Description:
We investigate how school decentralization affects the supply of optional educational services by examining changes in pre-Kindergarten (pre-K) offerings in New Orleans during the transition to a majority-charter system. In this setting, pre-K will be offered only when operators perceive a benefit exceeding the gap between average cost and state subsidies. We find that the availability of public pre-K fell as decisions were decentralized to school operators. Operators cited increased enrollment and test scores as school-centric motivations for incurring the cost of pre-K. However, we find little evidence that schools received these cost-offsetting advantages. Our study provides evidence that decentralization without off-setting financial incentives can lead, as expected by theory, to reduced investments in programs that advance the broader social goals of public education. (author abstract)
Resource Type:
Reports & Papers
Publisher(s):
Country:
United States
State(s)/Territories/Tribal Nation(s):
Louisiana