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Returns to School Spending in Rural America: Evidence from Wisconsin's Sparsity Aid Program

Author

Listed:
  • Acton, Riley

    (Miami University)

  • Orr, Cody

    (U.S. Census Bureau)

  • Rogers, Salem

    (Michigan State University)

Abstract

We study the effects of increased school spending in rural American school districts by leveraging the introduction and subsequent expansion of Wisconsin's Sparsity Aid Program. We find that the program, which provides additional state funding to small and isolated school districts, increased spending in eligible districts by 2% annually and that districts primarily allocated funds to areas with low baseline budget shares. This increased spending has little effect on standardized test scores, but modestly increases college enrollment and completion for students with a low likelihood of attending or completing college.

Suggested Citation

  • Acton, Riley & Orr, Cody & Rogers, Salem, 2023. "Returns to School Spending in Rural America: Evidence from Wisconsin's Sparsity Aid Program," IZA Discussion Papers 15915, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp15915
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    File URL: https://docs.iza.org/dp15915.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    school finance; educational attainment; rural schools;
    All these keywords.

    JEL classification:

    • 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
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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