School Finance Equalization Increases Intergenerational Mobility

Barbara Biasi

Journal of Labor Economics, 2023, vol. 41, issue 1, 1 - 38

Abstract: This paper estimates the causal effect of equalizing revenues across school districts on students’ intergenerational mobility. I exploit cohort differences in exposure to equalization generated by state-level reforms. To address the endogeneity of postreform revenues due to household sorting after a reform, I use a simulated-instruments approach that uses newly collected data on states’ funding formulas to simulate revenues without sorting. I find that equalization has a large effect on the mobility of low-income students. Reductions in input gaps between low-income and high-income districts are likely channels behind this effect.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://dx.doi.org/10.1086/718980 (application/pdf)
http://dx.doi.org/10.1086/718980 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ucp:jlabec:doi:10.1086/718980

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().