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American Economic Review: Vol. 103 No. 3 (May 2013)

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The Poverty Gap in School Spending Following the Introduction of Title I

Article Citation

Cascio, Elizabeth U., and Sarah Reber. 2013. "The Poverty Gap in School Spending Following the Introduction of Title I." American Economic Review, 103(3): 423-27.

DOI: 10.1257/aer.103.3.423

Abstract

Title I of the 1965 Elementary and Secondary Education Act explicitly directed more federal aid for K-12 education to poorer areas for the first time in US history, with a goal of promoting regional convergence in school spending. Using newly collected data, we find some evidence that Title I narrowed the gap in per-pupil school spending between richer and poorer states in the short- to medium-run. However, the program was small relative to then-existing poverty gaps in school spending; even in the absence of crowd-out by local or state governments, the program could have reduced the gap by only 15 percent.

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Authors

Cascio, Elizabeth U. (Dartmouth College)
Reber, Sarah (UCLA)

JEL Classifications

H52: National Government Expenditures and Education
H75: State and Local Government: Health; Education; Welfare; Public Pensions
I21: Analysis of Education
I28: Education: Government Policy
I32: Measurement and Analysis of Poverty
I38: Welfare and Poverty: Government Programs; Provision and Effects of Welfare Programs


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