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Using the Psid to Study the Effects of School Spending


  • Kathryn Wilson

    (Kent State University)


Many studies have examined the effects of school spending on educational attainment, and the results have been mixed. Unfortunately, most of these studies have had limited information about the family and neighborhood characteristics that may affect a student's educational attainment. This articles uses a unique data set that adds school-level data from the Common Core of Data to the rich source of family and neighborhood information of the Panel Study of Income Dynamics. It is found that school spending is positively related to the likelihood a student will graduate from high school and attend college and to the student's years of schooling. In addition, the results for high school graduation are sensitive to the inclusion of variables often not available in previous studies, suggesting that omitted-variables bias may result in studies concluding that money does not matter when, indeed, school spending is important.

Suggested Citation

  • Kathryn Wilson, 2000. "Using the Psid to Study the Effects of School Spending," Public Finance Review, , vol. 28(5), pages 428-451, September.
  • Handle: RePEc:sae:pubfin:v:28:y:2000:i:5:p:428-451

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    Cited by:

    1. Lee Rainwater & Timothy Smeeding & Irwin Garfinkel, 2004. "Welfare State Expenditures and the Distribution of Child Opportunities," LIS Working papers 379, LIS Cross-National Data Center in Luxembourg.
    2. Hans J. Baumgartner, 2003. "Are There Any Class Size Effects On Early Career Earnings In West Germany?," HEW 0305004, EconWPA, revised 05 Nov 2003.
    3. Kathryn Wilson & Kristina Lambright & Timothy M. Smeeding, 2004. "School Finance, Equivalent Educational Expenditure, and Income Distribution: Equal Dollars or Equal Chances for Success?," Center for Policy Research Working Papers 62, Center for Policy Research, Maxwell School, Syracuse University.
    4. Fiona Steele & Anna Vignoles & Andrew Jenkins, 2007. "The effect of school resources on pupil attainment: a multilevel simultaneous equation modelling approach," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 170(3), pages 801-824.
    5. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers WP207, Economic and Social Research Institute (ESRI).
    6. Irwin Garfinkel & Lee Rainwater & Timothy M. Smeeding, 2006. "A re-examination of welfare states and inequality in rich nations: How in-kind transfers and indirect taxes change the story," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 897-919.
    7. Wilson, Kathryn, 2002. "The effects of school quality on income," Economics of Education Review, Elsevier, vol. 21(6), pages 579-588, December.
    8. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2008. "Short-run distributional effects of public education transfers to tertiary education students in seven European countries," Education Economics, Taylor & Francis Journals, vol. 16(3), pages 275-288.
    9. Timothy Smeeding & Irwin Garfinkel & Lee Rainwater, 2005. "Welfare State Expenditures and the Redistribution of Well-Being: Children, Elders, and Others in Comparative Perspective," LIS Working papers 387, LIS Cross-National Data Center in Luxembourg.

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