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Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South

Author

Listed:
  • Elizabeth U. Cascio
  • Nora Gordon
  • Sarah Reber

Abstract

We analyze the effects of the introduction of Title I of the 1965 Elementary and Secondary Education Act, a large federal grants program designed to increase poor students' educational services and achievement. We focus on the South, the poorest region of the country. Title I increased school spending by $0.50 on the dollar in the average southern school district and by more in districts with less ability to offset grants through local tax reductions. Title I-induced increases in school budgets appear to have reduced high school dropout rates of whites, but not blacks.

Suggested Citation

  • Elizabeth U. Cascio & Nora Gordon & Sarah Reber, 2013. "Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 126-159, August.
    • Handle: RePEc:aea:aejpol:v:5:y:2013:i:3:p:126-59
    Note: DOI: 10.1257/pol.5.3.126
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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • 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
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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    1. Local Responses to Federal Grants: Evidence from the Introduction of Title I in the South (American Economic Journal: Economic Policy 2013) in ReplicationWiki

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