We analyze the effects of the introduction of Title I of the 1965 Elementary and Secondary Education Act, a large federal grants program designed to increase poor students' educational services and achievement. We focus on the South, the poorest region of the country. Title I increased school spending by $0.50 on the dollar in the average southern school district and by more in districts with less ability to offset grants through local tax reductions. Title I-induced increases in school budgets appear to have reduced high school dropout rates of whites, but not blacks.
"Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South."
American Economic Journal: Economic Policy,
National Government Expenditures and Education
State and Local Government: Health; Education; Welfare; Public Pensions
Analysis of Education
Education: Government Policy
Economics of Minorities, Races, and Immigrants; Non-labor Discrimination