Funding, school specialisation and test scores: An evaluation of the specialist schools policy using matching models

We evaluate the effect on test scores of a UK education reform which has increased funding of schools and encouraged their specialisation in particular subject areas, enhancing pupil choice and competition between schools. Using several data sets we apply matching methods to confront issues of the choice of an appropriate control group and different forms of selection bias. We demonstrate a statistically significant causal effect of the specialist schools policy on test score outcomes and test score gain. The effect peaks after 4 years, at which point the additional funding ceases. A specialisation effect occurs yielding relatively large improvements in test scores in particular subjects.