Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South

Elizabeth Cascio, Nora Gordon () and Sarah J. Reber

No 17155, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Title I of the 1965 Elementary and Secondary Education Act substantially increased federal aid for education, with the goal of expanding educational opportunity. Combining the timing of the program's introduction with variation in its intensity, we find that Title I increased school spending by 46 cents on the dollar in the average school district in the South and increased spending nearly dollar-for-dollar in Southern districts with little scope for local offset. Based on this differential fiscal response, we find that increases in school budgets from Title I decreased high school dropout rates for whites, but not blacks.

JEL-codes: H7 I2 J15 (search for similar items in EconPapers)
Date: 2011-06
New Economics Papers: this item is included in nep-edu and nep-ure
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Published as “Local Responses to Federal Grants : Evidence from the Introduction of Ti tle I in the South” (with Nora Gordon and Sarah Reber), American Economic Jour nal: Economic Policy , 5(3), 126-159, August 2013.

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