Impact of Voucher Design on Public School Performance: Evidence from Florida and Milwaukee Voucher Programs

Chakrabarti Rajashri ()
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Chakrabarti Rajashri: Department of Research and Statistics, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045, USA

The B.E. Journal of Economic Analysis & Policy, 2013, vol. 13, issue 1, 349-394

Abstract: This article compares two alternative voucher designs implemented in the U.S. The Milwaukee program was a “voucher shock” program that made low-income students eligible for vouchers. The Florida program was an accountability-tied voucher program that faced failing schools with “threat of vouchers” and stigma. In the context of a formal theoretical model, the study argues that the threatened schools will improve under the Florida-type program and this improvement will exceed that of the corresponding treated schools under the Milwaukee-type program. Using school-level scores from Florida and Wisconsin, and a difference-in-differences estimation strategy in trends, it then finds strong support in favor of these predictions.

Keywords: vouchers; incentives; public school performance; mean reversion; H4; I21; I28 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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DOI: 10.1515/bejeap-2012-0037

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