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Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South

Author

Listed:
  • Elizabeth U. Cascio
  • Nora E. Gordon
  • Sarah J. Reber

Abstract

Title I of the 1965 Elementary and Secondary Education Act substantially increased federal aid for education, with the goal of expanding educational opportunity. Combining the timing of the program's introduction with variation in its intensity, we find that Title I increased school spending by 46 cents on the dollar in the average school district in the South and increased spending nearly dollar-for-dollar in Southern districts with little scope for local offset. Based on this differential fiscal response, we find that increases in school budgets from Title I decreased high school dropout rates for whites, but not blacks.

Suggested Citation

  • Elizabeth U. Cascio & Nora E. Gordon & Sarah J. Reber, 2011. "Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South," NBER Working Papers 17155, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17155
    Note: CH DAE ED PE
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    Cited by:

    1. Elizabeth U. Cascio, 2014. "Valuing the Vote: The Redistribution of Voting Rights and State Funds following the Voting Rights Act of 1965," The Quarterly Journal of Economics, Oxford University Press, vol. 129(1), pages 379-433.
    2. Coen-Pirani, Daniele, 2015. "Human capital accumulation in a federation," European Economic Review, Elsevier, vol. 76(C), pages 104-124.
    3. Carruthers, Celeste K. & Wanamaker, Marianne H., 2013. "Closing the gap? The effect of private philanthropy on the provision of African-American schooling in the U.S. south," Journal of Public Economics, Elsevier, vol. 101(C), pages 53-67.

    More about this item

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • I2 - Health, Education, and Welfare - - Education
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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