Can school competition improve standards? The case of faith schools in England

This paper measures the extent to which the presence of religious state-funded secondary schools in England impacts on the educational experiences of pupils who attend neighbouring schools, whether through school effort induced by competition or changes in peer groups induced by sorting. National administrative data is used to estimate pupil test score growth models between the ages of 11 and 16, with instrumental variable methods employed to avoid confounding the direct causal effect of religious schools. It finds significant evidence that religious schools are associated with higher levels of pupil sorting across schools, but no evidence that competition from faith schools raises area-wide pupil attainment.