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Educational resources and student achievement: Evidence from the Save Harmless provision in New York State

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  • Gigliotti, Philip
  • Sorensen, Lucy C.

Abstract

A long-standing debate in the economics of education literature is whether increasing educational resources moves the needle on student achievement. Education finance reformers advocate delivering extra resources to disadvantaged school districts to close academic achievement gaps, but their efforts are subject to criticism from skeptics who believe that extra resources do not actually improve performance. This study leverages variation in per-pupil expenditures from a specific provision of the state aid formula in New York State that allows districts to maintain prior levels of total state aid even as their student enrollment declines. We uncover achievement gains of approximately 0.047 standard deviations in math and 0.042 standard deviations in English corresponding to $1000 in additional per-pupil spending. This study strengthens the case that school resources matter, and that sustained financial investments can help districts maintain and improve quality of public education.

Suggested Citation

  • Gigliotti, Philip & Sorensen, Lucy C., 2018. "Educational resources and student achievement: Evidence from the Save Harmless provision in New York State," Economics of Education Review, Elsevier, vol. 66(C), pages 167-182.
    • Handle: RePEc:eee:ecoedu:v:66:y:2018:i:c:p:167-182
    DOI: 10.1016/j.econedurev.2018.08.004
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    References listed on IDEAS

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    Cited by:

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    2. María Orduz, 2022. "Effect of educational spending on academic performance under different institutional arrangements," Documentos CEDE 20224, Universidad de los Andes, Facultad de Economía, CEDE.
    3. Cordis, Adriana S. & Muzatko, Steven, 2021. "Higher education spending and CPA exam performance," Journal of Accounting Education, Elsevier, vol. 55(C).
    4. Josh B. McGee, 2023. "Yes, money matters, but the details can make all the difference," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1125-1132, September.
    5. C. Kirabo Jackson & Claudia Persico, 2023. "Point column on school spending: Money matters," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(4), pages 1118-1124, September.
    6. De Groote, Olivier, 2019. "Dynamic Effort Choice in High School: Costs and Benefits of an Academic Track," TSE Working Papers 19-1002, Toulouse School of Economics (TSE), revised Jun 2023.
    7. Danielle V. Handel & Eric A. Hanushek, 2023. "Contexts of Convenience: Generalizing from Published Evaluations of School Finance Policies," NBER Working Papers 31653, National Bureau of Economic Research, Inc.
    8. Brunner, Eric & Hoen, Ben & Hyman, Joshua, 2022. "School district revenue shocks, resource allocations, and student achievement: Evidence from the universe of U.S. wind energy installations," Journal of Public Economics, Elsevier, vol. 206(C).
    9. Kreisman, Daniel & Steinberg, Matthew P., 2019. "The effect of increased funding on student achievement: Evidence from Texas's small district adjustment," Journal of Public Economics, Elsevier, vol. 176(C), pages 118-141.
    10. Francesco Longo & Karl Claxton & James Lomas & Stephen Martin, 2020. "Does public long-term care expenditure improve care-related quality of life in England?," Working Papers 172cherp, Centre for Health Economics, University of York.
    11. C. Kirabo Jackson, 2018. "Does School Spending Matter? The New Literature on an Old Question," NBER Working Papers 25368, National Bureau of Economic Research, Inc.
    12. Francesco Longo & Karl Claxton & James Lomas & Stephen Martin, 2021. "Does public long‐term care expenditure improve care‐related quality of life of service users in England?," Health Economics, John Wiley & Sons, Ltd., vol. 30(10), pages 2561-2581, September.

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    More about this item

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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