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Demographics, Fiscal Health, and School Quality: Shedding Light on School Closure Decisions

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  • Billger, Sherrilyn M.

    () (Illinois State University)

Abstract

In our current challenging budgetary environment, school closures remain a potentially attractive choice. With a large panel of Illinois schools from 1991 to 2005, I investigate which factors contribute to school closures. Among elementary schools, declining enrolments and rural locations coincide with closures. However, schools with higher per-pupil spending are ceteris paribus less likely to close. Furthermore, better test scores also yield lower probabilities. High expenditures contribute to junior high closure, but the most significant predictors are the proportions of black and low income students. Administrators may claim that low enrolments and high spending motivate school closures, but in Illinois, that is not the whole story.

Suggested Citation

  • Billger, Sherrilyn M., 2010. "Demographics, Fiscal Health, and School Quality: Shedding Light on School Closure Decisions," IZA Discussion Papers 4739, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp4739
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    Cited by:

    1. Hazans, Mihails, 2010. "Teacher Pay, Class Size and Local Governments: Evidence from the Latvian Reform," IZA Discussion Papers 5291, Institute for the Study of Labor (IZA).
    2. repec:eee:soceps:v:61:y:2018:i:c:p:70-89 is not listed on IDEAS

    More about this item

    Keywords

    education finance; education administration; school closures; tax policy;

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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