The Effect of Educational Vouchers on Academic and Non-academic Outcomes: Experimental Evidence from a Natural Experiment

Case Western Reserve University, Cleveland OH

Investigators

Abstract

Educational vouchers are one of the most hotly contested policies for improving the educational opportunities of disadvantaged students. The research presents new evidence on the effects of educational vouchers on recipients. Data for this research come from the Children's Scholarship Fund (CSF) of Toledo, Ohio. CSF offers 4-year renewable, private school scholarships to low income, K-8th grade students in Northwest Ohio. Between 1998 and 2001, almost 4,000 families applied for CSF scholarships, and CSF awarded more than 1,500 scholarships by lottery. The study improves on existing research in two distinct ways. First, since CSF administered the scholarships randomly, unsuccessful applicants provide an unbiased control group for voucher recipients. Second, whereas most voucher research relies strongly on test scores to measure educational outcomes, this study develops means to assess both academic proficiency and behavioral characteristics that schools may influence. Some of the outcome measures (e.g. test scores, school attendance, disciplinary problems, grade retention, parental involvement and educational attitudes) in the study are similar to other previous research on educational vouchers. This study introduces also decision-making experiments as a means of measuring voucher and private schooling effects on personal characteristics, including overconfidence, generosity/altruism, patience and trust. The inclusion of non-cognitive behavioral outcomes moves research beyond test scores to measure the effect of schooling on the development of "behavioral and personality traits." Recent literature argues that these behavioral characteristics influence economic development and prosperity. If the study finds that voucher recipients are less overconfident, more generous, more patient and/or more trusting, then it may suggest that vouchers and private schooling help students to become less overconfident, more generous, more and/or more patient. If this study finds that private schools and vouchers affect these behaviors in students, then researchers and policymakers may have to reevaluate cost/benefit analyses of private schools and vouchers based on test scores alone.