Market-competition theory of voucher systemic effects, modified by financial hold-harmless design¶

Theory · All theories
Evidence · 1 claim (1 for) · 1 study (1 review), q2 · 0 of 1 report an effect size · 1 claim rests on one study

Description¶

The article describes the theory behind voucher programs: parental choice should improve student learning both for users and for students remaining in traditional public schools, because losing students and their revenue gives public schools an incentive to improve to retain or attract students. It then argues that the DC program's hold-harmless design severs the financial mechanism: "The theoretical benefit of school choice policies on public schools comes directly from the increased financial incentive that potentially losing enrollment funds provides." The article also lists non-financial channels (political embarrassment, anticipated future revenue loss, rising per-pupil resources, staff demoralization, peer-effect loss) whose direction is theoretically unclear.

Design Implications¶

Context¶

Requirements¶

• For the competitive-incentive mechanism to operate, public schools must face potential loss of enrollment funds when students use vouchers

Constraints¶

• The DC program was specifically designed to hold the public school system financially harmless, which the authors argue could severely limit any systemic effects, positive or negative

Target Learners¶

• students in traditional public schools exposed to voucher competition
• students using vouchers to attend private schools

Target Learning Objectives¶

• academic achievement as measured by standardized test scores
• opportunities to attend racially integrated schools

Claims¶

• Policy design details are likely critical to the effects of school choice programs [+W]

Related Theories¶

• Homeschooling research compared with research on charter schools, voucher programs, and private schools

Examples¶

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Key Sources¶

• Greene, J. P., & Winters, M. A. (2007). An evaluation of the effect of DC's voucher program on public school achievement and racial integration after one year. Catholic Education: A Journal of Inquiry and Practice, 11(1), 83-101. https://eric.ed.gov/?id=EJ1005985