Why Do Charter Schools Fail? An Analysis of Charter School Survival in New Jersey

The reasons for charter school failure may determine if charter school competition improves public education. We estimate survival regressions to assess the effects of various factors on the probability of school failure. We find that students’ test scores are the most important determinant of survival: a one standard deviation increase reduces the probability of failure by at least 72%. Higher expenditures on facilities and a longer waitlist result in smaller but significant reductions in the probability of failure. Factors like administrative and class room expenditures, total enrollment, and student demographics do not have significant effects on school survival.

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