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The For-Profit and Nonprofit Competitive Behavior of Educational Management Organizations

Sat, April 9, 10:35am to 12:05pm, Convention Center, Floor: Level Two, Room 209 C

Abstract

This study explores the differences in management and operation of schools operated by either for-profit or nonprofit education management organizations (EMOs). Particular attention is given to differences in curriculum, student demographics, location, and academic performance. The study addresses three fundamental questions (1) “Does the policy of introducing choice and competition through EMO schools improve school options for curricular improvement?”;(2) “How does the policy of choice and competition shape the demographic characteristics of EMO schools?”; and (3) “Are EMOs producing gains in achievement?” Our results are in line with Weisbrod’s framework on profit-maximizing and mission-oriented organizations, suggesting that competitive incentives have no systematic impact on EMO schools in terms of curriculum, location, demographics, and quality of educational options across geographic areas.

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