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School choice policies are expected to generate competition that leads to organizational improvements. However, little is known about how competition operates in a rural context. The purpose of this study is to examine how school climate characteristics are linked to teachers’ perception of school competition. Using school teachers’ responses to an original survey related to the context of the work and working conditions, we find that there is a substantial amount of variation in how rural school teachers perceive competitive pressure and different aspects of school climate. Our novel school-level analysis allows us to test the relationship of local market conditions typically absent in the literature.