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The Labor Market and School Finance Effects of the Texas Shale Boom on Teacher Quality and Student Achievement

Joseph Marchand () and Jeremy Weber ()

No 2015-15, Working Papers from University of Alberta, Department of Economics

Abstract: Resource booms can affect student achievement through greater labor demand, where rising wages pull students or teachers out of schools, and through an expanded tax base, where increased school spending alters teacher quality or student productivity. Using shale depth variation across Texas school districts with annual oil and gas price variation, this study finds that resource development slightly decreased student achievement despite providing schools with more money. Vocational and economically disadvantaged students were pulled into the labor market, while teacher turnover and inexperience increased. Schools responded to the tax base expansion by spending more on capital projects but not on teachers.

Keywords: local labor markets; local school finance; resource booms; teacher quality (search for similar items in EconPapers)
JEL-codes: H70 I22 J24 J40 Q33 R23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu, nep-lma and nep-ure
Date: 2015-09-30
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