Equalizing educational opportunity through educational finance reform
AbstractWe analyze the reallocations of educational expenditures required to equalize opportunities, according to the theory of Roemer (1998). Using the NLSYM data set, we find that implementing an equal-opportunity policy across men of different races, by using educational finance as the instrument, and holding per capita educational finance fixed, would require spending six to ten times as much on black students, per capita, as on white students. Implementing an equal-opportunity policy across men from different socio-economic backgrounds, but ignoring race, does almost nothing to equalize opportunities for men of different races. Raising the school-leaving age by one year, as opposed to increasing spending per pupil directly, is a relatively inexpensive way of reducing inequality of opportunity across races, but the reduction in opportunity inequality it achieves is very small.
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Bibliographic InfoPaper provided by University of California, Davis, Department of Economics in its series Working Papers with number 998.
Date of creation: 16 Jan 2003
Date of revision:
Equal Opportunity; Educational Finance; School Quality;
Other versions of this item:
- Julian R. Betts & John E. Roemer, . "Equalizing educational opportunity through educational finance reform," Department of Economics 99-8, California Davis - Department of Economics.
- D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- I28 - Health, Education, and Welfare - - Education - - - Government Policy
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