2000
DOI: 10.1257/aer.90.5.1209
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Does Competition Among Public Schools Benefit Students and Taxpayers?

Abstract: Tiebout choice among districts is the most powerful market force in American public education. Naive estimates of its effects are biased by endogenous district formation. I derive instruments from the natural boundaries in a metropolitan area. My results suggest that metropolitan areas with greater Tiebout choice have more productive public schools and less private schooling. Little of the effect of Tiebout choice works through its effect on household sorting. This finding may be explained by another finding: … Show more

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Cited by 771 publications
(287 citation statements)
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“…Although findings on the effects of school choice in the United States are mixed (e.g., see Greene et al 1997, Rouse 1998, Witte 1995, Hoxby 2000, Krueger & Zhu 2003), a study in Colombia suggests that vouchers with a merit-scholarship component can be effective in improving short- and medium-term student achievement for participants in a developing-country setting, where the absolute quality of public schooling is low. Under the Programa de Ampliacion de Cobertura de la Educacion Secundaria (PACES), Colombia awarded nearly 125,000 vouchers between 1991 and 1997 that partly covered the costs of private school for students from poor neighborhoods.…”
Section: School Choicementioning
confidence: 99%
See 1 more Smart Citation
“…Although findings on the effects of school choice in the United States are mixed (e.g., see Greene et al 1997, Rouse 1998, Witte 1995, Hoxby 2000, Krueger & Zhu 2003), a study in Colombia suggests that vouchers with a merit-scholarship component can be effective in improving short- and medium-term student achievement for participants in a developing-country setting, where the absolute quality of public schooling is low. Under the Programa de Ampliacion de Cobertura de la Educacion Secundaria (PACES), Colombia awarded nearly 125,000 vouchers between 1991 and 1997 that partly covered the costs of private school for students from poor neighborhoods.…”
Section: School Choicementioning
confidence: 99%
“…Advocates argue that vouchers are beneficial even for the students that remain in public schools because school choice induces public schools to improve to retain pupils (Hoxby 2000). Most voucher skeptics are concerned that gains for participants may come at the expense of nonparticipants, through changes in sorting that worsen peer composition in public schools (for two nonrandomized studies of Chile’s national voucher program that try to examine aggregate effects, see Gallego 2006, Hsieh & Urquiola 2006).…”
Section: School Choicementioning
confidence: 99%
“…In some contexts, public education may have higher quality and lead to higher achievement than private education (Newhouse & Beegle, 2006). Competition between the private and public sectors may also improve educational outcomes (Hoxby, 2000; Thapa, 2013). Competition and choice are often invoked in favor of private education, but the reality of how private and public educational institutions operate is more complex (Henig, 1995; Dill, 1997; Plank & Sykes, 2003; Tooley, 2013).…”
Section: Conceptual Frameworkmentioning
confidence: 99%
“…In the United States, Hoxby (1996a) attempts to link the existence of higher private school tuition subsidies (intended to proxy vouchers) to per-pupil and total public school spending. In neither case does she find a statistically significant effect.…”
Section: M~'ewanmentioning
confidence: 99%
“…An additional strand of empirical literature explores the efficiency-enhancing effects of competition among public schools, although I shall not review that literature (Blair & Staley, 1995;Borland & Howsen, 1992;Hoxby, 1994b;Zanzig, 1997).…”
Section: Notesmentioning
confidence: 99%