This website uses cookies.

By clicking the "Accept" button or continuing to browse our site, you agree to first-party and session-only cookies being stored on your device to enhance site navigation and analyze site performance and traffic. For more information on our use of cookies, please see our Privacy Policy.

  1. Home
  2. Journals
  3. American Economic Journal: Economic Policy
  4. November 2017
  5. Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment

Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment

  • Joshua Hyman
American Economic Journal: Economic Policy
vol. 9, no. 4, November 2017
(pp. 256-80)
Download Full Text PDF
(Complimentary)

Abstract

This paper measures the effect of increased primary school spending on students' college enrollment and completion. Using student-level panel administrative data, I exploit variation in the school funding formula imposed by Michigan's 1994 school finance reform, Proposal A. Students exposed to $1,000 (10 percent) more spending were 3 percentage points (7 percent) more likely to enroll in college and 2.3 percentage points (11 percent) more likely to earn a postsecondary degree. The effects were concentrated among districts that were urban and suburban, lower poverty, and higher achieving at baseline. Districts targeted the marginal dollar toward schools serving less-poor populations within the district.

Citation

Hyman, Joshua. 2017. "Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment." American Economic Journal: Economic Policy, 9 (4): 256-80. DOI: 10.1257/pol.20150249

Additional Materials

JEL Classification

  • H75 State and Local Government: Health; Education; Welfare; Public Pensions
  • I21 Analysis of Education
  • I22 Educational Finance; Financial Aid
  • I28 Education: Government Policy
There are no comments for this article.
Login to Comment