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Charter Schools and Labor Market Outcomes

August 10, 2016
Estimating the impact of charter schools on early-life labor market outcomes

National Bureau of Economic Research

NBER estimates the impact of charter schools on early-life labor market outcomes using administrative data from Texas. It finds 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 earnings. Moving to school-level estimates, it finds 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.
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