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An integrated assessment of the effects of Title I on school behavior, resources, and student achievement

Jordan Matsudaira, Adrienne Hosek and Elias Walsh

Economics of Education Review, 2012, vol. 31, issue 3, 1-14

Abstract: We examine the effects of Title I on school behavior, resources, and academic performance using a rich set of school finance and student-level achievement data from one large urban school district using a regression discontinuity design. We find that Title I eligibility raises Federal revenues of schools by about $460 per student. This is partially offset by decreases in revenues from state categorical aid grants, so that the net increase to schools is about $360 per student. We find no impact on overall school-level test scores, but also no impact among the subgroups of students most likely to be affected by Title I. A novel finding is that schools appear to respond to the incentives embedded in the Title I allocation process by manipulating the fraction of their students signed up for free lunch to secure more Federal funds.

Keywords: State and federal aid; Rate of return; Educational economics; Grants (search for similar items in EconPapers)
JEL-codes: H7 I2 (search for similar items in EconPapers)
Date: 2012
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DOI: 10.1016/j.econedurev.2012.01.002

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