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Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education

Author

Listed:
  • Thomas Goldring
  • Brian Jacob
  • Daniel Kreisman
  • Michael Ricks

Abstract

In 2015, Michigan increased its Career and Technical Education (CTE) funding and changed its funding formula to reimburse programs-based student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.

Suggested Citation

  • Thomas Goldring & Brian Jacob & Daniel Kreisman & Michael Ricks, 2024. "Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education," NBER Working Papers 32390, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:32390
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    More about this item

    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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