The Impact of Internet Subsidies in Public Schools
In an effort to alleviate the perceived growth of a digital divide, the U.S. government enacted a major subsidy for Internet and communications investment in schools starting in 1998. In this paper, we evaluate the effect of the subsidy-known as the E-Rate-on Internet investment in California public schools. The program subsidized spending by 20%-90%, depending on school characteristics. Using new data on school technology usage in every school in California from 1996 to 2000 as well as application data from the E-Rate program, the results indicate that the subsidy did succeed in significantly increasing Internet investment. The implied first-dollar price elasticity of demand for Internet investment is between - 0.4 and - 1.1 and the greatest sensitivity is seen among urban schools and schools with large black and Hispanic student populations. Rural and predominantly white and Asian schools show much less sensitivity. Overall, by the final year of the sample, there were approximately 68% more Internet-connected classrooms per teacher than there would have been without the subsidy. Using a variety of test score results, however, we do not find significant effects of the E-Rate program, at least so far, on student performance. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 88 (2006)
Issue (Month): 2 (May)
|Contact details of provider:|| Web page: http://mitpress.mit.edu/journals/|
|Order Information:||Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jerry Hausman, 1998. "Taxation by Telecommunications Regulation," Books, American Enterprise Institute, number 53052, September.
- James J. Heckman, 1977.
"Dummy Endogenous Variables in a Simultaneous Equation System,"
NBER Working Papers
0177, National Bureau of Economic Research, Inc.
- Heckman, James J, 1978. "Dummy Endogenous Variables in a Simultaneous Equation System," Econometrica, Econometric Society, vol. 46(4), pages 931-59, July.
- Jerry Hausman, 1997.
"Taxation by Telecommunications Regulation,"
NBER Working Papers
6260, National Bureau of Economic Research, Inc.
- Heckman, James J, 1979.
"Sample Selection Bias as a Specification Error,"
Econometric Society, vol. 47(1), pages 153-61, January.
- Joshua Angrist & Victor Lavy, 1999.
"New Evidence on Classroom Computers and Pupil Learning,"
NBER Working Papers
7424, National Bureau of Economic Research, Inc.
- Joshua Angrist & Victor Lavy, 2002. "New Evidence on Classroom Computers and Pupil Learning," Economic Journal, Royal Economic Society, vol. 112(482), pages 735-765, October.
- Angrist, Joshua & Lavy, Victor, 2001. "New Evidence on Classroom Computers and Pupil Learning," IZA Discussion Papers 362, Institute for the Study of Labor (IZA).
- Eriksson, Ross C & Kaserman, David L & Mayo, John W, 1998. "Targeted and Untargeted Subsidy Schemes: Evidence from Postdivestiture Efforts to Promote Universal Telephone Service," Journal of Law and Economics, University of Chicago Press, vol. 41(2), pages 477-502, October.
- Wolak, Frank A., 1996. "Can universal service survive in a competitive telecommunications environment? Evidence from the United States consumer expenditure survey," Information Economics and Policy, Elsevier, vol. 8(3), pages 163-203, September.
When requesting a correction, please mention this item's handle: RePEc:tpr:restat:v:88:y:2006:i:2:p:336-347. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Anna Pollock-Nelson)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.