Free to Choose : Can School Choice Reduce Student Achievement?

A central argument for school choice is that families value the freedom to exercise choice and can make wise decisions. This principle may underlie why lottery-based school evaluations, which exploit over-subscription due to excess demand, have almost always reported positive or zero achievement effects. This paper reports on a striking empirical counterexample to these results. We evaluate the Louisiana Scholarship Program (LSP), a school voucher plan providing public funds for disadvantaged students to attend private schools of their choice. We exploit random assignment of LSP vouchers at oversubscribed private schools to estimate the program's effects on test scores. LSP participation substantially reduces academic achievement: attendance at an LSP-eligible private school lowers math scores by 0.4 standard deviations and increases the likelihood of a failing math score by 50 percent. Voucher effects for reading, science and social studies are also negative and large. Participating private schools charge below-average tuition, and the program's negative math effects are concentrated among participating schools with lower tuition. Negative voucher effects may be due in part to selection of low-quality private schools into the program