Abstract
This paper examines the differences in an index of standardized test performance of urban private/public school seniors by race, using a sample of 4172 students from the 1992 US National Education Longitudinal Survey. In addition to using 257 exogenous variables to control for individual traits, family background, etc., we treat both student performance and school choice as jointly endogenous in the context of a simultaneous equations model with a latent variable: school choice. We find that while White students perform marginally better in private relative to public schools, a performance gain for private school minority students was not realized. Given the additional finding that school characteristics/quality do not affect minority student performance, we conclude that 'school choice' is mostly taken advantage of by White urban residents.
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