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Passing school building tax levies may increase teacher salary

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  • Brasington, David M.

Abstract

We examine 4000 votes on school district tax levies for capital expenditures in Ohio over 24 years. We find that passing school building tax levies increases average teacher salaries by 1%. The effects are generally present one through three years after levy passage. Quantile regression shows that teachers already in the highest-paid districts receive even larger salary increases than teachers in lower-paid districts. This may be the first regression discontinuity capital expenditures study to look specifically at teacher salary or use quantile regression.

Suggested Citation

  • Brasington, David M., 2018. "Passing school building tax levies may increase teacher salary," Economics Letters, Elsevier, vol. 163(C), pages 87-89.
  • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:87-89
    DOI: 10.1016/j.econlet.2017.12.004
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    References listed on IDEAS

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    1. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
    2. Sebastian Calonico & Matias D. Cattaneo & Rocio Titiunik, 2014. "Robust Nonparametric Confidence Intervals for Regression‐Discontinuity Designs," Econometrica, Econometric Society, vol. 82, pages 2295-2326, November.
    3. Stephanie Riegg Cellini & Fernando Ferreira & Jesse Rothstein, 2010. "The Value of School Facility Investments: Evidence from a Dynamic Regression Discontinuity Design," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 125(1), pages 215-261.
    4. Conlin, Michael & Thompson, Paul N., 2017. "Impacts of new school facility construction: An analysis of a state-financed capital subsidy program in Ohio," Economics of Education Review, Elsevier, vol. 59(C), pages 13-28.
    5. Neilson, Christopher A. & Zimmerman, Seth D., 2014. "The effect of school construction on test scores, school enrollment, and home prices," Journal of Public Economics, Elsevier, vol. 120(C), pages 18-31.
    6. Hong, Kai & Zimmer, Ron, 2016. "Does Investing in School Capital Infrastructure Improve Student Achievement?," Economics of Education Review, Elsevier, vol. 53(C), pages 143-158.
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    8. Brasington, David M., 2017. "School spending and new construction," Regional Science and Urban Economics, Elsevier, vol. 63(C), pages 76-84.
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    More about this item

    Keywords

    School finance; Regression discontinuity; Capital expenditures; School inputs; Property tax;
    All these keywords.

    JEL classification:

    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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