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Author: Clive R. Belfield and Henry M. Levin <Now published in (2002) Review of Educational Research, 72(2), 279-341 > This paper systematically reviews the cross-sectional research evidence on the effects of competition on educational outcomes. Competition is typically measured using either the Herfindahl Index or the enrollment rate at an alternative choice (e.g. private school). Outcomes are separated into those relating to academic test scores, graduation/attainment, expenditures/efficiency, teacher quality, wages, and house prices. The sampling strategy identifies over 35 empirical studies testing the effects of competition. A sizable majority of these studies report beneficial effects of competition across all outcomes, with many reporting statistically significant coefficients. The effect size of an increase of competition by one standard deviation is also reported. These effect sizes suggest positive gains from competition that are modest in scope with respect to feasible changes in levels of competition. Finally, this review notes some methodological challenges in estimating competitive pressures, as well as cautions on the validity of inference from point estimates to public policy. Click here to view publication as a PDF  Click here to email a PDF |
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