Inherently flawed? An analysis of private school opt-outs in a statewide educational scholarship program

Abstract

An ample supply of choice schools is integral to a robust private school choice program; however, widespread participation from private schools has proven elusive. Low participation rates have sparked an entire segment of the school choice literature focused on the supply side of school choice. In this paper, we examine previously unexplored explanations for low private school participation rates in a statewide educational scholarship program. Specifically, we analyze how private schools’ racial demographics and the racial demographics of potential choice students impact the likelihood of participation in the Alabama Educational Scholarship Program. We find that private schools previously serving the highest percentages of White students (94% +) are significantly less likely to participate than less White schools (<86%), thereby limiting the potential supply of private schools and raising new questions about the interaction of school choice and segregation.