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American Economic Journal: Applied Economics: Vol. 2 No. 4 (October 2010)

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School Competition and Efficiency with Publicly Funded Catholic Schools

Article Citation

Card, David, Martin D. Dooley, and A. Abigail Payne. 2010. "School Competition and Efficiency with Publicly Funded Catholic Schools." American Economic Journal: Applied Economics, 2(4): 150-76.

DOI: 10.1257/app.2.4.150

Abstract

We study competition between two publicly funded school systems in Ontario, Canada: one that is open to all students, and one that is restricted to children of Catholic backgrounds. A simple model of competition between the competing systems predicts greater effort by school managers in areas with more Catholic families who are willing to switch systems. Consistent with this insight, we find significant effects of competitive pressure on test score gains between third and sixth grade. Our estimates imply that extending competition to all students would raise average test scores in sixth grade by 6 percent to 8 percent of a standard deviation. (JEL I21, I22, H75, Z12)

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Authors

Card, David (U CA, Berkeley)
Dooley, Martin D. (McMaster U)
Payne, A. Abigail (McMaster U)

JEL Classifications

H75: State and Local Government: Health; Education; Welfare; Public Pensions
I21: Analysis of Education
I22: Educational Finance
Z12: Cultural Economics: Religion

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