The effect of charter competition on unionized district revenues and resource allocation

Jason Cook

Journal of Public Economics, 2018, vol. 158, issue C, 48-62

Abstract: This study examines the impact of competition due to charter school entry on the level of revenues and the composition of expenditures within traditional public school districts (TPSDs). I leverage a policy change affecting the location and timing of charter entry to account for endogenous charter competition. TPSDs respond to competition by allocating resources away from instructional and other expenditures toward new capital construction. Using teacher contracts, I show that collectively bargained salaries are largely unresponsive to competition and that declines in instructional spending are primarily due to decreases in the number of employed teachers. Competition depresses appraised housing valuations, in turn causing TPSDs to lose property tax revenues resulting in a decline in overall spending.

Keywords: Charter competition; Resource allocation; Measurement error; School finance; Teachers' unions (search for similar items in EconPapers)
JEL-codes: C18 H52 H75 I21 I22 I28 J31 J52 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:158:y:2018:i:c:p:48-62

DOI: 10.1016/j.jpubeco.2017.12.003

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