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 Niklas Smith August 2010
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Free schools: an evidence check
Executive summary
This paper reviews the substantial body of international experience on freeschools, relying as far as possible on scientifically rigorous studies, and makes thefollowing conclusions:
 
 
Free schools do not increase the cost of schooling for the taxpayer
 
 
Parents are capable of taking advantage of the choices offered by free schools,especially when the admissions system is fair and transparent
 
 
Free schools are more likely to decrease social segregation in schools than they areto increase it, compared with the status quo in England
 
 
Free schools can help rural families protect local schools from closure
 
 
Free schools will not harm pupils’ educational outcomes. Instead they are likely toimprove results, especially for pupils currently in the worst state schools
 The intention of the Coalition Government to allow parents and other civil societygroups to run publicly-funded schools (“free schools”)
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has caused vigorous debate.Unfortunately, this debate has rarely been informed by high-quality evidence. I believe thateducation policy should be evidence-based, as well as being influenced by ideology.In many of the so-called social sciences it can be difficult to make scientific statementsbecause it is impossible to carry out controlled experiments and because unknown factors canconfound results. However, there is a large body of high-quality research on schooling.Randomised trials are the accepted gold standard in medical research, but were in factpioneered by educational researchers.
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A randomised trial is one where the subjects of anexperiment are randomly divided into a treatment group and a control group. Since manyschool choice programmes around the world make free schools and voucher schemes choosepupils by ballot if they are oversubscribed, each oversubscribed school creates a naturalrandomised trial with a treatment group (the pupils who are successful in getting a place) and acontrol group (those who applied but did not get a place, so remain in a state school). Sinceboth groups
applied 
to the school, the only difference between them is their randomly-assignedballot number. So, for example, the control group will have equally high motivation andequally devoted parents as the treatment group.The next best thing to a randomised trial is a longitudinal study.
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Here the treatmentgroup (e.g. pupils in a municipality with free schools compared with those in a municipalitywithout free schools) is not randomly assigned, but to minimise the risk of confounding suchstudies compare
changes
during the study period (e.g. changes in pupil test results) rather thanthe outcome at the end of the study period. This means that the effects of the intervention (freeschool competition with municipal schools) can be separated from other factors that may affectresults, such as a nationwide improvement in teachers’ training or working conditions ordifferent levels of parental education in different municipalities. Longitudinal studies arecommon in education research.This paper will use such high-quality studies to investigate the evidence for or againstcommon criticisms of free schools, especially those made in the Liberal Democrat conferencemotion “Free Schools and Academies” to be debated at the Autumn Conference in Liverpool.
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 But first I will provide a brief history of free schools, since they have existed for longer and inmore countries than many people realise.
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A note on terminology: free schools are publicly-funded schools run by non-governmental organisations such asparents’ or teachers’ cooperatives, charities or companies. In the USA and Canada such schools are called charterschools, a term which will also be used here. Schools both funded by and run by governmental bodies (national orlocal) are referred to as state schools, public schools (in North America) or municipal schools.
 
 Niklas Smith August 2010
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A brief history of free schools
Historically mass education (as opposed to elite education) has often been provided bynon-governmental organisations. For example, the great expansion of schooling in England inthe nineteenth century began without any state involvement and was led by the British andForeign Schools Society (a non-sectarian association) and the National Society for PromotingReligious Education (effectively the education arm of the Church of England).
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Later non-conformist denominations also built and ran schools.The first free school system that has operated continuously to the present was foundedin Denmark over 150 years ago. In 1852 Christen Kold rebelled against the rote-learning inDenmark’s
Folkeskole
(public schools) by founding a free school, run by himself and theparents of its pupils. The model quickly became popular, especially in the countryside, and in1855 the Primary Education Act gave parents back the right to decide how and where theirchildren were educated.
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In 1915 the right of parents to choose their children’s school wasenshrined in the constitution. About 13% of Danish schoolchildren attend free schools today.
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 The second oldest free school system was established in the Netherlands in 1917. Herethe reason for establishment was to defuse political-religious battles over the public schoolsystem by allowing parents to choose an education in accordance with their religion withoutforcing it on others. Because of this background most Dutch free schools are run by religiousfoundations, and free schools teach three quarters of all pupils.
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When the system wasintroduced the Netherlands had a rigidly “pillarised”
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society, where Protestants, Catholics andSocialists all had largely separate social lives and social institutions. Despite having a schoolsystem that would on the face of it have entrenched this separation, pillarisation disintegratedfrom the 1960s and has now largely disappeared from Dutch society. According to a survey byBelfield and Levin, the Dutch school system performs very well in international test scorecomparisons, parental satisfaction is high and “there is little evidence to show that greatersocial divisiveness is provoked by the existence of separate school systems.”
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 The last decades of the twentieth century saw a surge in interest in free schools andschool choice, with nationwide programmes being introduced in Chile (1982), Sweden (1991-92), Hungary and the Czech Republic (1990s) and Colombia (1991).
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The first charter schoolsin the United States opened in Minnesota in 1992 and by 2006 there were about 4000 operatingin 40 states and the District of Columbia, teaching one million pupils.
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So it should be clearthat free schools are not an unproven experiment and that there is a great deal of relevantexperience to help policymakers design a good free school system for England.
Criticism 1: “Free schools create surplus places, which is a waste of resourcesin a time of austerity”
 
Whether this criticism holds depends to some extent on how school funding isdesigned. If school funding follows the pupil (as it largely does in England), surplus places donot waste taxpayers’ money since only filled places are paid for by local authorities and centralgovernment. If free schools are paid government grants towards capital costs (as in theNetherlands) then there would be an increase in public spending. However, many free schoolsystems do not give free schools capital funding but still work well.One criticism made against free schools in Sweden was that they could forcemunicipalities to increase education spending, as they would have to pay per-pupil grants tofree schools as well as large fixed costs within their own school system (municipalities inSweden are largely free to choose how to distribute funds between their own schools).
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A term used in Belgium and the Netherlands to describe vertical social segregation, i.e. segregation based onreligion rather than class. Seehttp://en.wikipedia.org/wiki/Pillarisation 
This section addresses points 1, 6 and 7 in the conference motion.
 
 Niklas Smith August 2010
3Sandström reports on three studies that address this question. Björklund et al. found noevidence that total costs either increased or decreased as a result of competition from freeschools, while Waldo found that competition from free schools improves efficiency rather thanworsening it. Sandström’s own study also suggests that competition lowers costs but he feelsthe results are not robust and so leans towards Björklund’s conclusion.
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 It is also important to point out that there are many parts of England where there iscurrently a shortage of school places, for example in primary schools in London andCambridge.
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Free schools could play a useful role in making sure that every child has a schoolplace where local authorities are unable or unwilling to provide enough new places. Indeed, inHungary and the Czech Republic researchers found that new private schools founded to takeadvantage of the voucher system were concentrated in areas where there was a shortage of places and where the state schools were of poor quality – in other words, precisely where theywere most needed.
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We can conclude that allowing non-governmental groups to set upschools with public funding does not pose a significant risk of wasting public money.
 
Criticism 2: “Free schools would make the already complex admissions systemeven more complex, so only a few pushy parents would be able to makechoices”
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The current school admissions code is 97 pages long (!), with a 43-page appeals codefor those defeated by the Byzantine admissions system.
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This is largely a consequence of giving schools some control over which pupils they choose to admit. This admissions processis a political decision, not an inevitable consequence of school choice. In Sweden free schoolshave virtually no latitude to reject pupils, and if oversubscribed they must allocate places onthe basis of existing siblings in the school, geographical proximity or time of application.
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 American charter schools are required by law to “conduct fair and open admissions, and recruitall segments of the community they serve.” When they are oversubscribed many use a ballot toallocate places.
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It is certainly possible to have a simple admissions system while alsoallowing free schools.In practice, most parents seem to be capable of making active choices when these areoffered by their school system. For example, in Edmonton (the capital and second largest cityof Alberta, Canada) the local school board abolished catchment areas and allowed pupils to goto any public school in the city, while also giving public schools much more autonomy andallowing new schools to be opened under the school board’s umbrella. 57% of pupils havemade the choice to attend a different school from their neighbourhood school, and presumablya number of pupils who do attend their nearest school made an active choice to do so.
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 The Liberal Democrat policy paper “Equity and Excellence” rightly points out thatselection does not improve standards across the education system and it is party policy to banstate-funded schools from selecting by aptitude and prevent any extension of selection byability or faith.
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The implementation of this policy along with clear admissions criteria such asthose that apply in Sweden and the USA would significantly simplify the admissions system.
There is no reason why the establishment of free schools should make admissions morecomplicated, and we can conclude that parents are able to make informed choices.
Criticism 3: “Free schools increase social divisiveness and inequity andabandon the goal of high quality education for all learners”
 
Before moving on to the effects of free schools on social segregation and inequality, itis worth pointing out that the current primary school admissions system, which usually givespriority to families living nearest to a school, is hardly fair. Researchers have repeatedly found
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This section addresses point 4 in the conference motion.
This section addresses points 2 and 5 in the conference motion.
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