The privatization and marketization of US schooling

Abstract

This paper describes the trend towards the privatization and marketization of US schooling across three domains. We begin by describing the trend in recent pro-market policy reforms — proposed or enacted — to US schooling. This reform trend can be explained in terms of the growing importance of economic theory and economic evidence in social and political discourse. Briefly, we review mainstream economic theory and evidence to see what general lessons can be drawn, with a focus on productive efficiency. In the main section of the paper, we look at the direct evidence for US schooling not only in terms of the productive efficiency of schools, but also equity in schools, freedom of choice for parents and students, and the social cohesion produced by schools. Our review reaches a number of conclusions which suggest that the trend toward privatization and marketization may generate greater productive efficiency. Although the economic analysis is deficient in several ways and may have limited pertinence for social goods such as education, it highlights the need for strong and effective systems of accountability. Regardless of whether the advantages outweigh the disadvantages, however, it may be difficult to prevent further steps toward marketization.