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The Returns to Public Library Investment

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Abstract

Local governments spend over 12 billion dollars annually funding the operation of 17,000 public libraries in the United States, yet we know little about their effects. We use data describing the near-universe of public libraries to show that public library investment increases children’s attendance at library events by 18%, children’s checkouts of items by 21%, and library visits by 21%. Increases in library use translate into improved test scores in nearby school districts: a $1,000 or greater per-student capital investment in local public libraries increases reading test scores by 0.02 standard deviations and has no effects on math test scores.

Suggested Citation

  • Gregory Gilpin & Ezra Karger & Peter Nencka, 2021. "The Returns to Public Library Investment," Working Paper Series WP-2021-06, Federal Reserve Bank of Chicago, revised 20 Jul 2021.
    • Handle: RePEc:fip:fedhwp:92066
    DOI: 10.21033/wp-2021-06
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    Cited by:

    1. Bigelow, Daniel P. & Kuethe, Todd, 2023. "The impact of preferential farmland taxation on local public finances," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    2. Karger, Ezra, 2021. "The Long-Run Effect of Public Libraries on Children: Evidence from the Early 1900s," SocArXiv e8k7p, Center for Open Science.
    3. Borges Ferreira Neto, Amir & Nowicki, Jennifer & Shakya, Shishir, 2021. "Do Public Libraries Help Mitigate Crime? Evidence from Kansas City, MO," MPRA Paper 111073, University Library of Munich, Germany.

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    More about this item

    Keywords

    public libraries; capital spending; test scores;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General

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