The Role of State Education Regulation: Evidence From the Texas Districts of Innovation Statute

Abstract

School districts are traditionally subject to a variety of state regulations on educational inputs. Absent regulations, policymakers fear that districts will make inappropriate decisions. However, it is also possible that regulations hinder schools from optimizing student learning. This article tests the salience of these hypotheses by estimating the impact of the Texas District of Innovation statute, which allows districts to opt out of regulations on inputs like teacher certification and class sizes. Using web-scraped implementation data, I document widespread exemptions and variation in regulatory preferences. However, staggered difference-in-differences analyses demonstrate a limited impact of deregulation within 4 years, suggesting that deregulation alone is a relatively weak lever for spurring innovation and changing the state of education.