Association for Public Policy Analysis & Management

The theory of charter schools argues that decentralized hiring will facilitate school improvement. Free from the constraints of collective bargaining and public employee protections, charter schools can, in theory, hire staff based on substantive qualifications and commitment, dismiss employees based on performance, and adjust compensation to align with organizational goals. As the share of charter schools in large urban districts expands, there is initial evidence that hiring practices at charter schools are different from traditional public schools (e.g. Cannata, 2011), but dismissal practices (Cowen & Winters, 2013) and compensation strategies (Lincove, Barrett, and Strunk, 2016) are surprisingly similar in comparative studies of district and charter settings. Based on current evidence, it is unclear if decentralization to charter management triggers the human capital changes envisioned by charter advocates (Chubb & Moe, 1990).

In this study, we examine teacher hiring, compensation, and retention in New Orleans during a ten-year transition from bureaucratic control to decentralized charter management. Between 2006 and 2016, almost all New Orleans traditional public schools were contracted to charter management organizations. We use these transition points to measure the impact of decentralization on staffing, compensation, and retention of principals and teachers. Our longitudinal employment data include additional transitions as start-up charter schools also opened, and many schools were either closed or changed management during this period. Longitudinal analysis will estimate the effects of district to charter and other transitions on human capital in the system, providing important new evidence on the differences in employment practices between district and charter schools. Initial results suggest that charter transitions trigger new hiring of a less-experienced, more transient workforce. The accompanying reduction in teacher salary costs is often offset by larger salaries to retain principals over time. There is little evidence that the transition to charters triggers human capital policies that are more responsive to employee performance.