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A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case

Author

Listed:
  • BenDavid-Hadar, Iris

    (Bar-Ilan University)

  • Ziderman, Adrian

    (Bar-Ilan University)

Abstract

This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper (Improvement in the Educational Achievement Distribution, or IEAD). The development of the budget allocation formula is demonstrated utilizing Israeli data. Large scale, nationwide data sets relating students’ academic achievement to student background variables, teacher profiles and school characteristics, were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.

Suggested Citation

  • BenDavid-Hadar, Iris & Ziderman, Adrian, 2010. "A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case," IZA Discussion Papers 4822, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4822
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    References listed on IDEAS

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    1. Ben-David, D., 2000. "Teach your Children Well: Planting the Seeds of Education and Harvesting the Benefits of Trade," Papers 2000-5, Tel Aviv.
    2. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(2), pages 199-230, April.
    3. Ritzen, Jozef M. M. & van Dommelen, Jan & De Vijlder, Frans J., 1997. "School finance and school choice in the Netherlands," Economics of Education Review, Elsevier, vol. 16(3), pages 329-335, June.
    4. Philip Oreopoulos & Daniel Lang & Joshua Angrist, 2009. "Incentives and Services for College Achievement: Evidence from a Randomized Trial," American Economic Journal: Applied Economics, American Economic Association, vol. 1(1), pages 136-163, January.
    5. Adnett, Nick & Bougheas, Spiros & Davies, Peter, 2002. "Market-based reforms of public schooling: some unpleasant dynamics," Economics of Education Review, Elsevier, vol. 21(4), pages 323-330, August.
    6. Rosalind Levacic & Anna Vignoles, 2002. "Researching the Links between School Resources and Student Outcomes in the UK: A Review of Issues and Evidence," Education Economics, Taylor & Francis Journals, vol. 10(3), pages 313-331.
    7. Kathy J. Hayes & Lori L. Taylor, 1996. "Neighborhood school characteristics: what signals quality to homebuyers?," Economic and Financial Policy Review, Federal Reserve Bank of Dallas, issue Q IV, pages 2-9.
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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 of Labor Economics (IZA).
    2. Hod Orkibi & Efrat Dafner, 2016. "Exposure to Risk Factors and the Subjective Wellbeing of Adolescents: the Mediating Role of Time Perspective," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 9(3), pages 663-682, September.

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    More about this item

    Keywords

    school finance; formular funding; needs-based funding; schools resource allocation; Israel;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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