Advanced Search
MyIDEAS: Login to save this article or follow this journal

Does money matter for schools?

Contents:

Author Info

  • Holmlund, Helena
  • McNally, Sandra
  • Viarengo, Martina

Abstract

There is considerable disagreement in the academic literature about whether raising school expenditure improves educational outcomes. Yet changing the level of resources is one of the key policy levers open to governments. In England, school expenditure has increased by about 40% since 2000. Thus assessing whether such spending has had an impact on educational outcomes is of paramount importance. We address this issue using data of better quality than what are often available in similar studies and test our identification assumption by use of a falsification test. We find that the increase in school expenditure over recent years has had a consistently positive effect on outcomes at the end of primary school. Back-of-envelope calculations suggest that the investment may well be cost-effective. There is also some evidence of heterogeneity in the effect of expenditure, with higher effects for students who come from economically disadvantaged backgrounds.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/B6VB9-50G06CB-1/2/30617b33e0831c82c7cdd2755a6cf40a
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Economics of Education Review.

Volume (Year): 29 (2010)
Issue (Month): 6 (December)
Pages: 1154-1164

as in new window
Handle: RePEc:eee:ecoedu:v:29:y:2010:i:6:p:1154-1164

Contact details of provider:
Web page: http://www.elsevier.com/locate/econedurev

Related research

Keywords: Education Resources;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Sengupta, Jati K. & Sfeir, Raymond E., 1986. "Production frontier estimates of scale in public schools in California," Economics of Education Review, Elsevier, vol. 5(3), pages 297-307, June.
  2. Stephen Machin & Sandra McNally, 2004. "The Literacy Hour," CEE Discussion Papers 0043, Centre for the Economics of Education, LSE.
  3. Gibbons, Steve & Machin, Stephen & Silva, Olmo, 2006. "Choice, Competition and Pupil Achievement," IZA Discussion Papers 2214, Institute for the Study of Labor (IZA).
  4. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  5. Alan B. Krueger, 2000. "Economic Considerations and class size," Working Papers 975, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Research on Child Wellbeing..
  6. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
  7. Joshua D. Angrist & Victor Lavy, 1999. "Using Maimonides' Rule To Estimate The Effect Of Class Size On Scholastic Achievement," The Quarterly Journal of Economics, MIT Press, vol. 114(2), pages 533-575, May.
  8. Link, Charles R. & Mulligan, James G., 1991. "Classmates' effects on black student achievement in public school classrooms," Economics of Education Review, Elsevier, vol. 10(4), pages 297-310, December.
  9. Jonathan Guryan, 2001. "Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts," NBER Working Papers 8269, National Bureau of Economic Research, Inc.
  10. Joydeep Roy, 2004. "Impact of School Finance Reform on Resource Equalization and Academic Performance: Evidence from Michigan," Econometric Society 2004 North American Summer Meetings 425, Econometric Society.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Stephen Gibbons & Sandra McNally & Martina Viarengo, 2011. "Does Additional Spending Help Urban Schools? An Evaluation Using Boundary Discontinuities," CEE Discussion Papers 0128, Centre for the Economics of Education, LSE.
  2. Haegeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2008. "Pennies from Heaven? Using Exogeneous Tax Variation to Identify Effects of School Resources on Pupil Achievements," IZA Discussion Papers 3561, Institute for the Study of Labor (IZA).
  3. Tommaso Agasisti & Sergio Longobardi, 2012. "Inequality in education: can Italian disadvantaged students close the gap? A focus on resilience in the Italian school system," Working Papers 2012/39, Institut d'Economia de Barcelona (IEB).
  4. De Witte, Kristof & Geys, Benny & Solondz, Catharina, 2012. "Public expenditures, educational outcomes and grade inflation: Theory and evidence from a policy intervention in the Netherlands," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2012-111, Social Science Research Center Berlin (WZB).
  5. Monique De Haan, 2012. "The Effect of Additional Funds for Low-Ability Pupils - A Nonparametric Bounds Analysis," CESifo Working Paper Series 3993, CESifo Group Munich.
  6. Mihály Fazekas, 2012. "School Funding Formulas: Review of Main Characteristics and Impacts," OECD Education Working Papers 74, OECD Publishing.
  7. Liang-Cheng Zhang & Tian-Ming Sheu, 2013. "Effective investment strategies on mathematics performance in rural areas," Quality & Quantity: International Journal of Methodology, Springer, vol. 47(5), pages 2999-3017, August.
  8. Pal, Sarmistha & Saha, Bibhas, 2014. "In 'Trusts' We Trust: Socially Motivated Private Schools in Nepal," IZA Discussion Papers 8270, Institute for the Study of Labor (IZA).
  9. Ziesemer, Thomas, 2011. "What Changes Gini Coefficients of Education? On the dynamic interaction between education, its distribution and growth," MERIT Working Papers 053, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  10. Ruth Lupton & John Hills & Kitty Stewart & Polly Vizard, 2013. "Labour’s social policy record: policy, spending and outcomes 1997-2010," LSE Research Online Documents on Economics 51070, London School of Economics and Political Science, LSE Library.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:ecoedu:v:29:y:2010:i:6:p:1154-1164. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.