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Adjusted Poverty Measures and the Distribution of Title I Aid: Does Title I Really Make the Rich States Richer?

Author

Listed:
  • Bruce D. Baker

    (Department of Educational Theory, Policy and Administration, Rutgers, The State University of New Jersey)

  • Lori Taylor

    (Bush School of Government and Public Service, Texas A&M University)

  • Jesse Levin

    (American Institutes for Research, San Mateo, CA)

  • Jay Chambers

    (American Institutes for Research, San Mateo, CA)

  • Charles Blankenship

    (American Institutes for Research, San Mateo, CA)

Abstract

Federal and state governments in the United States make extensive use of student poverty rates in compensatory aid programs like Title I. Unfortunately, the measures of student poverty that drive funding allocations under such programs are biased because they fail to reflect geographic differences in the cost of living. In this study, we construct alternative poverty income thresholds based on regional differences in the wage level for low-skilled workers. We then examine the distribution of Title I revenues after adjusting poverty rates for geographic differences in the cost of living and adjusting Title I revenues for geographic differences in the purchasing power of school districts. Our findings turn conventional wisdom on its head. We find that when we fully adjust for regional differences, Title I funding patterns disproportionately favor rural school districts in low cost-of-living states. We conclude with policy recommendations for revising Title I funding formulas. © 2013 Association for Education Finance and Policy

Suggested Citation

  • Bruce D. Baker & Lori Taylor & Jesse Levin & Jay Chambers & Charles Blankenship, 2013. "Adjusted Poverty Measures and the Distribution of Title I Aid: Does Title I Really Make the Rich States Richer?," Education Finance and Policy, MIT Press, vol. 8(3), pages 394-417, July.
    • Handle: RePEc:tpr:edfpol:v:8:y:2013:i:3:p:394-417
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    References listed on IDEAS

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    1. Duncombe, William & Yinger, John, 2005. "How much more does a disadvantaged student cost?," Economics of Education Review, Elsevier, vol. 24(5), pages 513-532, October.
    2. Gyourko, Joseph & Tracy, Joseph, 1989. "The Importance of Local Fiscal Conditions in Analyzing Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 97(5), pages 1208-1231, October.
    3. Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-1278, December.
    4. Bruce D. Meyer & James X. Sullivan, 2012. "Identifying the Disadvantaged: Official Poverty, Consumption Poverty, and the New Supplemental Poverty Measure," Journal of Economic Perspectives, American Economic Association, vol. 26(3), pages 111-136, Summer.
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    Cited by:

    1. Lori Taylor & Shawna Grosskopf & Kathy Hayes & Laura Razzolini, 2023. "The role of poverty measurements in achieving educational equity through school finance reform," Journal of Productivity Analysis, Springer, vol. 60(2), pages 109-127, October.

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    More about this item

    Keywords

    Title I; student poverty;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

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