Is there a Difference Between For-Profit Versus Not-For-Profit Charter Schools?

Cynthia Hill () and David Welsch ()
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Cynthia Hill: Idaho State University
David Welsch: Department of Economics, University of Wisconsin - Whitewater

Working Papers from UW-Whitewater, Department of Economics

Abstract: The role of for-profit educational organizations in the predominantly public and not-for-profit K-12 U.S. schooling system is being fiercely debated across our nation. Little empirical research is available to help policy makers develop informed decisions regarding the educational value that for-profit schools provide to our students. This paper fills in part, for the first time in detail, this void. This paper uses a four year panel of charter schools from the state of Michigan and a random effects model that controls for student and district characteristics. Results indicate that for-profit charter schools have lower math test scores than not-for-profit charter schools. Interestingly, this result holds even when expenditure per pupil is controlled for. The analysis developed in this paper takes the debate one step further as well, and examines the role that the size of for-profit firms plays in the associated outcomes.

Keywords: Profit; For-Profit; Not-For-Profit; Nonprofit; Charter Schools; Random Effects; Education (search for similar items in EconPapers)
JEL-codes: H52 L30 H75 I21 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-lab and nep-ure
Date: 2008-05
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Forthcoming in Education Economics

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