Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment
- (pp. 256-80)
AbstractThis 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.
CitationHyman, 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
- H75 State and Local Government: Health; Education; Welfare; Public Pensions
- I21 Analysis of Education
- I22 Educational Finance; Financial Aid
- I28 Education: Government Policy