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.
Cascio, Elizabeth U., Nora Gordon, and Sarah Reber.
"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