Susan M. Dynarski

Accountability and Flexibility in Public Schools: Evidence from Boston's Charters And Pilots

Charter schools are publicly funded but operate outside the regulatory framework and collective bargaining agreements characteristic of traditional public schools. In return for this freedom, charter schools are subject to heightened accountability. This paper estimates the impact of charter school attendance on student achievement using data from Boston, where charter schools enroll a growing share of students. We also evaluate an alternative to the charter model, Bostons pilot schools. These schools have some of the independence of charter schools, but operate within the school district, face little risk of closure, and are covered by many of same collective bargaining provisions as traditional public schools. Estimates using student assignment lotteries show large and significant test score gains for charter lottery winners in middle and high school. In contrast, lottery-based estimates for pilot schools are small and mostly insignificant. The large positive lottery-based estimates for charter schools are similar to estimates constructed using statistical controls in the same sample, but larger than those using statistical controls in a wider sample of schools. The latter are still substantial, however. The estimates for pilot schools are smaller and more variable than those for charters, with some significant negative effects.

Building the Stock of College-Educated Labor

Half of college students drop out without completing a degree. This paper establishes a causal link between college costs and degree completion. I use quasi-experimental methodology to analyze two state scholarship programs. The programs increase the share of the exposed population with a college degree by three percentage points, with stronger effects among women. A cost-benefit analysis indicates that the programs are socially efficient at rates of return to schooling as low as 5 percent. Even with the offer of free tuition, many students continue to drop out, suggesting tuition costs are not the only impediment to college completion.

Financial aid policy: lessons from research.

In the nearly fifty years since the adoption of the Higher Education Act of 1965, financial aid programs have grown in scale, expanded in scope, and multiplied in form. As a result, financial aid has become the norm among college enrollees. Aid now flows not only to traditional college students but also to part-time students, older students, and students who never graduated from high school. Today aid is available not only to low-income students but also to middle- and even high-income families, in the form of grants, subsidized loans, and tax credits. The increasing size and complexity of the nation’s student aid system has generated questions about effectiveness, heightened confusion among students and parents, and raised concerns about how program rules may interact. In this article, Susan Dynarski and Judith Scott-Clayton review what is known, and just as important, what is not known, about how well various student aid programs work. The evidence, the authors write, clearly shows that lowering costs can improve college access and completion. But this general rule is not without exception. First, they note, the complexity of program eligibility and delivery appears to moderate the impact of aid on college enrollment and persistence after enrollment. Second, for students who have already decided to enroll, grants that tie financial aid to academic achievement appear to boost college outcomes such as persistence more than do grants with no strings attached. Third, compared with grant aid, relatively little rigorous research has been conducted on the effectiveness of student loans. The paucity of evidence on student loans is particularly problematic both because they represent a large share of student aid overall and because their low cost (relative to grant aid) makes them an attractive option for policy makers. Future research is likely to focus on several issues: the importance of program design and delivery, whether there are unanticipated interactions between programs, and to what extent program effects vary across different types of students. The results of this evidence will be critical, the authors say, as politicians look for ways to control spending.

The Missing Manual: Using National Student Clearinghouse Data to Track Postsecondary Outcomes.

This article explores the promises and pitfalls of using National Student Clearinghouse (NSC) data to measure a variety of postsecondary outcomes. We first describe the history of the NSC, the basic structure of its data, and recent research interest in using NSC data. Second, using information from the Integrated Postsecondary Education Data System (IPEDS), we calculate enrollment coverage rates for NSC data over time, by state, institution type, and demographic student subgroups. We find that coverage is highest among public institutions and lowest (but growing) among for-profit colleges. Across students, enrollment coverage is lower for minorities but similar for males and females. We also explore two potentially less salient sources of non-coverage: suppressed student records due to privacy laws and matching errors due to typographic inaccuracies in student names. To illustrate how this collection of measurement errors may affect estimates of the levels and gaps in postsecondary attendance and persistence, we perform several case-study analyses using administrative transcript data from Michigan public colleges. We close with a discussion of practical issues for program evaluators using NSC data.

Simplifying Tax Incentives and Aid for College: Progress and Prospects

The application for federal student aid is longer than the tax returns filled out by the majority of US households. Research suggests that complexity in the aid process undermines its effectiveness in inducing more students into college. A previous Tax Policy and the Economy paper showed that most of the data items in the aid application did not affect the distribution of aid and that the much shorter set of variables available in IRS data could be used to closely replicate the existing distribution of aid. This added momentum to a period of discussion and activity around simplification in Congress and the US Department of Education. In this article, we provide a 5-year retrospective of what has changed in the aid application process, what has not, and the possibilities for future reform. While there has been some streamlining in the process of applying for aid, it has fallen far short of its goals. Two dozen questions were removed from the aid application and a dozen added, reducing the number of questions from 127 to 116. Funding for college has also been complicated by the growth of a parallel system for aid: the tax system. A massive expansion in federal tax incentives for college, in particular the American Opportunity Tax Credit, has led to millions of households completing paperwork for both the IRS and the US Department of Education in order to qualify for college funding.

Cheaper by the Dozen: Using Sibling Discounts at Catholic Schools to Estimate the Price Elasticity of Private School Attendance

The effect of vouchers on sorting between private and public schools depends upon the price elasticity of demand for private schooling. Estimating this elasticity is empirically challenging because prices and quantities are jointly determined in the market for private schooling. We exploit a unique and previously undocumented source of variation in private school tuition to estimate this key parameter. A majority of Catholic elementary schools offer discounts to families that enroll more than one child in the school in a given year. Catholic school tuition costs therefore depend upon the interaction of the number and spacing of a familys children with the pricing policies of the local school. This within-neighborhood variation in tuition prices allows us to control for unobserved determinants of demand with a set fine geographic group fixed effects while still identifying the price parameter. We analyze this variation by using data on over 3700 school tuition schedules collected from Catholic schools around the nation, matched to restricted Census data that identifies precise location that can be matched to the nearest Catholic school. We find that a standard deviation decrease in tuition prices increases the probability that a family will send its children to private school by one half percentage point, which translates into an elasticity of Catholic school attendance with respect to tuition costs of -0.19. Our subgroup results suggest that a voucher program would disproportionately induce into private schools those who, along observable dimensions, are unlike those who currently attend private school.

The Gap Within the Gap

Gaps in educational achievement between high- and low-income children are growing. Administrative data sets maintained by states and districts lack information about income but do indicate whether a student is eligible for subsidized school meals. We leverage the longitudinal structure of these data sets to develop a new measure of economic disadvantage. Half of eighth graders in Michigan are eligible for a subsidized meal, but just 14% have been eligible for subsidized meals in every grade since kindergarten. These children score 0.94 standard deviations below those who are never eligible for meal subsidies and 0.23 below those who are occasionally eligible. There is a negative, linear relationship between grades spent in economic disadvantage and eighth-grade test scores. This is not an exposure effect; the relationship is almost identical in third-grade, before children have been exposed to varying years of economic disadvantage. Survey data show that the number of years that a child will spend eligible for subsidized lunch is negatively correlated with her or his current household income. Years eligible for subsidized meals can therefore be used as a reasonable proxy for income. Our proposed measure can be used to estimate heterogeneous effects in program evaluations, to improve value-added calculations, and to better target resources.

Estimating the Effects of a Large For-Profit Charter School Operator

In this paper, we leverage randomized admissions lotteries to estimate the impact of attending a National Heritage Academy (NHA) charter school. NHA is the fourth largest for-profit charter operator in the country, enrolling more than 56,000 students in 86 schools across 9 states. Unlike several of the other large for-profit companies that operate virtual charters, NHA only has standard bricks-and-mortar schools. Our estimates indicate that attending a NHA charter school for one additional year is associated with a 0.04 standard deviation increase in math achievement. Effects on other outcomes are smaller and not statistically significant. In contrast to most prior charter school research that finds the largest benefits for low-income, underrepresented minorities in urban areas, the benefits of attending an NHA charter network are concentrated among non-poor students attending charter schools outside urban areas. Using data from a survey of school administrators in traditional public and charter schools, we document several aspects of school organization, culture and instructional practice that might explain these positive effects.

Tax Benefits for College Attendance

National efforts to promote college enrollment are increasingly delivered through tax-based assistance, including tax credits and deductions for tuition and fees, tax-advantaged college savings plans, and student loan interest deductions. This paper outlines the main tax-based student aid programs and describes their history and growth over time. We then provide an economic perspective on tax-based student aid, and an assessment of their impact on student behavior. We conclude with a discussion of what the tax system does particularly well and what it does particularly poorly in comparison to traditional Department of Education-based student aid programs, and highlight opportunities for productive reform. At a minimum, a simpler system of education tax benefits would decrease the administrative and time costs of transferring funds to households with postsecondary expenses. At best, simplification would clarify incentives and increase investments in human capital.