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The Poverty Gap in School Spending Following the Introduction of Title I

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  • Elizabeth U. Cascio
  • Sarah Reber

Abstract

Title I of the 1965 Elementary and Secondary Education Act explicitly directed more federal aid for K-12 education to poorer areas for the first time in US history, with a goal of promoting regional convergence in school spending. Using newly collected data, we find some evidence that Title I narrowed the gap in per-pupil school spending between richer and poorer states in the short- to medium-run. However, the program was small relative to then-existing poverty gaps in school spending; even in the absence of crowd-out by local or state governments, the program could have reduced the gap by only 15 percent.

Suggested Citation

  • Elizabeth U. Cascio & Sarah Reber, 2013. "The Poverty Gap in School Spending Following the Introduction of Title I," American Economic Review, American Economic Association, vol. 103(3), pages 423-427, May.
    • Handle: RePEc:aea:aecrev:v:103:y:2013:i:3:p:423-27
    Note: DOI: 10.1257/aer.103.3.423
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    References listed on IDEAS

    as
    1. Gordon, Nora, 2004. "Do federal grants boost school spending? Evidence from Title I," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1771-1792, August.
    2. Elizabeth Cascio & Nora Gordon & Ethan Lewis & Sarah Reber, 2010. "Paying for Progress: Conditional Grants and the Desegregation of Southern Schools," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 445-482.
    3. Rucker C. Johnson, 2011. "Long-run Impacts of School Desegregation & School Quality on Adult Attainments," NBER Working Papers 16664, National Bureau of Economic Research, Inc.
    4. Sean Corcoran & William N. Evans, 2010. "Income Inequality, the Median Voter, and the Support for Public Education," NBER Working Papers 16097, National Bureau of Economic Research, Inc.
    5. Matsudaira, Jordan D. & Hosek, Adrienne & Walsh, Elias, 2012. "An integrated assessment of the effects of Title I on school behavior, resources, and student achievement," Economics of Education Review, Elsevier, vol. 31(3), pages 1-14.
    6. van der Klaauw, Wilbert, 2008. "Breaking the link between poverty and low student achievement: An evaluation of Title I," Journal of Econometrics, Elsevier, vol. 142(2), pages 731-756, February.
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    Citations

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    Cited by:

    1. Paola Giuliano & Antonio Spilimbergo, 2009. "Growing Up in a Recession: Beliefs and the Macroeconomy," NBER Working Papers 15321, National Bureau of Economic Research, Inc.
    2. Ding, Yanqing & Lu, Fengming & Ye, Xiaoyang, 2020. "Intergovernmental transfer under heterogeneous accountabilities: The effects of the 2006 Chinese Education Finance Reform," Economics of Education Review, Elsevier, vol. 77(C).
    3. Barbara Biasi, 2019. "School Finance Equalization Increases Intergenerational Mobility: Evidence from a Simulated-Instruments Approach," NBER Working Papers 25600, National Bureau of Economic Research, Inc.
    4. Lavertu, Stéphane & Clair, Travis St., 2018. "Beyond spending levels: Revenue uncertainty and the performance of local governments," Journal of Urban Economics, Elsevier, vol. 106(C), pages 59-80.
    5. Nora Gordon & Sarah Reber, 2020. "Federal Aid to School Districts during the COVID-19 Recession," National Tax Journal, National Tax Association;National Tax Journal, vol. 73(3), pages 781-804, September.
    6. Sarah J. Reber, 2014. "Comment on "Explaining Trends in High School Graduation: The Changing Elementary and Secondary Education Policy Landscape and Income Inequality over the Last Half Century"," NBER Chapters, in: Human Capital in History: The American Record, pages 89-95, National Bureau of Economic Research, Inc.
    7. Caetano, Gregorio & Macartney, Hugh, 2021. "What determines school segregation? The crucial role of neighborhood factors," Journal of Public Economics, Elsevier, vol. 194(C).
    8. Nora E. Gordon & Sarah J. Reber, 2020. "Federal Aid to School Districts During the COVID-19 Recession," NBER Working Papers 27550, National Bureau of Economic Research, Inc.

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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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