Mobility, Targeting, and Private-School Vouchers

TLDR

The study uses general‑equilibrium simulations to examine how residential mobility affects the outcomes of various private‑school voucher policies. The authors employ a three‑district general‑equilibrium model calibrated to New York data, incorporating heterogeneous housing stocks across low‑, middle‑, and high‑income districts. The model shows that district‑targeted vouchers have effects comparable to nontargeted vouchers but differ markedly from low‑income‑targeted vouchers, and that strong migration effects can substantially enhance the equity outcomes of voucher programs. JEL codes: I22, I28, H73.

Abstract

This paper uses general-equilibrium simulations to explore the role of residential mobility in shaping the impact of different private-school voucher policies. The simulations are derived from a three-district model of low-, middle-, and high-income school districts (calibrated to New York data) with housing stocks that vary within and across districts. In this model, it is demonstrated that school-district targeted vouchers are similar in their impact to nontargeted vouchers but vastly different from vouchers targeted to low-income households. Furthermore, strong migration effects are shown to significantly improve the likely equity consequences of voucher programs. (JEL I22, I28, H73)