Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education

Thomas Goldring (), Brian A. Jacob (), Daniel Kreisman () and Michael Ricks
Additional contact information
Thomas Goldring: Georgia State University
Brian A. Jacob: University of Michigan
Daniel Kreisman: Georgia State University

No 16943, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: In 2015, Michigan increased it Career and Technical Education (CTE) funding and changed its funding formula to reimburse programsbased student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.

Keywords: career and technical education; school funding; loopholes (search for similar items in EconPapers)
JEL-codes: I21 I24 J24 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2024-04
New Economics Papers: this item is included in nep-lma and nep-ure
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Working Paper: Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education (2024)
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