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• W220817765 abstract "Structural reforms for elementary and secondary (K-12) schools are being seriously debated these days. The majority of U.S. states have now enacted at least some form of choice among public schools, for example a charter program, open enrollment among districts, or choice within the district. While state legislatures have been much less inclined to enact programs such as vouchers and tax incentives that increase parents' ability to choose private schools, private donors particularly like voucher programs.(1) In addition, there have been major changes in the structure of public finance in America over the last 30 years. Increasingly, finance has been centralized at the state level and has been affected strongly by school finance (a term that encompasses a variety of methods for redistributing monies from property-rich to property-poor districts).(2) It is clear why Americans are so interested in structural reform for K-12 education. On a per-pupil basis, American public education is the most expensive system in the world. Yet, American K-12 students perform only moderately well on international tests of mathematics, science, and language arts achievement. The per-pupil expense for K-12 education has grown by nearly 80 percent (after adjusting for inflation) since 1970, yet student achievement has been almost fiat over the period.(3) Since 1970, most states' finance systems have been revised in order to target more funds to disadvantaged students. As a result, differences in funding have narrowed, but there has been very little narrowing of the differences in the outcomes of students from advantaged and disadvantaged backgrounds.(4) There are three reasons why economics is valuable for the analysis of reform. First, econometric methods and evaluation techniques developed over the last decade (especially in labor and public economics) are very useful for analyzing reforms. Second, many of the puzzles in K-12 schooling are related to financing, and most structural reforms are loosely based on economic arguments. For instance, choice is related to the competitive-market metaphor, and finance equalization is based loosely on progressive taxation of income and wealth. These arguments (and the related policies) need to be made rigorous and subjected to empirical examination. Third, economists broadly agree that educational systems ought to solve the problem of investment in human capital, which involves some capital market failures and spillovers.(5) This consensus is important because it facilitates analytic progress. In contrast, popular and legal debates about education often become mired in struggles over whether it is best to maximize enrollment, maximize achievement, maximize the equality of achievement among students, or do something else entirely. In my own work on reform, I have attempted to bring all three advantages of economics to bear: modern empirical methods, rigorous economic argument, and a consistent focus on solving the human capital investment problem. Empirical Evidence on School Choice Analysis of the various reforms should begin with the two basic, traditional forms of choice in the United States: choice among public districts and choice between public and private schools. These two existing options give certain parents a substantial degree of choice, and the effects of their choices are useful for predicting the effects of other reforms. Moreover, empirical evidence on how traditional choice affects students is the only way we can learn about the general equilibrium and long-term effects of choice. For instance, several studies (including one I am conducting) are currently evaluating charter and voucher schools, using randomized treatment and control groups of students.(6) These studies can inform us about the effects of voucher or charter schools only on those students who actually use them. …" @default.
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• W220817765 date "1998-03-22" @default.
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• W220817765 title "The Economics of School Reform" @default.
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