Crowdfunding the Front Lines: An Empirical Study of Teacher-Driven School Improvement
Abstract
The US K--12 public education system has been notoriously hard to improve. Some argue new education technologies (EdTech) can help transform schools for the better. Yet, as large-scale policy reforms have had only limited success, it seems unlikely that small changes due to EdTech could have any measurable impact. In this paper, we study DonorsChoose, a nonprofit that operates a teacher crowdfunding platform. We ask whether DonorsChoose improves educational outcomes, specifically at low-income schools. Combining DonorsChoose data with data on student test scores in Pennsylvania from 2012-2013 to 2017-2018, we find an increase in the number of DonorsChoose projects funded at a school leads to higher student performance, after controlling for selection biases. For a school with zero funded projects, one funded project---of about $400 in value---translates to between 2 to 9 more students scoring basic and above in all subjects in high school and science and language arts in primary and middle school. We find this effect is driven mostly by low-income schools, indicating funded projects help close the gap in educational outcomes between students at low- versus high-income schools. Based on a textual analysis of 20,000 statements from all funded teachers describing how project resources are used, we find two channels of improvement most effective in the lowest income schools. We demonstrate that although DonorsChoose projects are small, they improve outcomes and reduce inequality because they come directly from frontline workers---teachers---who know most intimately the obstacles their students face and how to help.
Paper link: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3556208
Bio
Jun Li is an Associate Professor of Technology and Operations at Stephen M. Ross School of Business, University of Michigan. She conducts research in empirical operations management and business analytics spanning areas across revenue management and pricing, healthcare management, supply chain risks and corporate social responsibility, and public sector operations. Her current interest centers around improving the well-being of children and young adults through better education and care.
Jun has worked closely with airlines, hotels, retailers, and marketplace platforms to analyze user data and implement new pricing or inventory strategies. She is the winner of the INFORMS Revenue Management and Pricing Practice Award and the INFORMS Revenue Management and Pricing Section Award. In methodology, she specializes in causal inferences and structural estimation, and integrating economic modeling with statistical inferences. Her research has won several best paper awards including the Management Science Best Publication award and the Responsible Operations Management Best Publication award.
Jun holds a Ph.D. in Managerial Economics and Management Science from the Wharton School, University of Pennsylvania, and a Bachelor in Operations Research and Industrial Engineering from Tsinghua University, China.
