and a few gigantic big-city school districts came to enroll several times more students than the number of citizens citizens in some western states. There are good reasons to suppose, and data to confirm, that larger and more bureaucratic school districts are less productive because of inefficiencies and dysfunction that would not exist in a marketplace composed of smaller competing inst.i.tutions. in some western states. There are good reasons to suppose, and data to confirm, that larger and more bureaucratic school districts are less productive because of inefficiencies and dysfunction that would not exist in a marketplace composed of smaller competing inst.i.tutions.

The optimal size of an organization depends on the ends to be achieved. Large organizations, particularly manufacturing firms, may become efficient by searching for the single best choice and reducing unit costs by large-scale manufacturing, purchasing, or sale ("economies of scale"). Larger size, however, makes it more likely that organizations will have internal and external communication problems that make it difficult to satisfy customers and to achieve the organization's nominal mission. Those problems can be solved, but not without cost.

Research by psychologists and sociologists shows that organizations as diverse as business firms and psychiatric units of hospitals face difficult problems in achieving their stated ends when they grow large.29 Consider the plight of the large airlines and automobile manufacturers. Their problems may be viewed as psychological impediments to information flow and deterrents to economic efficiency allowed by limited market compet.i.tion (typically under government-protected monopolistic or oligopolistic conditions). In the terminology of organizational psychology, the "coordination costs" of communicating among departments and administrative levels divert money, time, and attention from the organizations' ultimate purposes. "Agency problems" mean that nominal governance is remote from service delivery and customer satisfaction, allowing each level of administration to mistakenly report to or misunderstand information from levels above and below it. Sometimes such errors may be deliberate to enhance the power and compensation of members of parts of the organization. To control coordination and agency problems, big organizations must impose complex rules, but setting forth and following these rules divert further resources and discourage efficient innovations and sensitivity to customer preferences. Consider the plight of the large airlines and automobile manufacturers. Their problems may be viewed as psychological impediments to information flow and deterrents to economic efficiency allowed by limited market compet.i.tion (typically under government-protected monopolistic or oligopolistic conditions). In the terminology of organizational psychology, the "coordination costs" of communicating among departments and administrative levels divert money, time, and attention from the organizations' ultimate purposes. "Agency problems" mean that nominal governance is remote from service delivery and customer satisfaction, allowing each level of administration to mistakenly report to or misunderstand information from levels above and below it. Sometimes such errors may be deliberate to enhance the power and compensation of members of parts of the organization. To control coordination and agency problems, big organizations must impose complex rules, but setting forth and following these rules divert further resources and discourage efficient innovations and sensitivity to customer preferences.30 When businesses grow so large that solving coordination and agency problems becomes too expensive, the "creative destruction" of compet.i.tive markets forces firms to return to their optimal size or go out of business. If their boards and senior staff don't reform themselves, the firms are acquired by or merged with other firms, or they go bankrupt. Monopolistic government-run organizations that have grown too large, however, may continue to operate and grow indefinitely since they remain undisciplined by market compet.i.tion. Traditional public schools and school districts are cla.s.sic cases since their dissatisfied parents have had little recourse except moving or paying tuition to private schools.

Government budgets are usually arcane, and few citizens take the trouble to master them. School district control is often "captured" by special interest groups, particularly teachers' unions.31 Their members are far fewer in number than voters, taxpayers, and their client students and their families, but their members are typically far better informed about their organizations and have agreed-upon, narrow self-interests. They are strategically organized and able to exert strong influence over often less well informed boards, administrators, legislators, governors, mayors, and other civic leaders. The rewards for each union member and public school administrator in salary and working conditions are large, but the costs may be imperceptible to taxpayers, except in the aggregate, since increases in school costs may be a minute fraction of total taxes. Their members are far fewer in number than voters, taxpayers, and their client students and their families, but their members are typically far better informed about their organizations and have agreed-upon, narrow self-interests. They are strategically organized and able to exert strong influence over often less well informed boards, administrators, legislators, governors, mayors, and other civic leaders. The rewards for each union member and public school administrator in salary and working conditions are large, but the costs may be imperceptible to taxpayers, except in the aggregate, since increases in school costs may be a minute fraction of total taxes.

With respect to K-12 education, larger units of government such as states and large city and metropolitan districts are likely to be led by people who are less well informed about the needs and preferences of smaller communities within their purview. It seems unlikely, for example, that Chicago school board members could even name the several hundred schools they are