The Impact of Fiscal Incentives on Student Disability Rates
Student disability rates have grown by over 50 percent over the past two decades and are continuing to rise. Policy discussion has linked this trend to state funding formulas that reward local school districts for identifying additional students with special needs. However, there is little empirical evidence on the role of these fiscal parameters in explaining student disability rates, or, more generally, on the responsiveness of local program take-up rates to intergovernmental fiscal incentives. In order to estimate the elasticity of student disability rates with respect to the generosity of state reimbursements, I use variation in the state aid generated by serving a disabled student across local school districts in Texas from 1991-92 through 1996-97. The take-up response is identified from sharp changes in the relative treatment of districts of differing wealth that arise from court-mandated changes in the structure of school finance equalization. My central estimates imply that fiscal incentives can explain over 35 percent of the recent growth in student disability rates in Texas. The magnitude of the institutional response varies by district size and enrollment concentration, student race/ethnicity composition, and the level of fiscal constraint.
|Date of creation:||Jun 1999|
|Date of revision:|
|Publication status:||published as Cullen, Julie Berry. "The Impact Of Fiscal Incentives On Student Disability Rates," Journal of Public Economics, 2003, v87(7-8,Aug), 1557-1589.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan B. Krueger, 1990.
"Incentive Effects of Workers' Compensation Insurance,"
NBER Working Papers
3089, National Bureau of Economic Research, Inc.
- Krueger, Alan B., 1990. "Incentive effects of workers' compensation insurance," Journal of Public Economics, Elsevier, vol. 41(1), pages 73-99, February.
- Robin L. Lumsdaine & David A. Wise, 1994.
"Aging and Labor Force Participation: A Review of Trends and Explanations,"
in: Aging in the United States and Japan: Economic Trends, pages 7-42
National Bureau of Economic Research, Inc.
- David A. Wise & Robin L. Lumsdaine, 1990. "Aging and Labor Force Participation: A Review of Trends and Explanations," NBER Working Papers 3420, National Bureau of Economic Research, Inc.
- Eric A. Hanushek & John F. Kain & Steven G. Rivkin, 1998. "Does Special Education Raise Academic Achievement for Students with Disabilities?," NBER Working Papers 6690, National Bureau of Economic Research, Inc.
- Andrew Reschovsky & Amyellen Schwartz, 1992. "Evaluating the Success of Need-Based State Aid in the Presence of Property Tax Limitations," Public Finance Review, , vol. 20(4), pages 483-498, October.
- Julie Berry Cullen, 1999.
"The Impact of Fiscal Incentives on Student Disability Rates,"
NBER Working Papers
7173, National Bureau of Economic Research, Inc.
- Cullen, Julie Berry, 2003. "The impact of fiscal incentives on student disability rates," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1557-1589, August.
- Chaikind, Stephen & Corman, Hope, 1991. "The impact of low birthweight on special education costs," Journal of Health Economics, Elsevier, vol. 10(3), pages 291-311, October.
- Courty, Pascal & Marschke, Gerald, 1997. "Measuring Government Performance: Lessons from a Federal Job-Training Program," American Economic Review, American Economic Association, vol. 87(2), pages 383-88, May.
- Ladd, Helen F. & Yinger, John, 1994. "The Case for Equalizing Aid," National Tax Journal, National Tax Association, vol. 47(1), pages 211-24, March.
- Kenny, Lawrence W. & Denslow, David Jr., 1980. "Compensating differentials in teachers' salaries," Journal of Urban Economics, Elsevier, vol. 7(2), pages 198-207, March.
- James J. Heckman & Jeffrey A. Smith & Christopher Taber, 1996. "What Do Bureaucrats Do? The Effects of Performance Standards and Bureaucratic Preferences on Acceptance into the JTPA Program," NBER Working Papers 5535, National Bureau of Economic Research, Inc.
- Anderson, Patricia M & Meyer, Bruce D, 1997. "Unemployment Insurance Takeup Rates and the After-Tax Value of Benefits," The Quarterly Journal of Economics, MIT Press, vol. 112(3), pages 913-37, August.
- Bassi, Laurie J, 1988. "Poverty among Women and Children: What Accounts for the Change?," American Economic Review, American Economic Association, vol. 78(2), pages 91-95, May.
- Parsons, Donald O, 1980. "The Decline in Male Labor Force Participation," Journal of Political Economy, University of Chicago Press, vol. 88(1), pages 117-34, February.
- Heckman, James J & Heinrich, Carolyn & Smith, Jeffrey, 1997. "Assessing the Performance of Performance Standards in Public Bureaucracies," American Economic Review, American Economic Association, vol. 87(2), pages 389-95, May.
- Moffitt, Robert, 1992. "Incentive Effects of the U.S. Welfare System: A Review," Journal of Economic Literature, American Economic Association, vol. 30(1), pages 1-61, March.
- Bound, John & Waidmann, Timothy, 1992. "Disability Transfers, Self-Reported Health, and the Labor Force Attachment of Older Men: Evidence from the Historical Record," The Quarterly Journal of Economics, MIT Press, vol. 107(4), pages 1393-419, November.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:7173. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.