Does School Choice Increase School Quality? Evidence from North Carolina Charter Schools

Federal “No Child Left Behind” legislation, which enables students of low-performing schools to exercise public school choice, exemplifies a widespread belief that competing for students will spur public schools to higher achievement. We investigate how the introduction of school choice in North Carolina, via a dramatic increase in the number of charter schools, affects student performance on statewide end-of-year testing at traditional public schools. We find test score gains from competition that are robust to a variety of specifications. Charter school competition causes an approximately one percent increase in the score, which constitutes about one quarter of the average yearly growth.