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The Effect of Extra Funding for Disadvantaged Pupils on Achievement

Edwin Leuven (), Mikael Lindahl (), Hessel Oosterbeek () and Dinand Webbink
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Dinand Webbink: CPB Netherlands Bureau for Economic Policy Analysis

The Review of Economics and Statistics, 2007, vol. 89, issue 4, 721-736

Abstract: This paper evaluates the effects of two subsidies targeted at schools with large proportions of disadvantaged pupils. The first scheme gives primary schools with at least 70% disadvantaged minority pupils extra funding for personnel. The second scheme gives primary schools with at least 70% pupils from any disadvantaged group extra funding for computers and software. The cutoffs provide a regression discontinuity design that we exploit in a local difference-in-differences framework. For both subsidies we find negative point estimates, which are for some outcomes significantly different from 0. Extra funding for computers and software seems especially detrimental for girls' achievement. The negative effects of extra funding for computers and software are consistent with results from other recent studies casting doubt on the efficacy of computers in schools. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

Date: 2007
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The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

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