Testing the Effectiveness of “Managing for Results”: Evidence from an Education Policy Innovation in New York City

“Managing for results” (MFR) is a performance management system that decentralizes authority to managers in exchange for greater accountability in performance. Although MFR makes much theoretical sense, the evidence of the effectiveness of MFR has not been as conclusive. In this study, we use panel data methods to examine the impact of a particular MFR reform in New York City, the Empowerment Zone (EZ), which focused on providing city public school principals greater autonomy to improve school outcomes. In addition, we use objective measures of both performance management and organizational performance. Our differences-in-differences estimates suggest that the EZ had a significant and positive effect on school performance as measured by proficiency rates in standardized mathematics exams, overall performance, and Regents diploma graduation rates, though the effects were not immediately apparent.

Assessing the Incidence and Efficiency of a Prominent Place Based Policy

This paper empirically assesses the incidence and efficiency of Round I of the federal urban Empowerment Zone (EZ) program using confidential microdata from the Decennial Census and the Longitudinal Business Database. Using rejected and future applicants to the EZ program as controls, we find that EZ designation substantially increased employment in zone neighborhoods and generated wage increases for local workers without corresponding increases in population or the local cost of living. The results suggest the efficiency costs of first Round EZs were relatively modest. (JEL H26, H77, J31, R23, R58)