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This paper considers whether high schools in competitive environments use grade inflation to attract and retain families, perhaps in addition to more constructive responses. Two measures of grade inflation are used: the cutoffs used by each school to assign a letter grade to a percent score; and high school GPA after controlling for test scores, a rich set of student and school characteristics, and (for a subset) college GPA. Two measures of competition are used: the enrollment-based concentration of school districts in metropolitan areas, and an instrument for this concentration. In both OLS and IV, increased competition significantly affects grade cutoffs: a one standard deviation increase in competition results in about a 0.12 to 0.18 standard deviation fall in the grade cutoffs (ceteris paribus, lower cutoffs yield higher grades). However, in both OLS and IV, competition does not significantly affect the actual assigned grades as measured by GPA. This pattern of results suggests that school administrators under competitive pressure may ease grade standards, but that teachers may re-adjust their scoring to leave actual grades relatively unchanged. (Contains 7 tables, 1 figure and 4 footnotes.)

This report focuses on the initial design, implementation and baseline results of the five-year Longitudinal Educational Growth Study (LEGS) of the Milwaukee Parental Choice Program (MPCP) being conducted by the School Choice Demonstration Project (SCDP). The LEGS will be the first evaluation of the participant effects of the MPCP using student-level data to be implemented since the initial pilot program expanded dramatically in 1995. Included this initial report are baseline descriptions of achievement tests for a representative sample of MPCP students in grades 3 through 9, as well as outcomes for comparable samples of students in Milwaukee Public Schools (MPS). Also included are a descriptive analysis of survey results of MPCP parents and a carefully matched sample of MPS parents as well as a brief description of the results of student surveys for both samples. The first section of the baseline report discusses the construction of a sample of 2,727 MPCP students in grades 3-9. The report also discusses the selection of 2,727 similar Milwaukee Public School students. For both samples the core of this longitudinal study will be to track the educational progress across the two samples through school year 2011-12. We demonstrate that the sample of MPS students constructed by the SCDP is more similar to the representative MPCP sample along demographic and initial achievement criteria than other potential comparison groups of MPS students. The baseline results indicate that MPCP students in grades 3 to 5 are currently scoring slightly lower on the math and reading portions of the Wisconsin Knowledge and Concepts Examinations (WKCE) than their MPS counterparts. However, no such difference exists for students in grades 6 to 8. Benchmark Test results for 9th graders are also similar between the two groups. The differences in grades 3 to 5 are almost exclusively due to lower MPCP math scores that disappear in grades 6 to 8. According to our surveys of parents and students, MPCP parents had lower incomes, but higher levels of education than MPS parents. The two groups were also quite similar on how they learned of their child's school and the qualities they sought in schools. A key difference was that MPCP parents got more information from churches and valued religious instruction more than MPS parents. In both groups, over 70 percent of students were attending their parents' first choice of schools. Both MPCP and MPS parents and students showed high levels of satisfaction with their schools--in some cases higher than national averages. However, MPCP parents and students were generally more positive about their schooling experience than their counterparts in MPS. MPCP parents were less likely to report problems at school such as school violence, and had slightly higher educational expectations for their children, than comparable MPS parents. Students were also very positive about their schools, differing only slightly in their evaluation of their school climate depending on whether they were in the MPCP or MPS. Five appendices are included: (1) Description of the Study Mandate; (2) Constructing the Sample for Study; (3) Data Collection Procedures and Protocols; (4) Parental Survey Tables; and (5) Student Survey Tables. (Contains 2 figures, 6 tables and 16 footnotes.)

The greatest limitation in establishing causality in observational studies on the effect of financial aid is the presence of endogeneity or selection bias associated with aid status. To control for this statistical confoundedness that besets the research corpus to date, this study estimates the effect of financial aid on freshmen retention at a moderately selective, public university using propensity score-matching in multi-stage regression analyses. The correlational pattern that emerged from twenty-four logit models suggests higher-income students accrue a retention benefit from financial aid, unlike low-income students, net of first-year academic experience and type and amount of aid received. Conversely, retention of low-income freshmen is more likely due to academic performance compared to those from high-income background. Findings on the effect of aid are consistent with the economics of moral hazard and unobservable behavior. (Contains 6 footnotes, 8 tables, and 2 figures.)

Econometric cost functions have begun to appear in education adequacy cases with greater frequency. Cost functions are superficially attractive because they give the impression of objectivity, holding out the promise of scientifically estimating the cost of achieving specified levels of performance from actual data on spending. By contrast, the opinions of education stakeholders form the basis of the most common approach to estimating the cost of adequacy, the professional-judgment method. The problem is that education cost functions do not in fact tell us the cost of achieving any specified level of performance. Instead, they provide estimates of average spending for districts of given characteristics and current performance. It is a huge and unwarranted stretch to go from this interpretation of regression results to the claim that they provide estimates of the minimum cost of achieving current performance levels, and it is even more problematic to extrapolate the cost of achieving at higher levels. In this paper we review the cost function technique and provide evidence that draws into question the usefulness of the cost function approach for estimating the cost of an adequate education. (Contains 28 footnotes and 7 figures.) [Funding for this paper was provided by the Missouri Show-Me Institute.]

School quality and grade completion by students are shown to be directly linked, leading to very different perspectives on educational policy in developing countries. Unique panel data on primary school age children in Egypt permit estimation of behavioral models of school leaving. Students perceive differences in school quality, measured as expected achievement improvements in a given school, and act on it. Specifically, holding constant the student's own ability and achievement, a student is much less likely to remain in school if attending a low quality school rather than a high quality school. This individually rationale behavior suggests that common arguments about a trade-off between quality and access to schools may misstate the real issue and lead to public investment in too little quality. Further, because of this behavioral linkage, there is an achievement bias such that common estimates of rates of return to years of school will be overstated. The paper demonstrates the analytical importance of employing output-based measures of school quality. (Contains 29 footnotes.)

Substantial uncertainty exists about the impact of school quality on the black-white achievement gap. Our results, based on both Texas Schools Project (TSP) administrative data and the Early Childhood Longitudinal Survey (ECLS), differ noticeably from other recent analyses of the black-white achievement gap by providing strong evidence that schools have a substantial effect on the differential. The majority of the expansion of the achievement gap with age occurs between rather than within schools, and specific school and peer factors exert a significant effect on the growth in the achievement gap. Unequal distributions of inexperienced teachers and of racial concentrations in schools can explain all of the increased achievement gap between grades 3 and 8. Moreover, non-random sample attrition for school changers and much higher rates of special education classification and grade retention for blacks appears to lead to a significant understatement of the increase in the achievement gap with age within the ECLS and other data sets. (Contains 20 tables, 2 figures and 42 footnotes.) An appendix is included which develops the decomposition presented in equation (1). [Support for this work has been provided by the Packard Humanities Institute.]

Social promotion has long been the normal practice in American schools. Critics of this practice, whereby students are promoted to the next grade regardless of academic preparation, have suggested that students would benefit academically if they were made to repeat a grade. Supporters of social promotion claim that retaining students (i.e, holding them back) disrupts them socially, producing greater academic harm than promotion would. A number of states and school districts, including Florida, Texas, Chicago, and New York City, have attempted to curtail social promotion, by requiring students to demonstrate academic preparation on a standardized test before they can be promoted to the next grade. This study analyzes the effects of Florida's test-based promotion policy on student achievement two years after initial retention. It builds upon our previous evaluation of the policy in two ways. First, we examine whether the initial benefits of retention observed in the previous study continue, expand, or contract in the second year after students are retained. Second, we determine whether discrepancies between our evaluation and the evaluation of a test-based promotion policy in Chicago are caused by differences in how researchers examined the issue, or by differences in the nature of the programs. Our analysis shows that, after two years of the policy, retained Florida students made significant reading gains relative to the control group of socially promoted students. These academic benefits grew substantially from the first to the second year after retention. That is, students lacking in basic skills who are socially promoted appear to fall further and further behind over time, whereas retained students appear to be able to catch up on the skills they are lacking. Further, we find these positive results in Florida, both when we use the same research design that we used in our previous study, and when we use a design similar to that employed by the evaluation of the program in Chicago. The differences between the Chicago and Florida evaluations appear to be caused by differences in the details of the programs, and not by differences in how the programs were evaluated. (Contains 5 tables and 10 footnotes.)

In response to the rapid rise in court cases related to the adequacy of school funding, a variety of alternative methods have been developed to provide an analytical base about the necessary expenditure on schools. These approaches have been titled to give an aura of a thoughtful and solid scientific basis: the professional judgment model, the state-of-the-art approach, the successful schools method, and the cost function approach. Unfortunately, none can provide a reliable and unbiased answer to the question "how much do adequate schools cost?" Each is highly manipulable, generally satisfying the interested party commissioning the work to be done but not meeting the fundamental tenets of scientific inquiry. This paper reviews and critiques the methodology as applied in a substantial number of states. (Contains 43 endnotes.)

We consider the question whether pupils from the lower social strata perform better in private government-dependent schools than in public or private-independent schools, using the PISA 2000 data on European high schools. In the eighty's, Coleman and Hoffer (1987) found in the USA that the performance of these pupils was better at religious schools than at comparable public schools. Dronkers and Robert (2003) found in PISA-data for 19 comparable countries that private government-dependent schools are more effective then comparable public schools, also after controlled for characteristics of pupils and parents and the social composition of the school. The main explanation appeared to be a better school climate in private government-dependent schools. Private independent schools were less effective than comparable public schools, but only after controlling for the social composition of the school. As a follow-up we now investigate, again with the PISA-data of these 19 countries, whether this positive effect of private government-dependent schools differs between pupils from different strata. We use various indicators to measure social strata: social, cultural and economic. We expect that the thesis of Coleman & Hoffer does hold for private government-dependent schools, because in these 19 countries they are mostly religious schools, which have more opportunities to form functional communities and create social capital. But for private independent schools, which due to their commercial foundation are less often functional communities, this relation is not expected to hold. However, the results show that public and private schools have mostly the same effects for the same kind of pupils and thus mostly not favor one kind of pupils above another kind of pupils. But private government-dependent schools are slightly more effective for pupils with less cultural capital. However, private independent schools are also more effective for pupils from large families or low status families. (Contains 4 tables, 12 notes and a list of 25 Literature Resources .)

Little scholarly attention has been paid to what aspiring principal are actually reading in the preparation courses or whether the texts prepare them for the demands of accountable management. We examine eleven of the thirteen most commonly assigned educational administration texts in a sample of 210 principal preparation syllabi. In the texts studied, of thirteen terms tracked, "performance" and/or "achievement" were the most commonly used, appearing 44.3 times per 100 pages of text. Meanwhile, the terms "efficiency," "accountability," and "termination/dismissal" were mentioned less than six times per 100 pages. The texts generally encourage the use of data but are more skeptical when it comes to using results to make tough management decisions. Three possible approaches to enhancing the content of preparation are proposed: authors broadening discussion in existing texts, publishers issuing new texts, or faculty taking steps to diversify their assigned readings. (Contains 8 tables and 5 footnotes.)