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The Effect of Extra Funding for Disadvantaged Pupils on Achievement

  • Edwin Leuven

    (University of Amsterdam, School of Economics, and the Tinbergen Institute)

  • Mikael Lindahl

    (Swedish Institute for Social Research)

  • Hessel Oosterbeek

    (University of Amsterdam, School of Economics, and the Tinbergen Institute)

  • Dinand Webbink

    (CPB Netherlands Bureau for Economic Policy Analysis)

This paper evaluates the effects of two subsidies targeted at schools with large proportions of disadvantaged pupils. The first scheme gives primary schools with at least 70% disadvantaged minority pupils extra funding for personnel. The second scheme gives primary schools with at least 70% pupils from any disadvantaged group extra funding for computers and software. The cutoffs provide a regression discontinuity design that we exploit in a local difference-in-differences framework. For both subsidies we find negative point estimates, which are for some outcomes significantly different from 0. Extra funding for computers and software seems especially detrimental for girls' achievement. The negative effects of extra funding for computers and software are consistent with results from other recent studies casting doubt on the efficacy of computers in schools. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 89 (2007)
Issue (Month): 4 (November)
Pages: 721-736

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Handle: RePEc:tpr:restat:v:89:y:2007:i:4:p:721-736
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  1. Angrist, Joshua & Lavy, Victor, 2001. "New Evidence on Classroom Computers and Pupil Learning," IZA Discussion Papers 362, Institute for the Study of Labor (IZA).
  2. Hanushek, Eric A, 1986. "The Economics of Schooling: Production and Efficiency in Public Schools," Journal of Economic Literature, American Economic Association, vol. 24(3), pages 1141-77, September.
  3. Austan Goolsbee & Jonathan Guryan, 2002. "The Impact of Internet Subsidies in Public Schools," NBER Working Papers 9090, National Bureau of Economic Research, Inc.
  4. Papke, Leslie E., 2005. "The effects of spending on test pass rates: evidence from Michigan," Journal of Public Economics, Elsevier, vol. 89(5-6), pages 821-839, June.
  5. Edwin Leuven & Hessel Oosterbeek, 2002. "Evaluating the effect of tax deductions on training," Labor and Demography 0205001, EconWPA.
  6. Cecilia E. Rouse & Alan B. Krueger, 2004. "Putting Computerized Instruction to the Test: A Randomized Evaluation of a "Scientifically-based" Reading Program," NBER Working Papers 10315, National Bureau of Economic Research, Inc.
  7. Card, David & Payne, A. Abigail, 2002. "School finance reform, the distribution of school spending, and the distribution of student test scores," Journal of Public Economics, Elsevier, vol. 83(1), pages 49-82, January.
  8. Jonathan Guryan, 2001. "Does Money Matter? Regression-Discontinuity Estimates from Education Finance Reform in Massachusetts," NBER Working Papers 8269, National Bureau of Economic Research, Inc.
  9. Alan Krueger, 2000. "Economic Considerations and Class Size," Working Papers 826, Princeton University, Department of Economics, Industrial Relations Section..
  10. Hanushek, Eric A., 2006. "School Resources," Handbook of the Economics of Education, Elsevier.
  11. van der Klaauw, Wilbert, 2008. "Breaking the link between poverty and low student achievement: An evaluation of Title I," Journal of Econometrics, Elsevier, vol. 142(2), pages 731-756, February.
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