Competitive effects of means-tested school vouchers

We use the introduction of a means-tested voucher program in Florida to examine whether increased competitive pressure on public schools affects students' test scores. We find greater score improvements in the wake of the program introduction for students attending schools that faced more competitive private school markets prior to the policy announcement, especially those that faced the greatest financial incentives to retain students. These effects suggest modest benefits for public school students from increased competition. The effects are consistent across several geocoded measures of competition and isolate competitive effects from changes in student composition or resource levels in public schools.