The Failing Market of the Education System Under School Choice

Bicko, Autumn

The Failing Market of the Education System Under School Choice

Persistent URL

https://dspace.allegheny.edu/handle/10456/50954

Author(s)

Bicko, Autumn

Date Issued

April 3, 2020

Abstract

The purpose of this research is to analyze the outcomes and efficiency of school choice programs through the theoretical framework of market failure. School choice is a policy reform that is ever-present in current media – gaining a controversial reputation. Even though this topic is a current focus in the news, it has been the grounds for a longstanding reformation debate. From economists’ and other social scientists’ points of view, school choice is a policy that attempts to implement market theory. While generations of researchers have devoted much effort to the analysis of school choice programs, there still is no clear answer as to how school choice affects student outcomes. One consensus among researchers is that if school choice programs produce a positive effect on student achievement and outcome, it is very small. Small and even negative performance gains are common across the country’s current choice programs, which sparks a question as to what factors contribute to these failing marks. Through case study analysis of two similar voucher programs with differing success rates, the Milwaukee Parental Choice Program, and the Indiana Choice Scholarship Program, I will examine the presence of market failure through the mechanisms of negative externalities, market power, and imperfect information.

Major

Economics

Honors

Business and Economy, 2020

First Reader(s)

Nonnenmacher, Tomas W.