Wisconsin Charter School Policy and its Effect on Private School Enrollment

Proponents of school choice policies assume that such policies will create competition between schools for nearby students. This paper discusses the differences between choice and competition in education and why the existence of choice does not necessarily translate to competition. Vouchers and charter schools have been the twin pillars of school choice-based reform. Due to the limited number of voucher programs, charter schools provide a much better case for evaluating whether choice leads to competition. This paper suggests that evaluating private school enrollment impacts of charter school enrollment sheds light on the degree to which competition is present. A significant decrease in private enrollment in response to charter schools indicates more competition; whereas, an insignificant effect indicates choice that falls short of the necessary conditions of competition. The results of this study indicate Wisconsin charter schools do not disproportionately enroll students from private schools.