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Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South

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

American Economic Journal: Economic Policy, 2013, vol. 5, issue 3, 126-59

Abstract: 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.

JEL-codes: H52 H75 I21 I28 J15 (search for similar items in EconPapers)
Date: 2013
Note: DOI: 10.1257/pol.5.3.126
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American Economic Journal: Economic Policy is currently edited by Matthew Shapiro

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Handle: RePEc:aea:aejpol:v:5:y:2013:i:3:p:126-59