The effect of funding for disadvantaged students on academic underachievement

Oleg Badunenko, Deni Mazrekaj, Subal C. Kumbhakar and Kristof Witte ()
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Oleg Badunenko: Brunel University of London
Subal C. Kumbhakar: State University of New York
Kristof Witte: Leuven Economics of Education Research (LEER), KU Leuven

Palgrave Communications, 2025, vol. 12, issue 1, 1-9

Abstract: Abstract We estimate the effect of school funding for disadvantaged students on academic underachievement in primary education. For this purpose, we exploit a policy in Belgium that granted additional funding for schools with a share of disadvantaged students of at least 10%. Combining stochastic frontier analysis (a method to measure efficiency) with regression discontinuity design, we find that while additional funding does not affect achievement, it does help reduce underachievement. As a result, the policy has helped bringing students impacted by it closer to realizing their full potential compared to their peers who were not included in the policy. From a policy perspective, our findings indicate that maintaining targeted remedial measures is essential for enhancing effectiveness. Additionally, we emphasize the importance of analyzing both underachievement and achievement.

Date: 2025
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DOI: 10.1057/s41599-025-05524-1

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