Rationalizing the E-Rate: The Effects of Subsidizing IT in Education

Michael Ward ()

No 05-25, Working Papers from NET Institute

Abstract: Starting in 1998, the E-Rate program has provided $2.25 billion to subsidize Internet access in schools and libraries serving low income populations in the US. I analyze the effect of E-Rate subsidies on educational outcomes for Texas high schools over the 1994-2003 time period. Consistent with previous economic analyses, I find few, if any, improvements in student achievements. I do find evidence that experienced teachers are reallocated within districts toward schools receiving E-Rate grants. I also find evidence that the pool of college entrance exam takers is affected by E-Rate grants such that relying on average scores could lead to incorrect conclusions.

Keywords: Education; Internet; Subsidy (search for similar items in EconPapers)
JEL-codes: H20 I22 J22 L86 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2005-10, Revised 2005-10
New Economics Papers: this item is included in nep-edu, nep-hrm and nep-pbe
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