differences autonomy included “efficiency” outcomes better generate
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esearch on charter schools will not be realized. We test this hypothesis through an examination of<br />
the rate of return per tax dollar invested in each Milwaukee school type.<br />
II. Individual School Analysis on Efficiency<br />
a. Methodology<br />
The first step is to calculate an efficiency score for every school. In order to do this, we need an outcome<br />
measure that is utilized in every school and is comparable across schools. The 2014-15 administration<br />
of the Wisconsin Knowledge and Concepts Exam (WKCE) and the Badger Exam meets<br />
this criteria. The WKCE was the primary standardized test used for assessing Wisconsin students<br />
through the 2012-13 school year. For the year of our analysis, the WKCE began to be phased out in<br />
favor of the Badger Exam, which <strong>better</strong> aligned with new federal Common Core standards. For 2014-<br />
2015, students took the WKCE for science and the Badger Exam for math. While these separate<br />
tests do not allow for comparability across academic subjects, they are reasonable for the comparisons<br />
within tests which we utilize here. Because the WKCE was taken in 4th, 8th, and 10th grade,<br />
we only use the 4th and 8th grade results from the Badger Exam to increase comparability as much<br />
as possible. 16<br />
WKCE scores are reported by the Department of Public Instruction in four categories: “minimal performance,”<br />
“basic,” “proficient,” and “advanced.” We create a four-point scale from these categories<br />
where ‘1’ is equivalent to “minimal performance” and ‘4’ is equivalent to “advanced.” These scores<br />
are then averaged across the students in the school who participated in the exam.<br />
Our main independent variables are several binary variables that take on a value of ‘1’ or ‘0’ for<br />
school type (instrumentality charter, non-instrumentality charter, and independent charter). Analysis<br />
#1 uses this information to create efficiency scores at the individual school level. This school-level<br />
efficiency score is the average of Badger Exam scores at the school divided by the level of funding<br />
that school receives, which is determined by school type.<br />
In order to ensure that we are making ‘apples to apples’ comparisons, in Analysis #2, we include<br />
a number of control variables that could plausibly offer alternative explanations for student performance.<br />
These variables that we control for include the grade level of the students (4th, 8th or 10th<br />
grade), the percentage of the students in the school who are non-white, the percentage of the student<br />
in the school receiving free or reduced lunch, and the percentage of the students in the school who<br />
are English language learners. Disabled students take a separate version of the WKCE and Badger<br />
Exam, and are excluded from these analyses. An efficiency score by school type is calculated<br />
through a two-step process in Analysis #2.<br />
First, our key variables highlighted above are regressed on the school’s average exam score in each<br />
grade level studied:<br />
(1)<br />
The coefficient estimates are interpreted as relative to the excluded baseline group, traditional public<br />
Bang for the Buck<br />
8