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Do School Resources Matter Only for Older Workers?

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  • Betts, Julian R

Abstract

The literature that examines the impact of school spending on students' subsequent earnings is bifurcated into state-level studies, which typically find strong effects, and school-level studies, which find little effect. Since most of the school-level studies examine young workers, one explanation for the discrepancy is that school inputs benefit workers only as they gain job experience. This paper tests the hypothesis by using both school-level (National Longitudinal Survey of Youth) and state-level data sources (Census and the Biennial Survey of Education). Both data sets suggest that there is typically no significant age dependence. Thus other explanations of the discrepancy are likely to explain the differing results. Copyright 1996 by MIT Press.

Suggested Citation

  • Betts, Julian R, 1996. "Do School Resources Matter Only for Older Workers?," The Review of Economics and Statistics, MIT Press, vol. 78(4), pages 638-652, November.
  • Handle: RePEc:tpr:restat:v:78:y:1996:i:4:p:638-52
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    References listed on IDEAS

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    1. Griliches, Zvi & Mason, William M, 1972. "Education, Income, and Ability," Journal of Political Economy, University of Chicago Press, vol. 80(3), pages 74-103, Part II, .
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    7. Orazem, Peter F, 1987. "Black-White Differences in Schooling Investment and Human Capital Production in Segregated Schools," American Economic Review, American Economic Association, pages 714-723.
    8. Betts, Julian R, 1995. "Does School Quality Matter? Evidence from the National Longitudinal Survey of Youth," The Review of Economics and Statistics, MIT Press, pages 231-250.
    9. Grogger, Jeff, 1996. "Does School Quality Explain the Recent Black/White Wage Trend?," Journal of Labor Economics, University of Chicago Press, vol. 14(2), pages 231-253, April.
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    11. Zvi Griliches, 1970. "Notes on the Role of Education in Production Functions and Growth Accounting," NBER Chapters,in: Education, Income, and Human Capital, pages 71-127 National Bureau of Economic Research, Inc.
    12. Orazem, Peter F, 1987. "Black-White Differences in Schooling Investment and Human Capital Production in Segregated Schools," American Economic Review, American Economic Association, pages 714-723.
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    Citations

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    Cited by:

    1. Maria Iacovou, 2002. "Class Size in the Early Years: Is Smaller Really Better?," Education Economics, Taylor & Francis Journals, vol. 10(3), pages 261-290.
    2. Marlow, Michael L., 1999. "Spending, school structure, and public education quality. Evidence from California," Economics of Education Review, Elsevier, vol. 19(1), pages 89-106, February.
    3. Justin L. Tobias & Mingliang Li, 2003. "A finite-sample hierarchical analysis of wage variation across public high schools: evidence from the NLSY and high school and beyond," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(3), pages 315-336.
    4. Raaum, Oddbjørn & Salvanes, Kjell G. & Sørensen, Erik Ø., 2003. "The Impact of a Primary School Reform on Educational Stratification: A Norwegian Study of Neighbour and School Mate Correlations," IZA Discussion Papers 953, Institute for the Study of Labor (IZA).
    5. Constant, Amelie F. & Konstantopoulos, Spyros, 2002. "School Effects and Labor Market Outcomes for Young Adults in the 1980s and 1990s," IZA Discussion Papers 671, Institute for the Study of Labor (IZA).
    6. Manuel Salas Velasco, 2004. "Rendimientos privados de las inversiones en educación superior a partir de ecuaciones de ingresos," Hacienda Pública Española, IEF, vol. 169(2), pages 87-117, June.
    7. Tobias, Justin L., 2002. "Model uncertainty and race and gender heterogeneity in the college entry decision," Economics of Education Review, Elsevier, vol. 21(3), pages 211-219, June.
    8. Justin Tobias, 2003. "The effects of cognitive ability and high school quality on college entry decisions: nonparametric estimation of parameters of interest," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 209-215.
    9. Bedi, Arjun Singh & Edwards, John H. Y., 2002. "The impact of school quality on earnings and educational returns--evidence from a low-income country," Journal of Development Economics, Elsevier, pages 157-185.
    10. Haegeland, Torbjørn & Raaum, Oddbjørn & Salvanes, Kjell G., 2005. "Pupil Achievement, School Resources and Family Background," IZA Discussion Papers 1459, Institute for the Study of Labor (IZA).
    11. Torbjørn Hægeland & Oddbjørn Raaum & Kjell G. Salvanes, 2004. "Pupil achievement, school resources and family backgr," Discussion Papers 397, Statistics Norway, Research Department.
    12. Unnever, James D. & Kerckhoff, Allan C. & Robinson, Timothy J., 2000. "District variations in educational resources and student outcomes," Economics of Education Review, Elsevier, vol. 19(3), pages 245-259, June.
    13. Sander, William, 1999. "Endogenous expenditures and student achievement," Economics Letters, Elsevier, vol. 64(2), pages 223-231, August.
    14. C. A. Olson & D. Ackerman, "undated". "High School Inputs and Labor Market Outcomes for Male Workers in Their Mid-Thirties: New Data and New Estimates from Wisconsin," Institute for Research on Poverty Discussion Papers 1205-00, University of Wisconsin Institute for Research on Poverty.

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