TY - JOUR AU - Hastings,Justine S. AU - Kane,Thomas J. AU - Staiger,Douglas O. TI - Parental Preferences and School Competition: Evidence from a Public School Choice Program JF - National Bureau of Economic Research Working Paper Series VL - No. 11805 PY - 2005 Y2 - November 2005 UR - http://www.nber.org/papers/w11805 L1 - http://www.nber.org/papers/w11805.pdf N1 - Author contact info: Justine S. Hastings Brown University Department of Economics 64 Waterman Street Providence, RI 02912 Tel: 203/432-3714 Fax: 203/432-6323 E-Mail: justine_hastings@brown.edu Thomas J. Kane Harvard Graduate School of Education Center for Education Policy Research 50 Church St., 4th Floor Cambridge, MA 02138 Tel: 617/496-4359 E-Mail: kaneto@gse.harvard.edu Douglas O. Staiger Dartmouth College Department of Economics HB6106, 301 Rockefeller Hall Hanover, NH 03755-3514 Tel: 603/646-2979 Fax: 603/646-2122 E-Mail: douglas.staiger@dartmouth.edu AB - This paper uses data from the implementation of a district-wide public school choice plan in Mecklenburg County, North Carolina to estimate preferences for school characteristics and examine their implications for the local educational market. We use parental rankings of their top three choices of schools matched with student demographic and test score data to estimate a mixed-logit discrete choice demand model for schools. We find that parents value proximity highly and the preference attached to a school's mean test score increases with student's income and own academic ability. We also find considerable heterogeneity in preferences even after controlling for income, academic achievement and race, with strong negative correlations between preferences for academics and school proximity. Simulations of parental responses to test score improvements at a school suggest that the demand response at high-performing schools would be larger than the response at low-performing schools, leading to disparate demand-side pressure to improve performance under school choice. ER -