Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools

Downes, Thomas A.; Greenstein, Shane

doi:10.2307/2555932

Cited by 66 publications

(66 citation statements)

References 19 publications

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“…Starting from the full sample, we randomly group villages into "fake" PCs with 4 villages in each PC (the median number of villages per PC in our sample) and classify villages as eligible using the new PC classifications. 23 We then apply the sample restrictions discussed in Section IIb and estimate the reduced form relationship, cov(P rivate it , GSS it |P op 1981 ). These steps were then repeated 5000 times to generate a distribution of estimated coefficients under random assignment of villages to PCs.…”

Section: The Assignment Of Villages To Pcs Matters: a Placebo Experimentsmentioning

confidence: 99%

“…Augmenting the instrument set with potential candidates that are correlated to the probability of having a private school but uncorrelated to the wage-bill can help in identification and the efficiency of the estimator. Following Downes and Greenstein (1996), we propose using the number of public boy's primary schools as an additional instrument in the selection equation. In the presence of competitive schooling effects, private schools should be less likely to setup in villages where there are public boy's primary schools; additionally, such schools are unlikely to affect the wage-bill of the entrepreneur directly since public school teachers are rarely if ever hired locally and their wages are fixed and centrally determined.…”

Section: Price Marginmentioning

confidence: 99%

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Students today, teachers tomorrow: Identifying constraints on the provision of education

Andrabi

Das

Khwaja

2013

Journal of Public Economics

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With an estimated one hundred and fifteen million children not attending primary school in the developing world, increasing access to education is critical. Resource constraints limit the extent to which demand based subsidies can do so. This paper focuses on a supply-side factor -the availability of low cost teachers -and the resulting ability of the market to offer affordable education. We use data from Pakistan together with official public school construction guidelines to present an Instrumental Variables estimate of the effect of government school construction on private school formation. We find that private schools are three times more likely to emerge in villages with government girls' secondary schools. In contrast, there is little or no relationship between the presence of a private school and pre-existing girls' primary, or boys' primary and secondary schools. Moreover, there are twice as many educated women and private school teachers' wages are 18 percent lower in villages that received a government girls' secondary school. In an environment with poor female education and low mobility, government girls' secondary schools substantially increase the local supply of skilled women. This lowers wages for women in the local labor market and allows the market to offer affordable education. These findings highlight the prominent role of women as teachers in facilitating educational access and resonates with similar historical evidence from developed economies -the students of today are the teachers of tomorrow.

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Section: The Assignment Of Villages To Pcs Matters: a Placebo Experimentsmentioning

confidence: 99%

Section: Price Marginmentioning

confidence: 99%

Students today, teachers tomorrow: Identifying constraints on the provision of education

Andrabi

Das

Khwaja

2013

Journal of Public Economics

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“…To do this, we aggregated organization-level data to the state geography by summing values of relevant financial information based upon the address reported by nonprofit charities on IRS Form 990 and FIPS codes that indicate the state domicile of each organization. Existing research shows the nonprofit charity sector is overwhelmingly community-based and locally oriented, such that both charitable financing and spending for service provision primarily occur within state borders (Bielefeld & Murdoch, 2004;Bielefeld, Murdoch, & Waddell, 1997;Calabrese, 2011;Downs & Greenstein, 1996;DeVita, Manjarraz, & Twombly, 1999). 4 The $25,000 minimum requirement was the rule during the time period of our data; the current minimum gross revenue for required IRS Form 990 filing is $50,000.…”

Section: Model Specification and Datamentioning

confidence: 92%

Intersecting Sectors? The Connection Between Nonprofit Charities and Government Spending

Carroll

Calabrese

2017

J. Public Nonprof Aff.

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“…However, Nechyba (2003) argues that there are two additional effects that may counter this incentive -first, such equalization of spending may improve public school quality in previously low-spending districts, and second, private school attendees who previously chose to live in poor districts under local public school financing in order to take advantage of depressed housing values and lower property tax payments lose both these incentives under a move to centralized public school financing. The empirical evidence on this is mixed - Downes and Greenstein (1996) find that California experienced a sizeable growth in the number of private schools after its school finance reform while Sonstelie et al (2000) argue that the move from local to state finance had little impact on private school enrollments in California. Since in Michigan districts most affected by Proposal A were generally not the same ones most affected by charter penetration, it is unlikely that the above mechanisms played any significant role here.…”

Section: Are the Estimates Biased By The Effects Of School Finance Rementioning

confidence: 99%

Do Charter Schools Crowd Out Private School Enrollment? Evidence from Michigan

Chakrabarti

Roy

2010

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractCharter schools have been one of the most important dimensions of recent school reform measures in the United States. Currently, there are more than 4,500 charter schools spread across forty U.S. states and the District of Columbia. Though there have been numerous studies on the effects of charter schools, these have mostly been confined to analyzing the effects on student achievement, student demographic composition, parental satisfaction, and the competitive effects on regular 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 1990s. Using data on private school enrollment from decennial censuses and biennial National Center for Education Statistics private school surveys, and using a fixed-effects as well as instrumental-variables strategy that exploits exogenous variation from Michigan charter law, we investigate the effect of charter school penetration on private school enrollment. We find some evidence of a decline in enrollment in private schools -but the effect is only modest in size. This finding is reasonably robust, and survives several robustness checks.

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Understanding the Supply Decisions of Nonprofits: Modelling the Location of Private Schools

Cited by 66 publications

References 19 publications

Students today, teachers tomorrow: Identifying constraints on the provision of education

Students today, teachers tomorrow: Identifying constraints on the provision of education

Intersecting Sectors? The Connection Between Nonprofit Charities and Government Spending

Do Charter Schools Crowd Out Private School Enrollment? Evidence from Michigan

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