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A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case

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Author Info

  • BenDavid-Hadar, Iris

    ()
    (Bar-Ilan University)

  • Ziderman, Adrian

    ()
    (Bar-Ilan University)

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    Abstract

    This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper (Improvement in the Educational Achievement Distribution, or IEAD). The development of the budget allocation formula is demonstrated utilizing Israeli data. Large scale, nationwide data sets relating students’ academic achievement to student background variables, teacher profiles and school characteristics, were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.

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    Bibliographic Info

    Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4822.

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    Length: 41 pages
    Date of creation: Mar 2010
    Date of revision:
    Publication status: published in: Education Economics, 2011, 19 (3), 341-362,
    Handle: RePEc:iza:izadps:dp4822

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    Related research

    Keywords: needs-based funding; formular funding; school finance; schools resource allocation; Israel;

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    1. Ludger Woessmann, 2006. "Efficiency and Equity of European Education and Training Policies," CESifo Working Paper Series 1779, CESifo Group Munich.
    2. Philip Oreopoulos & Daniel Lang & Joshua Angrist, 2009. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 136-63, January.
    3. Rosalind Levacic & Anna Vignoles, 2002. "Researching the Links between School Resources and Student Outcomes in the UK: A Review of Issues and Evidence," Education Economics, Taylor & Francis Journals, vol. 10(3), pages 313-331.
    4. Nick Adnett & Spiros Bougheas & Peter Davies, . "Market-Based Reforms of Public Schooling: Some Unpleasant Dynamics," Working Papers 994, Staffordshire University, Business School.
    5. Ben-David, D., 2000. "Teach your Children Well: Planting the Seeds of Education and Harvesting the Benefits of Trade," Papers 2000-5, Tel Aviv.
    6. Ritzen, Jozef M. M. & van Dommelen, Jan & De Vijlder, Frans J., 1997. "School finance and school choice in the Netherlands," Economics of Education Review, Elsevier, vol. 16(3), pages 329-335, June.
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