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A study of the impact of public school spending on postsecondary educational attainment using statewide school district refinancing in Kansas

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Abstract

This paper uses a policy change involving statewide school district refinancing in Kansas during the early 1990s to identify the relationship between per-pupil expenditure and the probability that a student will progress to higher education. Kansas’s school district refinancing was intended to equalize per-pupil expenditure conditional on a measure of cost developed by the state. This equalization process resulted in a change in spending that, although not completely exogenous, is understood well enough that an unbiased estimate of the effect of spending on students’ post-secondary destinations can be made. Since additional years of education are known to increase lifetime earnings, a simple cost-benefit analysis of a hypothetical spending increase is considered.

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... Essa tendência majoritária do meio acadêmico internacional envolto no tema começou a partir de um famoso relatório elaborado por diversos pesquisadores para o governo americano e que ficou conhecido como Relatório Coleman (Coleman et al., 1966, apud Azevedo et al., 2002McEwan, 2003;Kim, 2001;Hanushek, Rivkin, Taylor, 1996;Card, Krueger, 1996). Lançado em 1966, esse relatório causou grande controvérsia por ter rechaçado uma idéia que até então era quase um dogma: a de que haveria uma relação positiva e significativa entre os recursos educacionais e o desempenho dos alunos. ...
... O principal dos estudiosos contemporâneos de Economia da Educação que insiste claramente na ausência de correlação positiva entre o desempenho dos estudantes e o volume de recursos destinados à educação é Eric Hanushek (apud Sander, 1993;Card, Krueger, 1996;Lavy, 1998;Figlio, 1999;Alexander, 2000;Unnever, Kerckhoff, Robinson, 2000;Azevedo et al., 2002). Este pesquisador da Hoover Institution e professor da Stanford University 1 , já produziu, sozinho ou em parceria com outros pesquisadores, inúmeros estudos centrados em discussões acerca da eficiência e eficácia da educação, sempre mantendo o mesmo posicionamento quando avalia o grau de importância dos recursos destinados à educação na performance estudantil. ...
... Os estudos que nortearam o referencial teórico ora desenvolvido foram realizados nos mais diversos países e regiões do globo. A maioria deles avaliou os determinantes de desempenho escolar em cidades ou Estados norte-americanos (Aksoy, Link, 2000;Alexander, 2000;Berry, 2002;Card, Krueger, 1996;Deke, 2003;Driscoll, Halcoussis, Svorny, 2003;Figlio, 1999;Hedges, Laine, Greenwald, 1994, 1996ae 1996bHanushek, 1986Hanushek, , 1989Hanushek, Rivkin, Taylor, 1996;Iatarola, Stiefel, 2003;Jones, Zimmer, 2001;Kim, 2001;Ladd, Walsh, 2002;Loeb, Bound, 1996;Sander, 1993;Unnerver, Kerckhoff, Robinson, 2000), mas também foram encontrados estudos focalizados na realidade de países europeus (Buchel, Duncan, 1998) e de países em desenvolvimento (Lavy, Hanushek, 1993), a exemplo do Zimbábue (Nyagura, Riddel, 1993), do Brasil (Mello e Souza, 2005Azevedo et al., 2002Azevedo et al., e 2003Barros et al., 2001, Harbison, Hanushek, 1992Lockheed, Bruns, 1990), do Chile (McEwan, 2003 e da América Latina como um todo (Velez, Schiefelbein, Valenzuela, 1993), além de um estudo comparativo entre o desempenho escolar de dois sistemas educacionais (judeu e árabe) de um mesmo país (Israel), que buscou demonstrar que os recursos educacionais oferecidos aos estudantes são um determinante do desempenho acadêmico tão proeminente quanto as suas características socioeconômicas, controladas as habilidades pré-adquiridas (Lavy, 1998), e de um estudo comparativo entre 39 países, cujos resultados apontaram para o sentido contrário, isto é, o de que mais recursos educacionais não melhoram a qualidade da educação ofertada (Wö mann, 2000). ...
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O presente artigo parte de uma revisão da literatura econômica internacional sobre determinantes do desempenho escolar para extrair daí algumas respostas quanto ao real impacto dos recursos escolares no desempenho de estudantes ao redor do mundo. A leitura dos estudos disponíveis permite aferir que essas respostas variam, pois dependem da metodologia e da amostra utilizadas, alimentando uma polarização entre os que admitem e os que rejeitam a influência de insumos escolares no aprendizado. Contudo, observa-se uma relativa harmonia no tocante à importância das condições socioeconômicas e das habilidades previamente adquiridas para o desempenho estudantil, embora essas questões encontrem alguma objeção.
... Studies of Michigan school fi nance reforms in the 1990s have shown positive effects on student performance in both the previously lowest spending districts 3 and previously lower performing districts. 4 Similarly, a study of Kansas school fi nance reforms in the 1990s, which also primarily involved a leveling up of low-spending districts, found that a 20 % increase in spending was associated with a 5 % increase in the likelihood of students going on to postsecondary education (Deke 2003 ). ...
... For example, Kentucky reforms had largely faded by the mid-to late 1990s, yet Hanushek and Lindseth measure postreform effects in 2007. Similarly, in New Jersey , infusions of funding occurred from 1998to 2003(or, arguably, 2005. But Hanushek and Lindseth's window includes 6 years on the front end where little change occurred. ...
Chapter
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Over the past several decades, many states have pursued substantive changes to their state school finance systems. Some reforms have been stimulated by judicial pressure resulting from state constitutional challenges and others have been initiated by legislatures. But despite gains in school funding equity and adequacy made over the past few decades, in recent years we have witnessed a substantial retreat from equity and adequacy. This chapter builds on the national school funding fairness report annually published by the Education Law Center. We track school funding fairness (the relative targeting of funding to districts serving economically disadvantaged children) for all states from 1993 to 2012. This chapter explores in greater depth the consequences of school funding levels, distributions, and changes in specific classroom resources provided in schools. We find that states and districts applying more effort—spending a greater share of their fiscal capacity on schools—generally spend more on schools, and that these higher spending levels translate into higher staffing levels and lower class sizes as well as more competitive teacher wages.
... En tercer lugar se identifican, analizan y valoran los efectos alcanzados por la política en relación con algunos de sus principales objetivos oficiales, como la retención estudiantil mediante la compensación de costos de oportunidad o el incremento del rendimiento escolar. Los resultados obtenidos contribuyen a reforzar las hipótesis y hallazgos de anteriores investigaciones (McPherson y Schapiro, 1991;Skoufias y Parker, 2001;Deke, 2003;Monks, 2009;Cardoso y Portela Souza, 2004;Cameron, 2009;Attanasio, Meghir y Santiago, 2010;Glewwe y Kassouf, 2012). Por un lado, en sintonía con los hallazgos de este artículo, se ha revelado la existencia de impactos positivos de estos tipos de becas en las oportunidades educativas, en las posibilidades de titulación en los ciclos donde se obtiene la beca e incluso superiores, así como en el rendimiento y eficiencia académica (Legard et al., 2001;Escobar y González de la Rocha, 2002;Slavin, 2010;Dolton y Lin 2011). ...
... preuniversitarios (Skoufias y Parker 2001;Cardoso y Portela Souza, 2004;Maguire, 2008;Cameron, 2009) como universitarios (McPherson y Schapiro, 1991Deke, 2003;Monks, 2009). Dichos trabajos muestran efectos positivos de las ayudas al estudio -vía becas condicionadas a compromisos y resultados educativos, o mediante préstamos subvencionados en el caso de algunos sistemas universitarios-sobre las tasas de escolarización y graduación en diferentes sistemas educativos. ...
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This article presents the research findings of a study about becas 6000, a recent cash transfer program in Spain dependent on school enrollment and achievement of low-income students involved in non-mandatory secondary education. The study is based on secondary data analysis of the becas 6000's records and in-depth interviews with target population and administrative managers. The mechanisms and conditions of the program are presented and its idiosyncrasies in relation to similar programs in other countries are exposed. An evaluation of the strong and weak points, as well as differential effects of the program is also offered based on several objective indicators and the experiences and opinions of the scholarship recipients.
... Although in their reanalysis, they suggest that the data do not support the conclusions reached by Hanushek and others who followed, Hedges, Laine and Greenwald (1994, 1996a, 1996b emphasize that caution is needed in the use of the data set, especially if they are used for the elaboration of public policies. Card and Krueger (1996), Haurin and Brasington (1996), (Kim, 2001), Deke (2003), Haurin (2009), Baker (2016) and other researchers who have sought to carry out the same type of research in different countries believe the results presented by studies that shift the focus of curriculum performance tests onto the effects of school resources on education outcomes should be cautious. For those researchers, school performance or achievement tests alone as a measure of student performance are insufficient to measure learning. ...
Article
The analysis of educational systems involves four central dimensions: economic, pedagogical, political and cultural. This paper focuses on the economic perspective, which has gained strength with the creation of the Basic Education Development Index (Ideb), and facilitates comparative analyzes of the performance of Brazilian educational systems. This research uses a linear least squares regression in which the dependent variables were the Ideb scores of Brazilian states and the independent variables were the corresponding investments in the maintenance and development of education (MDE), in the period 2005-2015. The results allow a comparative picture to be drawn of the effectiveness of the use of state resources invested by the states. It is verified that the investments in basic education in the states only partially explain the improved learning rates measured by the Ideb. Three distinct situations were observed. In 23 states there was an increase in investment in education accompanied by improvement in the Ideb. In 18 states, the increase in investments accompanied the improvement in the Ideb over a certain period, although this effect was not sustained throughout the historical series. In only 05 states, the relationship between investment and improvement in the Ideb remained positive throughout the analyzed period.
... Furthermore, the state is often the most relevant policy context within which to study the influence of policy changes or shocks. As such, through the early 2000s, as state school finance data had evolved, many of the most rigorous longitudinal studies of changes to state school finance systems, and resulting outcomes were state-specific studies, including studies in Massachusetts (Downes, Zabel, & Ansel, 2009;Guryan, 2001;Nguyen-Hoang & Yinger, 2014), Michigan Hyman, 2017;Roy, 2011;Papke, 2005), 6 Vermont (Downes, 2004), Kansas (Deke, 2003;Duncombe & Johnston, 2004), and elsewhere. ...
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This special topic is intended to advance research in school finance using two newly produced compilations of multiple longitudinal data systems, the School Finance Indicators Database ( http://schoolfinancedata.org/ ) and the Urban Institute, Education Data Explorer ( https://educationdata.urban.org/data-explorer/ ). This special topic contains two articles taking advantage of comprehensive longitudinal data on school finance. The first, by Victoria Sosina and Ericka Weathers, uses panel data from the School Finance Indicators Data System from 1999 to 2013 to evaluate whether and to what extent changes to Black-White and Latinx-White demographic differences among districts leads to greater resource disparity over time. The second article, by Knight and Mendoza, combines data from the Census Fiscal Survey with data from the California Department of Education to explore whether differences in data on and measures of school funding equity matter (i.e., lead to similar or different conclusions) when evaluating the effects of California’s 2013 adoption of the Local Control Funding Formula.
... For example, small class sizes have been associated with an increasing likelihood of a student later obtaining a college degree (Dynarski, Hyman, & Schanzenbach, 2013). Similarly, findings in Kansas demonstrate that increased perpupil spending through district-level equalization reforms increases the probability of a student continuing on to higher education (Deke, 2003). Overall, school expenditures have been associated with a positive impact on lifetime earnings (Card & Krueger, 1996;Jackson, Johnson, & Persico, 2016). ...
Article
Public concern stemming from the wide disparities in academic achievement based on student poverty status extends back at least to the issuing of the Coleman Report in 1966. The Coleman Report found large and persistent achievement gaps between economic and racial subgroups, yet, perhaps surprisingly, did not find large gaps in funding. The achievement gaps identified in the Coleman Report persist today. Since the NCES began tracking poverty gaps with the National Assessment of Education Progress (NAEP) in the 1990s, the disparities in achievement based on poverty have been large and statistically significant. In response, many states began enacting school funding mechanisms to direct additional resources to high‐poverty schools. Currently, 41 states have employed funding enhancements for poor students (EdBuild, 2018). Are these mechanisms effective at reducing the disparity in achievement for poor versus non‐poor students? Using data from the Urban Institute (2017), we find that states that have directed additional resources towards poor students effectively reduced the disparity between poor and non‐poor students in NAEP fourth‐ and eighth‐grade math and reading exams. Whereas the results are large and statistically significant, the costs associated with fully eliminating the disparity between poor and non‐poor students are very high. 因基于学生贫困情况的巨大学术成就差异而产生的公共关切至少能追溯到1966年《科尔曼报告》(以下简称《报告》)的发行。《报告》发现经济子群和种族子群之间存在巨大且持续的学术成就差距,然而出乎意料的是,《报告》并未发现经费中存在的巨大差距。《报告》所识别的学术成就差距在今天仍然存在。自20世纪90年代起美国国家教育统计中心(NCES)与国家教育进展评估(NAEP)开始追踪贫困差距,发现基于贫困的学术成就差距一直是巨大的、显著的。许多州的回应方式则是开始制定学校经费机制,将额外资源引入高度贫困学校。目前41个州已为贫困学生提高了经费(EdBuild 2018)。这些机制在减少贫困学生与非贫困学生的学术成就差距一事上是有效的吗?通过使用城市研究所(Urban Institute 2017)的数据,我们发现,就将额外资源给予贫困学生的各州而言,NAEP四年级和八年级数学测验与阅读测验中贫困学生与非贫困学生的学术成就差异得到了有效的减少。虽然结果是明显的、显著的,但完全消除贫困学生与非贫困学生之间的差距,所需的成本极高。 La preocupación pública derivada de las grandes disparidades en el rendimiento académico basado en el estado de pobreza de los estudiantes se remonta al menos a la publicación del Informe Coleman en 1966. El informe de Coleman encontró grandes y persistentes brechas de logros entre los subgrupos económicos y raciales, pero, quizás sorprendentemente, no encontró grandes brechas en la financiación. Las brechas de logros identificadas en el Informe Coleman persisten hoy. Desde que el NCES comenzó a rastrear las brechas de pobreza con la Evaluación Nacional del Progreso Educativo (NAEP) en la década de 1990, las disparidades en los logros basados en la pobreza han sido grandes y estadísticamente significativas. En respuesta, muchos estados comenzaron a promulgar mecanismos de financiación escolar para dirigir recursos adicionales a las escuelas de alta pobreza. Actualmente, 41 estados han empleado mejoras de financiación para estudiantes pobres (EdBuild 2018). ¿Son efectivos estos mecanismos para reducir la disparidad en el rendimiento de los estudiantes pobres versus los que no son pobres? Usando datos del Urban Institute (Urban Institute 2017), encontramos que los estados que han dirigido recursos adicionales hacia estudiantes pobres redujeron efectivamente la disparidad entre los estudiantes pobres y no pobres en los exámenes NAEP de matemáticas y lectura de 4to y 8vo grado. Si bien los resultados son grandes y estadísticamente significativos, los costos asociados con la eliminación total de la disparidad entre estudiantes pobres y no pobres son muy altos.
... Isto porque, utilizar apenas testes de rendimento escolar pontuais como medida de avaliação de desempenho dos estudantes e, por conseguinte, das escolas, seria inadequado para mensurar o valor da contribuição da escola como um todo. Idealmente, devem ser utilizados resultados de longo-prazo e acompanhamentos sistemáticos para avaliar a contribuição da escola (HEDGES; LAINE; GREENWALD, 1994;1996a;1996b;HAURIN;BRASINGTON, 1996;CARD;KRUEGER, 1998;KIM, 2001;DEKE, 2003;BRASINGTON;HAURIN, 2009;BAKER, 2016). A característica essencial desta abordagem, e que a diferencia das demais, é que a unidade de análise é a escola; não o estudante, individualmente. ...
Article
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Este artigo apresenta uma analise contextualizada dos desempenhos das escolas públicas brasileiras. Este tipo de analise permite conhecer em que condicoes as escolas chegaram aos resultados obtidos. Foi utilizada a Analise Envoltoria de Dados que possibilita verificar como os recursos disponiveis nas escolas influenciam seus resultados. Constatou-se que, quando se considera o ponto de partida das escolas, unidades em contextos socioeconômicos mais vulneraveis podem apresentar eficiencia similar ou ate superior a unidades em contextos socioeconômicos mais favoraveis. No entanto, escolas em contextos socioeconômicos mais favoraveis apresentam maior homogeneidade de resultados. A quantidade de horas-aulas diarias e a variavel definidora da eficiencia das escolas. Porem, escolas em contextos socioeconômicos mais vulneraveis possuem a maior quantidade de professores sem a formação adequada para as disciplinas que lecionam e oferecem menor número de horas-aulas diarias aos educandos.
... Inherent in the debate is the impact of increased spending on the performance outcomes of poor school districts. Numerous studies show that increased spending on less fortunate schools will lead to higher performance outcomes (Jackson et al. 2016;Lafortune et al. 2016;Card and Payne 2002;Roy 2011;Deke 2003; 1 3 ...
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The purpose of this study is to examine the propositions of “money matters/doesn’t matter” in a zero-sum public school system. Specifically, this study seeks to assess the impact of Texas Wealth Equalization Program on the academic performance of contributing wealthy school districts and the receiving poor school districts. Although the primary interest of this study is the aforementioned two sets of school districts, the study also incorporates a set of intermediate districts into the analysis in order to control for the possible threat of history. The study uses three state and national assessment tools to measure school performance. The results show that answer to the propositions of “money matters/doesn’t matter” is contextual. Controlling for the possible threat of history, the findings show that transfer of nearly $3.4 billion from wealthy to poor school districts did not result in lower academic achievement among the students of rich school districts while it resulted in modest performance improvement in poor districts. Policy implications of Wealth Equalization are discussed.
... Guryan (2001) found mixed evidence that SFR's improved test scores in Massachusetts. SFR's in California, Kansas, Kentucky, and Michigan were also examined, with mixed results (Downes, 1992;Deke, 2003;Clark, 2003;Roy, 2011). The heterogeneity of results across different contexts led most to consider the effect of SFR's an open question until recently. ...
Article
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A long-standing debate in the economics of education literature is whether increasing educational resources moves the needle on student achievement. Education finance reformers advocate delivering extra resources to disadvantaged school districts to close academic achievement gaps, but their efforts are subject to criticism from skeptics who believe that extra resources do not actually improve performance. This study leverages variation in per-pupil expenditures from a specific provision of the state aid formula in New York State that allows districts to maintain prior levels of total state aid even as their student enrollment declines. We uncover achievement gains of approximately .047 standard deviations in math and .042 standard deviations in English corresponding to $1,000 in additional per-pupil spending. This study strengthens the case that school resources matter, and that sustained financial investments can help districts maintain and improve quality of public education.
... Contudo, independentemente de ser uma abordagem micro ou macro, quando há disponibilidade de dados, a técnica estatística amplamente utilizada e que tem apresentado resultados importantes é a análise de regressão com a variável dependente binária, ou seja, modelos econométricos probabilísticos. São exemplos de estudos que se utilizaram dessa técnica a pesquisa desenvolvida por Deke (2003), que associou a evasão com a qualidade da educação; o trabalho de Vitelli (2012), que buscou explicar os fatores que interferiam na probabilidade de evasão dos alunos; o estudo de Stratton (2008), que analisou se havia diferença entre aqueles alunos que abandonavam no primeiro ano e os que trancavam o curso por um curto tempo. ...
Article
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O presente trabalho tem como objetivo realizar uma análise dos fatores determinantes da evasão universitária naUniversidade do Vale do Rio dos Sinos (UNISINOS). O estudo foi conduzido com base em uma amostra representativade alunos da UNISINOS, ingressantes no período de 2005 a 2008, tendo avaliado, por meio de regressão Logit, a relaçãoentre variáveis socioeconômicas e evasão discente. Pelos resultados da pesquisa concluiu-se que algumas variáveispesquisadas possuíam relação crescente à evasão, como, por exemplo, a variável disciplinas canceladas, em que umnúmero maior de cancelamentos resultou em uma probabilidade mais elevada de evasão por parte dos alunos. Outrasvariáveis possuíam relação inversa a esse fenômeno, como a variável disciplinas cursadas, na qual um número maior dedisciplinas cursadas por semestre reduzia as chances de o estudante evadir.
... debates to research on education finance reform, the existing literature showed mixed results. In Kansas education finance reform, while Deke (2003) found statistically significant impacts on overall student performance, Neymotin (2010) found no evidence of increased funding affecting dropout or graduation rates. And Duncombe and Johnston (2004) found positive evidence only in dropout rates, and not in other performance indicators. ...
... School structural characteristics considered in previous research have included student body socioeconomic status (SES; e.g., Konstantopoulos & Hedges, 2008) and racial composition of the school, with research finding that racial diversity in schools supports higher achievement and increased college-going rate and educational aspirations (e.g., Eaton, 2001). While research regarding per pupil expenditures have yielded mixed findings (Hanushek, 2001), generally positive outcomes are associated with higher spending (e.g., Deke, 2003;Greenwald, Hedges, & Laine, 1996). While the literature has advocated that smaller schools are associated with better student outcomes (e.g., Cotton, 1996Cotton, , 2001, some have argued that the relationship is indirect at the best and mediated by other factors (e.g., Darling-Hammond, Ross, & Milliken, 2006). ...
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Focusing on a cohort of high school students from a Midwest metropolitan region, this study combines multiple sources of data and uses a multinomial logistic regression to model student postsecondary choices with respect to whether and where to attend college. Specifically, we examined the enrollment patterns by proximity to the home region and factors associated with these college decisions. The results suggest that these students’ college choices were a process influenced by both precollege individual characteristics and social contexts. The findings also supported our hypothesis that acquisition of various types of capital and academic success of the school district (as one of several indicators of a college-going culture) were negatively related to student preferences for college proximity. These findings highlight the interplay between individual, family, community, and school at different levels as it influences college decisions of students from the deindustrialized Midwest region and regions alike.
... Card and Payne's (2002) national study of spending inequality found evidence that equalization of spending levels resulted in reduced inequality in test scores across family background groups. Deke's (2003) research on Kansas' ...
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Abstract of SCHOOL FINANCE DECISIONS AND ACADEMIC PERFORMANCE: AN ANALYSIS OF THE IMPACTS OF SCHOOL EXPENDITURES ON STUDENT PERFORMANCE by Andrew Edward Carhart. In 2013, California enacted the Local Control Funding Formula (LCFF) and set the most significant change to the state’s education system in the past forty years in motion. The LCFF reformed the state’s education finance system by reducing categorical funding programs, creating new formula funding mechanisms for students with the most significant needs, and providing flexibility to local decision makers. Since the LCFF has abolished or consolidated a majority of the categorical programs that the Legislature built up over the course of three decades, current administrators will be tested with newfound autonomy. In addition, school districts will be held accountable for their budgetary choices under the LCFF through Local Control and Accountability Plans (LCAPs), which must detail school wide goals, specific actions, performance measures, and expenditure projections to estimate what effect school policies will have on academic achievement. In this thesis, I use the basis of a regression analysis to provide a framework for rationalizing and prioritizing fiscal decisions and assess what choices can provide the best academic outcomes for California’s schools and students. Using two regression methods—ordinary least squares (OLS) and logistic—I examine the relationships among school, student, and teacher characteristics, test scores, and exemplary school performance using extensive data from primary and secondary schools in the state of Texas. The OLS regression analysis demonstrates a clear relationship between school expenditures in certain functions and average standardized test scores, while controlling for the complex interactions among the many other inputs of the education process. Based on the results of this first OLS analysis, I also perform a separate secondary regression analysis using a logistic regression model that demonstrates there is a non-linear relationship exists between expenditures and exemplary performing schools, with significantly differing effects based on the majority demographic composition of the school.
... Card and Payne's (2002) national study of spending inequality found evidence that equalization of spending levels resulted in reduced inequality in test scores across family background groups. Deke's (2003) research on Kansas' ...
Thesis
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Abstract of SCHOOL FINANCE DECISIONS AND ACADEMIC PERFORMANCE: AN ANALYSIS OF THE IMPACTS OF SCHOOL EXPENDITURES ON STUDENT PERFORMANCE by Andrew Edward Carhart. In 2013, California enacted the Local Control Funding Formula (LCFF) and set the most significant change to the state’s education system in the past forty years in motion. The LCFF reformed the state’s education finance system by reducing categorical funding programs, creating new formula funding mechanisms for students with the most significant needs, and providing flexibility to local decision makers. Since the LCFF has abolished or consolidated a majority of the categorical programs that the Legislature built up over the course of three decades, current administrators will be tested with newfound autonomy. In addition, school districts will be held accountable for their budgetary choices under the LCFF through Local Control and Accountability Plans (LCAPs), which must detail school wide goals, specific actions, performance measures, and expenditure projections to estimate what effect school policies will have on academic achievement. In this thesis, I use the basis of a regression analysis to provide a framework for rationalizing and prioritizing fiscal decisions and assess what choices can provide the best academic outcomes for California’s schools and students. Using two regression methods—ordinary least squares (OLS) and logistic—I examine the relationships among school, student, and teacher characteristics, test scores, and exemplary school performance using extensive data from primary and secondary schools in the state of Texas. The OLS regression analysis demonstrates a clear relationship between school expenditures in certain functions and average standardized test scores, while controlling for the complex interactions among the many other inputs of the education process. Based on the results of this first OLS analysis, I also perform a separate secondary regression analysis using a logistic regression model that demonstrates there is a non-linear relationship exists between expenditures and exemplary performing schools, with significantly differing effects based on the majority demographic composition of the school.
... Studies of Michigan school finance reforms in the 1990s have shown positive effects on student performance in both the previously lowest spending districts (Roy, 2011) 3 and previously lower performing districts (Papke, 2005). Similarly, a study of Kansas school finance reforms in the 1990s, which also involved primarily a leveling up of low-spending districts, found that a 20% increase in spending was associated with a 5% increase in the likelihood of students going on to postsecondary education (Deke, 2003). ...
Article
Although there has been significant progress in the long term, achievement gaps among the nation's students persist. Many factors have contributed to the disparities in outcomes, and societal changes can explain progress, or lack thereof, over the past few decades. This is well documented in the 2010 Educational Testing Service (ETS) report Black–White Achievement Gaps: When Progress Stopped, which explored achievement gap trends and identified the changing conditions that may have influenced those trends. In this report, we extend that work by focusing on the relationship between school funding, resource allocation, and achievement among students from low-income families. We tackle the assumption that greater resources, delivered through fair and equitable school funding systems, could help raise academic outcomes and reduce the achievement gap. The goal is to provide convincing evidence that state finance policies have consequences in terms of the level and distribution of resources, here limited to staffing characteristics, and that the resulting allocation of resources is also associated with changes in both the level of academic achievement and achievement gaps between low-income children and their peers. Using more than 20 years of revenue and expenditure data for schools, we empirically test the idea that increasing investments in schools generally is associated with greater access to resources as measured by staffing ratios, class sizes, and the competitiveness of teacher wages. When the findings presented here are considered with the strong body of academic literature on the positive relationship between substantive and sustained state school finance reforms and improved student outcomes, a strong case can be made that state and federal policy focused on improving state finance systems to ensure equitable funding and improving access to resources for children from low-income families is a key strategy to improve outcomes and close achievement gaps.
... Other important research has focused on single states, looked at in isolation. For instance, a Kansas study concerned the effects of reforms implemented under the earlier-mentioned "pre-ruling" by a court in 1992 (Deke, 2003). Recall that the pre-order advised the legislature that if the pending suit made it to trial, the judge would likely declare the school finance system unconstitutional (Baker & Green, 2006). ...
Article
Background/Context School finance litigation has often prompted funding reforms, but what happens as a result is the subject of considerable dispute. Purpose This article explores design problems encountered in studies examining the nature and effects of those reforms. Analysis After describing the development and current status of school finance litigation, the authors explore methodological complexities associated with estimating the effects of state school finance reforms. Then, following a review of the research literature that provides the most direct and empirically rigorous evaluations of the achievement effects of these reforms, the authors critique a growing body of weaker but nonetheless influential literature focused on attacking school finance reform and more generally on discrediting judicial involvement in public schooling and finance litigation. In the article's final section, the authors review school finance reform in the four states analyzed in an influential recent book by Hanushek and Lindseth, taking a second look at what the book's authors concluded were disappointing outcomes. Conclusions Methodological complexities and design problems plague finance impact studies. Although there are high-quality studies covering these issues, the research appearing to have the greatest influence in media coverage and policymaking is often advocacy-oriented and of lesser quality.
... Similarly, Papke (2001), also evaluating Michigan school finance reforms from the 1990s, found that "increases in spending have nontrivial, statistically significant effects on math test pass rates, and the effects are largest for schools with initially poor performance" (Papke, 2001, p. 821). 5 Deke (2003) evaluated "leveling up" of funding for very-low-spending districts in Kansas, following a 1992 lower court threat to overturn the funding formula (without formal ruling to that effect). The Deke article found that a 20% increase in spending was associated with a 5 percent increase in the likelihood of students going on to postsecondary education (p. ...
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The Great Recession’s effect on state school finance systems was unlike previous downturns in the early 1990s and early 2000s in that it a) involved a greater loss of taxable income in many states, thus greater loss to state general fund revenues, b) also involved a substantial collapse of housing markets and related reduction or at least leveling of growth of taxable property wealth, c) but also involved a substantive infusion of federal “fiscal stabilization” aid to be used to fill holes in state general aid formulas. The goal of this study is to evaluate the effects of the recession on equity of state school funding systems with respect to child poverty concentrations. Using school district level panel data from 1993 to 2011, we evaluate the interplay between local, state and federal source revenues through the course of the recent recession by comparison with the less severe economic downturn of the early 2000s. Then using state level estimates of elasticities between revenue and spending measures and district poverty rates, we estimate whether changes in the distribution of state, local or federal revenue contribute most to changes in overall equity of current spending and whether those contributions changed during the recent recession.
... En este marco se introduce la potencial acción del Estado mediante diferentes políticas públicas, como, por ejemplo, las ayudas directas (en forma de becas y ayudas al estudio u otro tipo de transferencia) y las prestaciones fiscales. A nivel empírico, y mediante diferentes aproximaciones referidas a la educación superior, los estudios analizados demuestran que existe un efecto positivo de las ayudas públicas, vía becas o préstamos subvencionados, sobre las tasas de escolarización o de graduación (McPherson y Schapiro, 1991;Wetzel et al., 1999;DesJardins et al., 2002;Deke, 2003;Kim, 2007;Monks, 2009). ...
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The main objective of this study is to identify and quantify the existence of an impact on upper secondary completion rates of a scholarships program applied to different sub-populations in Spain. The evaluation is performed applying an ex-post quasi-experimental approach technique, the propensity score matching, to microdata obtained from the European Union Statistics on Income and Living Conditions (EU-SILC2006). Results confirm the existence of a differential positive effect of scholarships for women and students from disadvantaged households, demonstrating the existence of heterogeneous impacts of the policy analysed.
... En este marco se introduce la potencial acción del Estado a través de diferentes políticas públicas como, por ejemplo, las ayudas directas (en forma de becas y ayudas al estudio u otro tipo de transferencia) y las prestaciones fiscales. Éstas últimas tienen en cuenta las ayudas relacionadas con la maternidad o las dirigidas a las familias monoparentales o numerosas, por ejemplo (Card y Krueger, 1992; Deke, 2003). El mismo emplea dos instrumentos, en primer lugar, el test que, en el caso de matemática tiene su fundamento en la resolución de problemas. ...
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En este artículo se explora la convergencia entre la teoría de las capacidades y la educabilidad, en relación con la existencia de múltiple factores que determinan el rendimiento educativo. El objetivo del trabajo es comprobar la presencia de tales condicionantes para el caso de Brasil, centrando la atención en los factores de calidad. Para ello, se emplea la prueba de matemáticas en la cuarta serie (10 años) correspondiente a la educación primaria del sistema educativo brasilero. El resultado obtenido indica la importancia de condicionantes del ámbito individual, de los progenitores, del hogar y del entorno. Particularmente, cabe resaltar la importancia de los diferentes condicionantes de calidad introducidos en la estimación.
... Increased school funding is associated with greater reading (but not math) achievement and higher college enrollment rates (Darling-Hammond 1999;Deke 2003). Higher ACT scores, graduation rates and enrollment rates can be expected of charter school students (Booker et al. 2008). ...
... En este marco se introduce la potencial acción del Estado mediante diferentes políticas públicas, como, por ejemplo, las ayudas directas (en forma de becas y ayudas al estudio u otro tipo de transferencia) y las prestaciones fiscales. A nivel empírico, y mediante diferentes aproximaciones referidas a la educación superior, los estudios analizados demuestran que existe un efecto positivo de las ayudas públicas, vía becas o préstamos subvencionados, sobre las tasas de escolarización o de graduación (McPherson y Schapiro, 1991; Wetzel et al., 1999; DesJardins et al., 2002; Deke, 2003; Kim, 2007; Monks, 2009). En el caso español, Marcenario Gutiérrez y Navarro Gómez (2001), a partir de una aproximación multivariante (modelo probit), intentan determinar los condicionantes de la demanda de educación superior. ...
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Resumen El presente trabajo analiza el impacto de las becas sobre la probabilidad de finalizar con éxito el nivel secundario postobligatorio en España en el caso de diferentes subgrupos poblacionales. Se aplica un diseño cuasiexperimental (Propensity score matching) a partir de la Encuesta de Condiciones de Vida (ECV-2006). Los resultados confirman la existencia de efectos diferenciales positivos (con relación al impacto medio) de la política educativa en el caso de las mujeres y de los alumnos provenientes de hogares desfavorecidos, demos-trando la existencia de heterogeneidad en el impacto de la política analizada. Palabras clave: Becas; Educación secundaria postobligatoria; Propensity Score Matching; Impactos diferenciales; ECV-06.
... Though some question the cited meta-analytical studies, suggesting that counting multiple variations of models in the same study distorts the overall finding, these critics base their results on works that draw on district-wide or regional data that do not control for the heterogeneity found between individual schools ( Laine, 1996a, 1996b; Hanushek, 1996b). More importantly, when re-examining their results, meaningful gains in student achievement are associated only with scenarios of unrealistic increases in instructional funding. 1 Unfortunately, most of the frequently cited studies employ district-level information, rather than individual schoolbased data (Deke, 2003; Card and Payne, 2002; Jones and Zimmer, 2001; Wenglinsky, 1998 Wenglinsky, , 1997 Hiller, 1996; Kazal-Thresher, 1993). Others draw conclusions based strictly on statistical significance of one resource-related variable, even though the effect size shows little meaningful impact (Elliott, 1998). 2 A recent study of 313 schools appears to corroborate the position that increasing resources may lead to little positive change in student achievement at the high school level (). ...
Article
This paper is the first to estimate the cost function of Connecticut public K–12 education and to evaluate the state's school spending based on regression-estimated education costs. It finds large disparities across districts in education costs and cost-adjusted spending. A large percentage of the state's public school students are enrolled in districts where spending is inadequate relative to the predicted cost of achieving a common student performance target. Thus, many school districts, especially the high-cost ones, need a large amount of additional spending to improve student performance.
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We leverage an obscure set of rules in Texas's school funding formula granting some districts additional revenue as a function of size and sparsity. We use variation from kinks and discontinuities in this formula to ask how districts spend additional discretionary funds, and whether these improve student outcomes. A $1000 annual increase in foundation funding, or 10% increase in expenditures, yields a 0.1 s.d. increase in reading scores and a near 0.08 increase in math. In addition dropout rates decline, graduation rates marginally increase, as does college enrollment and to a smaller degree graduation. These gains accrue in later grades and largely among poorer districts. An analysis of budget allocations reveals that additional funding only marginally affects budget shares.
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As part of the American Recovery and Reinvestment Act of 2009, the School Improvement Grants (SIG) program received more than $3 billion with the goal of substantially improving student achievement. The SIG program’s funding was to help states turn around the nation’s persistently lowest-achieving schools using one of four school intervention models—transformation, turnaround, restart, or closure. We used a regression discontinuity design and a large sample of schools from more than 20 states to evaluate the impact of implementing a SIG-funded intervention model on use of SIG-promoted practices and student outcomes. Our regression discontinuity design exploited cutoff values on the continuous variables used to define the SIG eligibility tiers to compare outcomes in schools that just met the eligibility cutoff for receiving SIG funding to outcomes in schools that just missed it. We found that SIG had no impact on any of the outcomes we examined, including math and reading test scores, high school graduation rates, and college enrollment rates. Using a correlational analysis, we found the turnaround model was associated with larger student achievement gains in math than the transformation model for grades 6 through 12.
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This article builds on the national school funding fairness report annually produced by the Education Law Center (ELC) of New Jersey. This article expands prior analyses in two directions. First, while ELC analyses evaluate only the most recent 3 years of data, we track school funding progressiveness (the relative targeting of funding to districts serving economically disadvantaged children) for all states from 1993 to 2012. Second, this article explores in greater depth the consequences of school funding levels, distributions and changes for specific classroom resources provided in schools. The analyses presented herein validate that variations in available revenues and expenditures are associated with variations in children's access to real resources—as measured by the competitiveness of the wages paid to their teachers and by pupil-to-teacher ratios and class sizes.
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This profile describes traditional assessment practices in Armenia – many of which are typical of those formerly practised throughout the Soviet Union – and the ongoing efforts to reform formal examinations and school‐based evaluation techniques. The extraordinarily high stakes associated with the examination currently used to select applicants for university places are discussed, as are the consequences for teaching and learning of having entrance tests based on published, rather than unseen, item banks. Progress towards introducing a new, dual‐purpose school‐leaving/university selection examination is outlined and the remaining hurdles described.
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While there has been increasing interest in the impact of court-mandated education finance reform on school district efficiency, research on the subject is scant. Taking advantage of New Jersey Supreme Court cases that have altered the way in which state school aid is distributed, this paper examines the effect of changes in the education finance system on school district efficiency. Building on existing literature on public sector efficiency, a longitudinal data analysis based on two-stage DEA models reveals that court-mandated increases in state aid to a limited number of poor school districts decreased the districts' efficiency. Though these results should be interpreted with some caution, in particular, the limitation of DEA as an efficiency measure, they imply that, as with any policy, policy makers and courts should be aware of how policy changes affect local government behavior and that it is necessary to evaluate policy outcome taking into account both resources and performance.
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The disparities in achievement among income and racial-ethnic groups of students have long been a major concern of educational policies. Among several identified factors that help explain the student performance gap, this paper focuses on inequity in funding for education among school districts, which resulted from heavy reliance of school districts’ revenue on local wealth. In 2004, the State of Maryland witnessed a significant change in financing methods for educational services by providing more resources for school districts with larger share of disadvantaged students. This is the first study to examine the effects of Maryland education finance reform on school spending and student performance. The findings show that reform has improved spending equity by providing more aid to school districts with larger share of disadvantaged students, but found little evidence that reform closed the student performance gap. This study holds policy implications for the current debate on reducing gaps of spending and student performance across school districts by using education finance reforms.
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Recent changes in public school educational finance in the state of Kansas are shown to have had little positive effect on student educational achievement. A differences structure is used to determine the effect of changes in revenue per student at the district level on changes in measures of student achievement. Measures of achievement employed in the analysis are student test scores in math and reading, as well as various measures of student persistence in schooling.
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One of the most important and controversial questions for the economics of education is whether increasing the level of school resources improves student outcomes. In this paper we investigate the effects of school resources on student attainment in English secondary schools using a unique and incredibly rich national data set, which contains information on all secondary school students in England. In contrast to much of the literature, our study found positive resource effects at secondary school level. We found modest and subject-specific positive effects from additional resources on attainment at age 14 and our results indicate that additional spending to reduce the student-teacher ratio is more effective than expenditure on additional non teaching staff or an increase in general expenditure.
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In this paper, I estimate the effect of state school inputs on labor market returns to schooling. The method follows Card and Krueger (1992) and Heckman et al. (1996), but I extend their analysis in two ways. First, I correct state-level returns to schooling for selective migration, adapting a method from Dahl (2002). Second, I use more recent data and assess the degree to which the 1999 labor market capitalized school inputs (with 2000 Census data). Higher state-level school inputs are associated with higher returns to schooling after correcting for selective migration. These positive effects are present in all Census years I study.
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Two interlocking claims are being increasing made around school finance: that states have largely met their obligations to resolve disparities between local public school districts and that the bulk of remaining disparities are those that persist within school districts. These local decisions are described as irrational and unfair school district practices in the allocation of resources between individual district schools. In this article, we accept the basic contention of within-district inequities. But we begin with a critique of the empirical basis for the claims that within-district disparities are the dominant form of persistent disparities in school finance, finding that claims to this effect are largely based on one or a handful of deeply flawed analyses. Next, we present empirical analysis, using national data, of 16-year trends (1990 to 2005) and recent patterns (2005 to 2007) of between-district disparities, finding that state efforts to resolve between-district disparities are generally incomplete and inadequate and that in some states, between-district disparities have actually increased over time.
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Este estudo enfoca o financiamento da educação básica nos municípios baianos, de 1997 a 2001, buscando analisar a relação existente entre as variações no compromisso financeiro dos governos locais com o desempenho dos alunos das redes municipais nos exames de avaliação em larga escala. Foram considerados dois bancos de dados contendo variáveis relacionadas às receitas e despesas municipais com a educação básica pública, ao longo da década de 1990, bem como os escores dos alunos do ensino fundamental municipal nos testes de avaliação de desempenho. De um lado, os dados mostraram que existe ausência de correlações significativas entre as variáveis indicadoras do compromisso financeiro dos municípios com a educação e o desempenho escolar; de outro, os resultados indicam que entre os municípios mais ricos existe maior variação no compromisso de financiar a educação do que entre os mais pobres.
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This paper helps reconcile the contradictory findings about school resources and school effectiveness by developing the implications of data aggregation. With model misspecification, the theoretical impact of aggregation is generally ambiguous. When important state differences in school policy are omitted, however, aggregation implies clear upward bias of estimated school resource effects. Review of past studies and new empirical analysis provide strong evidence that aggregation inflates the coefficients on school resources. The pattern of results is also inconsistent with an errors-in-variables explanation. These results provide further support to the view that additional expenditures alone are unlikely to improve student outcomes.
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The wage differential between black and white men fell from 40 percent in 1960 to 25 percent in 1980. It has been argued that this convergence reflects improvements in the relative quality of black schools. To test this hypothesis, the authors assembled data on pupil-teacher ratios, annual teacher pay, and term length for black and white schools in the eighteen segregated states from 1915 to 1966. These data are linked to estimated returns to education for Southern-born men from different cohorts and states in 1960, 1970, and 1980. Improvements in the relative quality of black schools explain 20 percent of the narrowing of the black-white earnings gap between 1960 and 1980. Copyright 1992, the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
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This paper estimates the effects of school quality--measured by the pupil/teacher ratio, average term length, and relative teacher pay--on the rate of return to education for men born between 1920 and 1949. Using earnings data from the 1980 census, the authors find that men who were educated in states with higher-quality schools have a higher return to additional years of schooling. Rates of return are also higher for individuals from states with better-educated teachers and with a higher fraction of female teachers. Holding constant school quality measures, however, the authors find no evidence that parental income or education affects average state-level rates of return. Copyright 1992 by University of Chicago Press.
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This paper uses detailed school-level data from 49 states to analyze the effects of tax-revolt era property tax limitations on school services. I find that limitations are associated with larger student-teacher ratios and lower cost-of-living adjusted starting teacher salaries, all else equal. These results are robust to modelling the results as endogenous and using a variety of measures for whether the limitation binds at particular schools. However, I find no such evidence that schools subject to limitations have reduced their administrative costs. Furthermore, I find that limitations are associated with lower student performance on mathematics, science, social studies and reading examinations, all else equal.
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This paper uses a new survey to contrast the wages of genetically identical twins with different schooling levels. Multiple measurements of schooling levels were also collected to assess the effect of reporting error on the estimated economic returns to schooling. The data indicate that omitted ability variables do not bias the estimated return to schooling upward, but that measurement error does bias it downward. Adjustment for measurement error indicates that an additional year of schooling increases wages by 16%, a higher estimate of the economic returns to schooling than has been previously found.
Article
This paper helps reconcile the contradictory findings about school resources and school effectiveness by developing the implications of data aggregation. With model misspecification, the theoretical impact of aggregation is generally ambiguous. When important state differences in school policy are omitted, however, aggregation implies clear upward bias of estimated school resource effects. Review of past studies and new empirical analysis provide strong evidence that aggregation inflates the coefficients on school resources. The pattern of results is also inconsistent with an errors-in-variables explanation. These results provide further support to the view that additional expenditures alone are unlikely to improve student outcomes. Copyright 1996 by MIT Press.
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The paper searches for links between school quaity and subsequent earnings of students. Using data for white males from the National Longitudinal Survey of Youth, the paper rejects the hypothesis that workers' earnings are independent of which high school they attended. However, traditional measures of school 'quality' such as class size, teachers' salaries and teachers' level of education fail to capture these differences. This result is robust to changes in specification and subsample. The paper contrasts the results with those of D. Card and A. B. Krueger (1992) and speculates that structural changes may have weakened the link between traditional measures of school quality and student outcomes. Copyright 1995 by MIT Press.
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This paper analyzes data on 11,600 students and their teachers who were randomly assigned to different size classes from kindergarten through third grade. Statistical methods are used to adjust for nonrandom attrition and transitions between classes. The main conclusions are (1) on average, performance on standardized tests increases by four percentile points the first year students attend small classes; (2) the test score advantage of students in small classes expands by about one percentile point per year in subsequent years; (3) teacher aides and measured teacher characteristics have little effect; (4) class size has a larger effect for minority students and those on free lunch; (5) Hawthorne effects were unlikely. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology
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A simple supply and demand framework is used to analyze changes in the U. S. wage structure from 1963 to 1987. Rapid secular growth in the demand for more-educated workers, “more-skilled” workers, and females appears to be the driving force behind observed changes in the wage structure. Measured changes in the allocation of labor between industries and occupations strongly favored college graduates and females throughout the period. Movements in the college wage premium over this period appear to be strongly related to fluctuations in the rate of growth of the supply of college graduates.
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This paper uses a new survey to contrast the wages of genetically identical twins with different schooling levels. Multiple measurements of schooling levels were also collected to assess the effect of reporting error on the estimated economic returns to schooling. The data indicate that omitted ability variables do not bias the estimated return to schooling upward but that measurement error does bias it downward. Adjustment for measurement error indicates that an additional year of schooling increases wages by 12 to 16 percent, a higher estimate of the economic returns to schooling than has been previously found. Copyright 1994 by American Economic Association.
Article
Economists attempting to explain the widening of the black-white wage gap in the late 1970's by differences in school quality have been faced with the problem that recent data reveal virtually no gap in the quality of schools attended by blacks and whites using a variety of measures. In this paper, we reexamine racial differences in school quality by considering the effects of using the pupil-teacher ratio, rather than the school's average class size,in an education production function since the pupil-teacher ratio is a rough proxy, at best. We find that while the pupil-teacher ratio and average class size are correlated, the pupil-teacher ratio is systematically less than or equal to the average class size. Part of the difference is due to intraschool allocation of teachers to classes. While the pupil-teacher ratio shows no black-white differences in class size, measures of the school's average class size suggest blacks are in larger classes. Also, the two measures lead to differing estimates of the role of class size in an education production function. We also conclude that school level measures may obscure important within-school variation in class size due to the small class sizes for compensatory education and a kind of aggregation bias results. Not only are blacks in schools with larger average class sizes but they are also in larger classes within schools, conditional on class type. The intraschool class size patterns suggest that using within-school variation in education production functions is not a good solution to aggregation problems due to non-random assignment of students to different sized classes. But once the selection problem has been addressed,smaller classes at the 8th grade lead to larger test score gains from 8th to 10th grade and differences in class size can explain approximately 15% of the black-white gap in educational achievement.
Intraschool variation in class size: patterns and implications. National Bureau of Econ-omic Research Working Paper
  • M Boozer
  • C Rouse
Boozer, M., & Rouse, C. (1995). Intraschool variation in class size: patterns and implications. National Bureau of Econ-omic Research Working Paper, 5144, 30 pages.
Does school quality matter? Evidence from the National Longitudinal Survey of Youth
  • Betts
Betts, J. (1995). Does school quality matter? Evidence from the National Longitudinal Survey of Youth. The Review of Economics and Statistics, 77(2), 231-250.