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Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South

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  • Elizabeth U. Cascio
  • Nora E. Gordon
  • Sarah J. Reber

Abstract

Title I of the 1965 Elementary and Secondary Education Act substantially increased federal aid for education, with the goal of expanding educational opportunity. Combining the timing of the program’s introduction with variation in its intensity, we find that Title I increased school spending by 46 cents on the dollar in the average school district in the South and increased spending nearly dollar-for-dollar in Southern districts with little scope for local offset. Based on this differential fiscal response, we find that increases in school budgets from Title I decreased high school dropout rates for whites, but not blacks.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17155.

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Date of creation: Jun 2011
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Publication status: published as “Local Responses to Federal Grants : Evidence from the Introduction of Ti tle I in the South” (with Nora Gordon and Sarah Reber), American Economic Jour nal: Economic Policy , 5(3), 126-159, August 2013.
Handle: RePEc:nbr:nberwo:17155

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Cited by:
  1. Elizabeth U. Cascio & Ebonya L. Washington, 2012. "Valuing the Vote: The Redistribution of Voting Rights and State Funds Following the Voting Rights Act of 1965," NBER Working Papers 17776, National Bureau of Economic Research, Inc.
  2. Carruthers, Celeste K. & Wanamaker, Marianne H., 2013. "Closing the gap? The effect of private philanthropy on the provision of African-American schooling in the U.S. south," Journal of Public Economics, Elsevier, Elsevier, vol. 101(C), pages 53-67.

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