The effect of administrative pay and local property taxes on student achievement scores: Evidence from New Jersey public schools
AbstractWe theorized that student test score performance will be positively related to the percentage of school district revenues raised from local taxes and with salary levels of school district administrators. Using both fixed and random effects panel analyses, we examine data for 217 Kindergarten-to-Grade 12 school districts in New Jersey for the years 2002–2009. Our results support the inference that increases in the percent of school funds raised locally have a positive influence on student test scores. However, the results for our hypothesis involving administrative costs were mixed. Administrative salaries and administrative spending were found to be positively related to test score performance in the one-way time fixed effects model, but not in the two-way models. Finally, classroom spending and the student–faculty ratio were found to be positive and significant in some of the tests, although not robust to alternative specifications.
Download InfoIf 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.
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 InfoArticle provided by Elsevier in its journal Economics of Education Review.
Volume (Year): 34 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/econedurev
Student achievement scores; Property taxes; School district administrative costs;
Find related papers by JEL classification:
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- M40 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - General
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.:
- Arellano, Manuel & Bond, Stephen, 1991.
"Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations,"
Review of Economic Studies,
Wiley Blackwell, vol. 58(2), pages 277-97, April.
- Tom Doan, . "RATS program to replicate Arellano-Bond 1991 dynamic panel," Statistical Software Components RTZ00169, Boston College Department of Economics.
- James, Estelle & King, Elizabeth M. & Suryadi, Ace, 1996. "Finance, management, and costs of public and private schools in Indonesia," Economics of Education Review, Elsevier, vol. 15(4), pages 387-398, October.
- Fuller, Wayne A. & Battese, George E., 1974. "Estimation of linear models with crossed-error structure," Journal of Econometrics, Elsevier, vol. 2(1), pages 67-78, May.
- Sanjiv Jaggia & Alison Kelly-Hawke, 1999. "An Analysis Of The Factors That Influence Student Performance: A Fresh Approach To An Old Debate," Contemporary Economic Policy, Western Economic Association International, vol. 17(2), pages 189-198, 04.
- Charles Jacques & B. Wade Brorsen, 2002. "Relationship between types of school district expenditures and student performance," Applied Economics Letters, Taylor & Francis Journals, vol. 9(15), pages 997-1002.
- Jacques, Charles & Brorsen, B. Wade, 1998. "Can Money Diminish Student Performance Disparities Across Regions?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 28(2).
- Eric A. Hanushek, 1979. "Conceptual and Empirical Issues in the Estimation of Educational Production Functions," Journal of Human Resources, University of Wisconsin Press, vol. 14(3), pages 351-388.
- Jimenez, Emmanuel & Paqueo, Vicente, 1996. "Do local contributions affect the efficiency of public primary schools?," Economics of Education Review, Elsevier, vol. 15(4), pages 377-386, October.
- Edward L. Glaeser, 1995.
"The Incentive Effects of Property Taxes on Local Governments,"
NBER Working Papers
4987, National Bureau of Economic Research, Inc.
- Glaeser, Edward L, 1996. " The Incentive Effects of Property Taxes on Local Governments," Public Choice, Springer, vol. 89(1-2), pages 93-111, October.
- Sander, William, 1999. "Endogenous expenditures and student achievement," Economics Letters, Elsevier, vol. 64(2), pages 223-231, August.
- Brewer, Dominic J., 1996. "Does more school district administration lower educational productivity? Some evidence on the "Administrative Blob" in New York public schools," Economics of Education Review, Elsevier, vol. 15(2), pages 111-124, April.
- Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 2001.
"Disruption versus Tiebout Improvement: The Costs and Benefits of Switching Schools,"
NBER Working Papers
8479, National Bureau of Economic Research, Inc.
- Hanushek, Eric A. & Kain, John F. & Rivkin, Steven G., 2004. "Disruption versus Tiebout improvement: the costs and benefits of switching schools," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1721-1746, August.
- Kenneth J. Meier & Laurence J. O'Toole, 2002. "Public management and organizational performance: The effect of managerial quality," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(4), pages 629-643.
- Breusch, T S & Pagan, A R, 1980.
"The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics,"
Review of Economic Studies,
Wiley Blackwell, vol. 47(1), pages 239-53, January.
- Breusch, T.S. & Pagan, A.R., . "The Lagrange multiplier test and its applications to model specification in econometrics," CORE Discussion Papers RP -412, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- 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.
- Thomas S. Dee, 2005. "Expense Preference and Student Achievement in School Districts," Eastern Economic Journal, Eastern Economic Association, vol. 31(1), pages 23-44, Winter.
- Andrews, Matthew & Duncombe, William & Yinger, John, 2002. "Revisiting economies of size in American education: are we any closer to a consensus?," Economics of Education Review, Elsevier, vol. 21(3), pages 245-262, June.
- Heinesen, Eskil, 2005. "School district size and student educational attainment: evidence from Denmark," Economics of Education Review, Elsevier, vol. 24(6), pages 677-689, December.
- Hoxby, Caroline M., 1999. "The productivity of schools and other local public goods producers," Journal of Public Economics, Elsevier, vol. 74(1), pages 1-30, October.
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.