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Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education

Author

Listed:
  • Goldring, Thomas

    (Georgia State University)

  • Jacob, Brian A.

    (University of Michigan)

  • Kreisman, Daniel

    (Georgia State University)

  • Ricks, Michael D.

    (University of Nebraska-Lincoln)

Abstract

In 2015, Michigan increased it Career and Technical Education (CTE) funding and changed its funding formula to reimburse programsbased student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.

Suggested Citation

  • Goldring, Thomas & Jacob, Brian A. & Kreisman, Daniel & Ricks, Michael D., 2024. "Loopholes and the Incidence of Public Services: Evidence from Funding Career & Technical Education," IZA Discussion Papers 16943, IZA Network @ LISER.
    • Handle: RePEc:iza:izadps:dp16943
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    Keywords

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    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality

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