Competitive Impacts of Means-Tested Vouchers on Public School Performance: Evidence from Louisiana

Abstract

Given the significant growth rate and geographic expansion of private school choice programs over the past two decades, it is important to examine how traditional public schools respond to the sudden injection of competition for students and resources. Although prior studies of this nature have been limited to Florida and Milwaukee, using multiple analytic strategies this paper examines the competitive impacts of the Louisiana Scholarship Program (LSP) to determine its achievement impacts on students in affected public schools. Serving 4,954 students in its first year of statewide expansion, this targeted school voucher program provides public funds for low-income students in low-performing public schools to enroll in participating private schools across the state of Louisiana. Using (1) a school fixed effects approach and (2) a regression discontinuity framework to examine the achievement impacts of the LSP on students in affected public schools, this competitive effects analysis reveals neutral to positive impacts that are small in magnitude. Policy implications are discussed.