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The effect of school resources on test scores in England

  • Cheti Nicoletti
  • Birgitta Rabe

We analyze the effect of school expenditure on children's test scores at age 16 by means of an education production model. By using unique register data of English pupils, we exploit the availability of test scores across time, subjects and siblings to control for various sources of input omission and measurement error bias. We overcome one of the main criticisms against the value-added model by proposing a novel method to control for the endogeneity of the lagged test. We find evidence of a positive but small effect of per pupil expenditure on test scores.

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Paper provided by Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA in its series CHILD Working Papers Series with number 15.

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Length: 42 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:cca:wchild:15
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  1. Dan A. Black & Jeffrey A. Smith, 2006. "Estimating the Returns to College Quality with Multiple Proxies for Quality," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 701-728, July.
  2. Khwaja, Asim Ijaz & Andrabi, Tahir & Das, Jishnu & Zajonc, Tristan, 2009. "Do Value-Added Estimates Add Value? Accounting for Learning Dynamics," Scholarly Articles 4435671, Harvard Kennedy School of Government.
  3. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
  4. Alan Krueger & Orley Ashenfelter, 1992. "Estimates of the Economic Return to Schooling from a New Sample of Twins," NBER Working Papers 4143, National Bureau of Economic Research, Inc.
  5. Flavio Cunha & James J. Heckman, 2008. "Formulating, Identifying and Estimating the Technology of Cognitive and Noncognitive Skill Formation," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
  6. Gibbons, Steve & McNally, Sandra & Viarengo, Martina, 2012. "Does Additional Spending Help Urban Schools? An Evaluation Using Boundary Discontinuities," IZA Discussion Papers 6281, Institute for the Study of Labor (IZA).
  7. Lorraine Dearden & Javier Ferri & Costas Meghir, 1998. "The effect of school quality on educational attainment and wages," IFS Working Papers W98/03, Institute for Fiscal Studies.
  8. John Bound & Alan B. Krueger, 1989. "The Extent of Measurement Error In Longitudinal Earnings Data: Do Two Wrongs Make A Right?," NBER Working Papers 2885, National Bureau of Economic Research, Inc.
  9. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
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