The Boundaries of Competition: Examining Charter Schools’ Impact on Traditional Schools

For decades, charter schools have been promoted as a panacea for increasing competition in the educational marketplace. Supporters argue that increased choice forces neighboring schools to innovate, while opponents contend that charters “skim” students and funds away from traditional public schools (TPS). We test the two differing views by comparing academic achievement and school segregation in TPS in South Florida facing competition from charter schools compared to TPS with no competition. We find that when a charter school moves into the community, it fails to substantively change test scores or diversity of the nearby TPS, even 10 years after a charter is established.