School management and efficiency: An assessment of charter vs. traditional public schools

Abstract

Publicly funded private schools, also known as charter schools in some countries, are an increasingly popular tool among ministries of education for improving school effectiveness; however, little is known about their efficiency. This study evaluates the efficiency of charter schools in Massachusetts by assessing their proficiency scores and per student spending as compared with traditional public schools. I find that charter schools outperform traditional public schools in both reading and math and that the difference is more salient in urban communities. Furthermore, urban charter schools spend significantly less per pupil than their traditional public school counterparts. Not only are charter schools outperforming traditional public schools academically, but they are doing so at a lower cost – particularly in urban communities. By introducing an efficiency component to the wider body of literature, this research explores what conditions are best suited for charter schools, taking into consideration the limited financial capabilities of underserved school districts and low-income countries.