Does Money Matter in the Long Run? Effects of School Spending on Educational Attainment

Joshua Hyman

American Economic Journal: Economic Policy, 2017, vol. 9, issue 4, 256-80

Abstract: This paper measures the effect of increased primary school spending on students' college enrollment and completion. Using student-level panel administrative data, I exploit variation in the school funding formula imposed by Michigan's 1994 school finance reform, Proposal A. Students exposed to $1,000 (10 percent) more spending were 3 percentage points (7 percent) more likely to enroll in college and 2.3 percentage points (11 percent) more likely to earn a postsecondary degree. The effects were concentrated among districts that were urban and suburban, lower poverty, and higher achieving at baseline. Districts targeted the marginal dollar toward schools serving less-poor populations within the district.

JEL-codes: H75 I21 I22 I28 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/pol.20150249
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Citations: View citations in EconPapers (55)

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