Paul E. Peterson

The efficiency-equity trade-offs in public service delivery may be influenced by the dependency of local governments on their own resources rather than inter-governmental grants. School districts in the United States are expected both to produce human capital efficiently and to provide educational opportunity equally. To ascertain school district trade-offs, we estimate effects of revenue source on student performances in math and reading. Achievement is estimated from 225,000 observations weighted to be district representative. Estimates are made with OLS, geographic discontinuity models exploiting differences at state borders, and 2SLS models that use changes in housing prices as an instrument. For every 10 percent increase in local revenue share, achievement increases by a sizeable 0.02 to 0.06 standard deviations. Gains for students from low socio-economic backgrounds are about half those from higher ones. Both voice and exit channels moderate the efficiency-equity trade-off. Implications for federalism and state policy are discussed.

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States and districts are increasingly incorporating measures of achievement growth into their school accountability systems, but there is little research on how these changes affect the public’s perceptions of school quality. We conduct a nationally representative online survey experiment to identify the effects of providing participants with information about their local school districts’ average achievement status and/or average achievement growth. In the control group, participants who live in higher status districts tend to grade their local schools more favorably. The provision of status information does not fundamentally alter this relationship. The provision of growth information, however, reshapes Americans’ views about educational performance. Once informed, participants’ evaluations of their local public schools better reflect the variation in district growth.

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Although qualitative research suggests that school choice and other interventions are more beneficial for moderately disadvantaged than severely deprived students, the subject has barely been explored by quantitative studies with either observational or experimental designs.  We estimate experimentally the impact of a voucher offer on college attainment of poor minority students by household income and parental education. Estimates are obtained from a 1997 private, lottery-based voucher intervention in New York City.  National Student Clearinghouse provided 2017 postsecondary outcomes.  Positive impacts on moderately disadvantaged students do not extend to the severely deprived.

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Rising inequality in the United States has raised concerns about potentially widening gaps in educational achievement by socio-economic status (SES). Using assessments from LTT-NAEP, Main-NAEP, TIMSS, and PISA that are psychometrically linked over time, we trace trends in achievement for U.S. student cohorts born between 1954 and 2001. Achievement gaps between the top and bottom quartiles of the SES distribution have been large and remarkably constant for a near half century. These unwavering gaps have not been offset by improved achievement levels, which have risen at age 14 but have remained unchanged at age 17 for the past quarter century.

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To estimate whether information can close socioeconomic gaps in parents’ aspirations for their child’s postsecondary education, we administer a four-armed survey experiment to a nationally representative sample of U.S. parents. After respondents estimate costs of and returns to further education, we ask whether they prefer that their child pursue a four-year degree, a two-year degree, or no further education. Before this question is posed, the treated are first told (1) the net annual costs of pursuing a four-year and two-year degree in their state, (2) the annual returns to four-year and two-year degrees as compared to no further education in their local area, or (3) both costs and returns. We find that information lowers aspirations overall and widens socioeconomic aspiration gaps. These effects do not vary with the magnitude of error between estimated and actual costs and returns. However, we find positive impacts on aspirations among parents who think their child is academically prepared for college.

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Estimates of school voucher impacts on educational attainment have yet to explore heterogeneities in socioeconomic status among disadvantaged minority students. We theorize reasons for these heterogeneities and then estimate experimentally the differential impacts of voucher offers on college enrollment and graduation rates for minority and non-immigrant students from moderately and severely disadvantaged backgrounds. The findings are obtained from a privately sponsored, lottery-based voucher intervention in New York City that began in 1997. College enrollment and degree attainment as of the fall of 2017 were obtained from the National Student Clearinghouse. We find no significant effects of offers on minority students from severely disadvantaged backgrounds but significant effects of six to eight percentage points on those from moderately disadvantaged households. Similar results are obtained for students born of non-immigrant mothers. Some policy implications are discussed.

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Concerns about the breadth of the U.S. income distribution and limited intergenerational mobility have led to a focus on educational achievement gaps by socio-economic status (SES).  Uintertemporally linked assessments from NAEP, TIMSS, and PISA, we trace the achievement of U.S. student cohorts born between 1954 and 2001.  Achievement gaps between the top and bottom deciles and the top and bottom quartiles of the SES distribution have been large and remarkably constant for a near half century.  These unwavering gaps have not been offset by overall improvements in achievement levels, which have risen at age 14 but remained unchanged at age 17 for the most recent quarter century.  The long-term failure of major educational policies to alter SES gaps suggests a need to reconsider standard approaches to mitigating disparities.

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