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Understanding the Twentieth-Century Growth in U.S. School Spending

Author

Listed:
  • Eric A. Hanushek
  • Steven G. Rivkin

Abstract

Persistent increases in spending on elementary and secondary schools have gone virtually undocumented. Real expenditure per student increased 3½ percent per year over the period 1890-1990. Decomposition of the spending growth shows that it resulted from a combination of falling pupil-staff ratios, increasing real wages to teachers, and rising expenditure outside of the classroom. Although the expansion of education for the handicapped has had a disproportionate effect on spending, most of the growth in expenditure during the 1980s came from other sources. Significant teacher salary increases, particularly for females, have failed to keep up with wages in other occupations.

Suggested Citation

  • Eric A. Hanushek & Steven G. Rivkin, 1997. "Understanding the Twentieth-Century Growth in U.S. School Spending," Journal of Human Resources, University of Wisconsin Press, vol. 32(1), pages 35-68.
  • Handle: RePEc:uwp:jhriss:v:32:y:1997:i:1:p:35-68
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    Citations

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    Cited by:

    1. Manabu Nose, 2017. "Estimation of drivers of public education expenditure: Baumol’s effect revisited," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 24(3), pages 512-535, June.
    2. Lergetporer, Philipp & Schwerdt, Guido & Werner, Katharina & West, Martin R. & Woessmann, Ludger, 2018. "How information affects support for education spending: Evidence from survey experiments in Germany and the United States," Journal of Public Economics, Elsevier, vol. 167(C), pages 138-157.
    3. Rashidul Islam Sheikh, 2019. "Analysis of the Determinants of Public Education Expenditures in Bangladesh," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(3), pages 151-178, December.
    4. Delalibera, Bruno Ricardo & Ferreira, Pedro Cavalcanti, 2019. "Early childhood education and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 98(C), pages 82-104.
    5. Chingos, Matthew M. & West, Martin R., 2011. "Promotion and reassignment in public school districts: How do schools respond to differences in teacher effectiveness?," Economics of Education Review, Elsevier, vol. 30(3), pages 419-433, June.
    6. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    7. Gundlach, Erich & Wo[beta]mann, Ludger, 2001. "The fading productivity of schooling in East Asia," Journal of Asian Economics, Elsevier, vol. 12(3), pages 401-417.
    8. David E. Clark & William E. Herrin & Thomas A. Knapp & Nancy E. White, 2003. "Migration and implicit amenity markets: does incomplete compensation matter?," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 289-307, July.
    9. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    10. Julie Berry Cullen & Steven G. Rivkin, 2003. "The Role of Special Education in School Choice," NBER Chapters, in: The Economics of School Choice, pages 67-106, National Bureau of Economic Research, Inc.
    11. Patrick Walsh, 2008. "Are Involved Parents Providing Public Goods or Private Goods?," Public Finance Review, , vol. 36(6), pages 678-705, November.
    12. Jason Giersch, 2014. "Effects of vacation properties on local education budgets," Cogent Economics & Finance, Taylor & Francis Journals, vol. 2(1), pages 1-9, December.
    13. Steven G. Rivkin & Eric A. Hanushek & John F. Kain, 2005. "Teachers, Schools, and Academic Achievement," Econometrica, Econometric Society, vol. 73(2), pages 417-458, March.
    14. Ferreira, Pedro Cavalcanti & Delalibera, Bruno Ricardo, 2016. "Economic growth and complementarity between stages of human capital," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 779, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    15. Hanushek, Eric A. & Peterson, Paul E. & Talpey, Laura M. & Woessmann, Ludger, 2019. "The Unwavering SES Achievement Gap: Trends in U.S. Student Performance," Working Paper Series rwp19-012, Harvard University, John F. Kennedy School of Government.
    16. Shin, Jaeun & Moon, Sangho, 2006. "Fertility, relative wages, and labor market decisions: A case of female teachers," Economics of Education Review, Elsevier, vol. 25(6), pages 591-604, December.
    17. Matthew M. Chingos & Kenneth A. Couch, 2013. "Class Size and Student Outcomes: Research and Policy Implications," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 32(2), pages 411-438, March.
    18. Hanushek, Eric A., 2006. "Alternative school policies and the benefits of general cognitive skills," Economics of Education Review, Elsevier, vol. 25(4), pages 447-462, August.
    19. Erich Gundlach, 2001. "Education and Economic Development: An Empirical Perspective," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 26(1), pages 37-60, June.
    20. Gilpin, Gregory A., 2011. "Reevaluating the effect of non-teaching wages on teacher attrition," Economics of Education Review, Elsevier, vol. 30(4), pages 598-616, August.
    21. Gregory Gilpin, 2009. "Reevaluating the Effect of Non-Teaching Wages on Teacher Attrition," CAEPR Working Papers 2009-022, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    22. You, Hye Mi, 2014. "The contribution of rising school quality to U.S. economic growth," Journal of Monetary Economics, Elsevier, vol. 63(C), pages 95-106.
    23. Harris, Amy Rehder & Evans, William N. & Schwab, Robert M., 2001. "Education spending in an aging America," Journal of Public Economics, Elsevier, vol. 81(3), pages 449-472, September.

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