Rationalizing the E-Rate: The Effects of Subsidizing IT in Education
AbstractStarting in 1998, the E-Rate program has provided $2.25 billion to subsidize Internet access in schools and libraries serving low income populations in the US. I analyze the effect of E-Rate subsidies on educational outcomes for Texas high schools over the 1994-2003 time period. Consistent with previous economic analyses, I find few, if any, improvements in student achievements. I do find evidence that experienced teachers are reallocated within districts toward schools receiving E-Rate grants. I also find evidence that the pool of college entrance exam takers is affected by E-Rate grants such that relying on average scores could lead to incorrect conclusions.
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Bibliographic InfoPaper provided by NET Institute in its series Working Papers with number 05-25.
Length: 25 pages
Date of creation: Oct 2005
Date of revision: Oct 2005
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Web page: http://www.NETinst.org/
Education; Internet; Subsidy;
Find related papers by JEL classification:
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
- I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-26 (All new papers)
- NEP-EDU-2006-08-26 (Education)
- NEP-HRM-2006-08-26 (Human Capital & Human Resource Management)
- NEP-PBE-2006-08-26 (Public Economics)
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