Donald J Boudreaux on The Wall Street Journal has a provocative article, If Supermarkets Were Like Public Schools. He begins:
Teachers unions and their political allies argue that market forces can't supply quality education. According to them, only our existing system—politicized and monopolistic—will do the trick. Yet Americans would find that approach ludicrous if applied to other vital goods or services.
And then he does a step-by-step illustration of running supermarkets like public schools. And he ends with:
In reality, of course, groceries and many other staples of daily life are distributed with extraordinary effectiveness by competitive markets responding to consumer choice. The same could be true of education—the unions' self-serving protestations notwithstanding.
Although his illustration is well worth considering, where it falls down is the ability of consumers to evaluate goods. With respect to food, I buy according to cost and taste value. Cost is in plain sight, and I conduct my own taste experiements on different brands. There is no spin factor involved. However, what would be the evaluation criteria by which to evaluate education? If cost, does that mean that families with less income would choose to less-cost schools? That might be okay for food, but would it work well for education? What equivalent to taste is there for schools? I suppose test scores could be used, but would poor-performing private schools release test score results? And although I know quite definitely what I like with respect to taste, understanding test scores and other metrics is not as straightforward.
In fact, test scores are not the only factors influencing parental choice. For example, Lynn Bosetti (see references below) surveyed parents from 29 elementary schools in Alberta and found a variety of factors, such as Academic Reputation or Excellence, The Teachers, The Principal, Teaching Style, Good Work Habits, Self-Discipline, Critical Thinking Skills, Building Self-Esteem, Shared Values and Beliefs, Smaller Class Size, Special Programmes, Proximity to Home, and so on.
Obviously, such a variety and number of factors is more complicated than the two of cost and taste—three factors if you add in customer service. I'm not against parental choice, but the comparison between schools and supermarkets doesn't do justice to the difference in the complexity of choosing a supermarket and that of a school.
Perhaps more important than the number of factors is the lack of information for parents to make choices. According to Buckley and Schneider,
Despite the argument that if given choice parents will become more informed about the schools, critics of choice argue that education is a complex good, that it is difficult to describe in a way people understand, and that less educated parents (who can probably benefit most from any system of expanded choice) are the least able to access and analyze information. Seizing on this disjuncture of theory and reality, critics argue that given the lack of good information among “parent/ consumers” the success of choice reforms is unlikely (see e.g., Ascher, Fruchter, & Berne, 1996; Bridge, 1978; Public Agenda, 1999).
The empirical evidence shows that, in fact, parents on average have little information about their schools, and even parents residing in districts with choice programs do not have the level of information that the demand-side arguments of choice proponents would predict (Public Agenda, 1999; Schneider et al., 2000).
Schools are more difficult to evaluate, and the information in evaluating them is more difficult to find. Yet, the consequences of misevaluating a school is considerably greater than those of misevaluating supermarkets. Although there's no question that education in the U.S. needs to be improved, it's unlikely that a supermarket choice approach will actually create the market conditions necessary for improving schools.
Reference:
Bosetti, Lynn (2005). Determinants of school choice: understanding how parents choose elementary schools in Alberta. Journal of Education Policy , 19, 387-405.
Buckley, Jack, and Mark Schneider (2003). Shopping for Schools: How Do Marginal Consumers Gather Information About Schools? Policy Studies Journal, 31, .