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School Expenditures and Post-schooling Earnings: Evidence from High School and Beyond

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Author Info
Grogger, Jeff

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Abstract

Studies based on inputs measured at the state level generally report that school expenditures have substantial effects on students' adult wages, whereas studies based on less aggregated measures report small effects. The author uses wage data from High School and Beyond to analyze this discrepancy, and to estimate the effect of school expenditures on students' post-schooling earnings. The author finds that the discrepancy in the literature stems mostly from two factors: measurement error in district-level expenditures and omitted state effects in the earnings regression. The author also finds that the effect of school expenditures on earnings is significant but small. A 10% increase in school spending would increase students' adult wages by only 0.68%. Copyright 1996 by MIT Press.

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Publisher Info
Article provided by MIT Press in its journal Review of Economics & Statistics.

Volume (Year): 78 (1996)
Issue (Month): 4 (November)
Pages: 628-37
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Handle: RePEc:tpr:restat:v:78:y:1996:i:4:p:628-37

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  1. Justin L. Tobias & Mingliang Li, 2003. "A finite-sample hierarchical analysis of wage variation across public high schools: evidence from the NLSY and high school and beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 315-336. [Downloadable!]
  2. Rosalind Levacic & Stephen Machin & David Reynolds & Anna Vignoles & James Walker, 2000. "The Relationship between Resource Allocation and Pupil Attainment: A Review," CEE Discussion Papers 0002, Centre for the Economics of Education, LSE. [Downloadable!]
  3. David Card & Alan Krueger, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," NBER Working Papers 5708, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Jung Hur & Yohanes E. Riyanto, 2007. "Organizational Structure and Product Market Competition," Departmental Working Papers wp0705, National University of Singapore, Department of Economics. [Downloadable!]
  5. Geoffrey C. Rapp, 2000. "Agency and Choice in Education: does school choice enhance the work effort of teachers?," Education Economics, Taylor and Francis Journals, vol. 8(1), pages 37-63, April. [Downloadable!] (restricted)
  6. Mingliang Li, 2006. "High school completion and future youth unemployment: new evidence from High School and Beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(1), pages 23-53. [Downloadable!]
  7. repec:ese:iserwp: is not listed on IDEAS
  8. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2005. "Long-Term Impacts of the Oportunidades Conditional Cash Transfer Program on Rural Youth in Mexico," Ibero America Institute for Econ. Research (IAI) Discussion Papers 122, Ibero-America Institute for Economic Research. [Downloadable!]
  9. Bacolod, Marigee & Tobias, Justin, 2005. "Schools, School Quality and Academic Achievement: Evidence from the Philippines," Staff General Research Papers 12249, Iowa State University, Department of Economics.
  10. Julian Betts & John Roemer, 2005. "Equalizing Opportunity for Racial and Socioeconomic Groups in the United States Through Educational Finance Reform," University of California at San Diego, Economics Working Paper Series 2005-14, Department of Economics, UC San Diego. [Downloadable!]
  11. Florence Arestoff, 2000. "Taux de rendement de l’éducation sur le marché du travail d’un pays en développement Un réexamen du modèle de gains de Mincer," Working Papers DT/2000/11, DIAL (Développement, Institutions & Analyses de Long terme). [Downloadable!]
  12. Maria Iacovou, 2002. "Class Size in the Early Years: Is Smaller Really Better?," Education Economics, Taylor and Francis Journals, vol. 10(3), pages 261-290, December. [Downloadable!] (restricted)
  13. C. A. Olson & D. Ackerman, . "High School Inputs and Labor Market Outcomes for Male Workers in Their Mid-Thirties: New Data and New Estimates from Wisconsin," Institute for Research on Poverty Discussion Papers 1205-00, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  14. Justin L. Tobias, 2003. "The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest," Applied Economics, Taylor and Francis Journals, vol. 35(2), pages 209-215, January. [Downloadable!] (restricted)
  15. Thomas S. Dee & William N. Evans & Sheila E. Murray, 1999. "Data Watch: Research Data in the Economics of Education," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 205-216, Summer. [Downloadable!] (restricted)
  16. Manuel Salas Velasco, 2004. "Rendimientos privados de las inversiones en educación superior a partir de ecuaciones de ingresos," Hacienda Pública Española, IEF, vol. 169(2), pages 87-117, June. [Downloadable!]
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