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The effect of funding for disadvantaged students on academic underachievement

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Listed:
  • Oleg Badunenko

    (Brunel University of London)

  • Deni Mazrekaj

    (Utrecht University, Department of Sociology
    University of Oxford, Nuffield College
    KU Leuven, Leuven Economics of Education Research)

  • Subal C. Kumbhakar

    (State University of New York
    Czech University of Life Sciences)

  • Kristof Witte

    (Leuven Economics of Education Research (LEER), KU Leuven
    United Nations University—Maastricht Economic and Social Research Institute on Innovation and Technology (UNU-MERIT))

Abstract

We estimate the effect of school funding for disadvantaged students on academic underachievement in primary education. For this purpose, we exploit a policy in Belgium that granted additional funding for schools with a share of disadvantaged students of at least 10%. Combining stochastic frontier analysis (a method to measure efficiency) with regression discontinuity design, we find that while additional funding does not affect achievement, it does help reduce underachievement. As a result, the policy has helped bringing students impacted by it closer to realizing their full potential compared to their peers who were not included in the policy. From a policy perspective, our findings indicate that maintaining targeted remedial measures is essential for enhancing effectiveness. Additionally, we emphasize the importance of analyzing both underachievement and achievement.

Suggested Citation

  • Oleg Badunenko & Deni Mazrekaj & Subal C. Kumbhakar & Kristof Witte, 2025. "The effect of funding for disadvantaged students on academic underachievement," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-9, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05524-1
    DOI: 10.1057/s41599-025-05524-1
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