Competition and Student Performance

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If two schools compete with each other for students and resources, will this result in stronger student outcomes? Current policy in the US and in many countries seeks to promote choice in schooling. Yet, there is little evidence to support the notion that competition promotes stronger outcomes. While competition should promote an efficient use of resources, there can be a downside to this competition if it results in a greater sorting of students along dimensions that would hurt some student outcomes (e.g., sorting based on ability). This article examines the difficulties researchers face when trying to disentangle a competitive effect and summarizes the current research on this topic. The findings are mixed. Limited evidence is suggestive that competition has a modest positive effect on resource allocation and student performance.

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Abigail Payne is a professor of economics at McMaster University. She is the director of the Public Economics Data Analysis Laboratory and held a Canada Research Chair in Public Economics from 2003 to 2008. Dr. Payne’s research on educational issues includes studies of choice in publicly funded education, the effects of school district consolidation on student performance, and the determinants of successful transitions from high school to university. Dr. Payne has also studied issues in the areas of charitable organizations, political economy, and law and economics.

Dr. Payne received a PhD from Princeton University, a JD from Cornell University, and a BA from Denison University. She has published in top economics and multidisciplinary journals. She is an associate editor at the Economic Journal, a fellow-in-Residence at the CD Howe Institute, and has served on the board of directors of the American Educational Finance Association. Previously, Dr. Payne received a National Academy of Education/Spencer Foundation Postdoctoral Fellowship for her research on higher education issues. She has received research grants from the National Science Foundation, Andrew Mellon Foundation, Social Sciences and Humanities Research Council of Canada, the Canadian Foundation for Innovation, the Joyce Foundation, and the Ontario Innovation Trust.

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