New Study: “charter schools have no impact on test scores and a negative impact on earnings”

Charter Schools and Labor Market Outcomes ∗ Will Dobbie Roland G. Fryer

Princeton University and NBER Harvard University and NBER July 2016

Abstract

We estimate the impact of charter schools on early-life labor market outcomes using admin- istrative data from Texas. We find that, at the mean, charter schools have no impact on test scores and a negative impact on earnings. No Excuses charter schools increase test scores and four-year college enrollment, but have a small and statistically insignificant impact on earnings, while other types of charter schools decrease test scores, four-year college enrollment, and earn- ings. Moving to school-level estimates, we find that charter schools that decrease test scores also tend to decrease earnings, while charter schools that increase test scores have no discernible impact on earnings. In contrast, high school graduation effects are predictive of earnings effects throughout the distribution of school quality. The paper concludes with a speculative discussion of what might explain our set of facts.

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