Catholic Schools, Competition, and Public School Quality

Abstract

Competition from Catholic schools may enhance public school performance. Measuring the magnitude of this relationship, however, is complicated by the endogeneity of Catholic enrollment. For example, Catholic schools may lower public school performance by cream skimming higher performing students; Catholic schools may be more popular when public school quality is low. We use the preponderance of Catholic Church abuse arrests, convictions, and settlements as instruments for Catholic school enrollment. Recent declines in Catholic school enrollment are associated with declines in public school math performance. These results suggest that competition from Catholic schools enhances public school performance.

Keywords: competition, Catholic, public school, abuse scandal

JEL Classification: H4, I2, Z12