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Inequality

Michael F. Lovenheim, Jonathan Smith.

Early research on the returns to higher education treated the postsecondary system as a monolith.  In reality, postsecondary education in the United States and around the world is highly differentiated, with a variety of options that differ by credential (associates degree, bachelor’s degree, diploma, certificate, graduate degree), the control of the institution (public, private not-for-profit, private for-profit), the quality/resources of the institution, field of study, and exposure to remedial education. In this Chapter, we review the literature on the returns to these different types of higher education investments, which has received increasing attention in recent decades. We first provide an overview of the structure of higher education in the U.S. and around the world, followed by a model that helps clarify and articulate the assumptions employed by different estimators used in the literature. We then discuss the research on the return to institution type, focusing on the return to two-year, four-year, and for-profit institutions as well as the return to college quality within and across these institution types. We also present the research on the return to different educational programs, including vocational credentials, remedial education, field of study, and graduate school. The wide variation in the returns to different postsecondary investments that we document leads to the question of how students from different backgrounds sort into these different institutions and programs. We discuss the emerging research showing that lower-SES students, especially in the U.S., are more likely to sort into colleges and programs with lower returns as well as results from recent U.S.-based interventions and policies designed to support success among students from disadvantaged backgrounds. The Chapter concludes with some broad directions for future research.

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George Bulman, Robert Fairlie.

Although enrollment at California’s four-year public universities mostly remained unchanged by the pandemic, the effects were substantial for students at California Community Colleges, the largest higher education system in the country. This paper provides a detailed analysis of how the pandemic impacted the enrollment patterns, fields of study, and academic outcomes of these students through the first four semesters after it started. Consistent with national trends, enrollment dropped precipitously during the pandemic – the total number of enrolled students fell by 11 percent from fall 2019 to fall 2020 and by another 7 percent from fall 2020 to fall 2021. The California Community College system lost nearly 300,000 students over this period. Our analysis reveals that enrollment reductions were largest among African-American and Latinx students, and were larger among continuing students than first-time students. We find no evidence that having a large online presence prior to the pandemic protected colleges from these negative effects. Enrollment changes were substantial across a wide range of fields and were large for both vocational courses and academic courses that can be transferred to four-year institutions. In terms of course performance, changes in completion rates, withdrawal rates, and grades primarily occurred in the spring of 2020. These findings of the effects of the pandemic at community colleges have implications for policy, impending budgetary pressures, and future research.

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Kaitlin P. Anderson.

Black and Latinx students are under-represented in Advanced Placement (AP) and Dual Enrollment (DE), and implicit bias of educators has been discussed as one potential contributing factor. In this study, I test whether implicit and explicit racial bias are related to AP and DE participation and racial/ethnic gaps in participation, controlling for various observable contextual factors. I find a small relationship between implicit racial bias and disparate AP participation for Black students relative to White students, and suggestive evidence of a relationship between explicit racial bias and disparate DE participation for Black students relative to White students. Further, more explicitly-biased communities tend to have lower AP participation rates overall. Implications for school leaders regarding implicit bias training and other ways to address systemic inequities in access are discussed.

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Kenneth A. Shores, Matthew P. Steinberg.

We synthesize and critique federal fiscal policy during the Great Recession and Covid-19 pandemic. First, the amount of aid during both crises was inadequate to meet policy goals. Second, the mechanisms used to distribute funds was disconnected from policy goals and provided different levels of aid to districts with equivalent levels of economic disadvantage. Third, data tools are missing making it difficult to understand whether funds were used to meet policy goals. Details for these results are provided along with policy recommendations.

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Lucas Husted, Isaac M. Opper, R. Jisung Park.

We show that natural disasters affect a region’s aggregate human capital through at least four channels. In addition to causing out-migration, natural disasters reduce student achievement, lower high school graduation rates, and decrease post-secondary attendance. We estimate that disasters that cause at least $500 in per capita property damage reduce the net present value (NPV) of an affected county’s human capital by an average of $505 per person. These negative effects on human capital are not restricted to large disasters: less severe events – disasters with property damages of $100-$500 per capita – also cause significant and persistent reductions in student achievement and post-secondary attendance.

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William A. Fischel.

This article reviews the development of my thesis that the California Supreme Court's Serrano decisions, which began in 1971 and sought to disconnect district school spending with local property taxes, led to the fiscal conditions that caused California voters to embrace Proposition 13 in 1978, which radically undermined the local property tax system. I submit that my thesis is most likely true because of Proposition 13’s durability and the absence of alternative explanations that account for its longstanding power over California politics. The article then circles back to John Serrano himself. I want to respectfully suggest that John’s views about the role of public education and my own have more in common than might be suspected. At the very least I want to correct the impression that John supported Proposition 13, which was suggested by the title of my last full article about this topic.

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Susha Roy.

In this paper, I study the effect of winning the public school choice lottery on public school enrollment. In particular, I look at how different outside options affect how sensitive students are to receiving their first choice in the public school lottery, focusing on three measures of outside options: ability to afford private schools, geographic convenience of private schools, and zoned-school quality. Using rich administrative data from applications submitted through a centralized enrollment system in Tulsa Public Schools (TPS), I find that overall, students who do not get assigned to their top choice school in a public school choice program are 15 percentage points more likely to leave the public school system entirely than those who do get an offer at their top choice. This effect is driven by higher-income students: these students, who are more likely to be able to afford private schools, are 33 percentage points more likely to leave the public school system if they do not get an offer at the public school they rank first than those who do get a spot. Geographic convenience of private schools and zoned-school quality do not differentially affect students’ enrollment decisions once they receive a school assignment. These effects are important to understand as districts undergo efforts to increase participation in school choice programs, while seeking to maintain district enrollment. They also provide useful insights about how attrition may affect estimates of the impact of choice schools on student outcomes.

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Stephen B. Billings, Hugh Macartney, Geunyong Park, John D. Singleton.

In this paper, we show that the election of a new school board member causes home values in their neighborhood to rise. This increase is identified using narrowly-decided contests and is driven by non-Democratic members, whose neighborhoods appreciate about 4% on average relative to those of losing candidates. We find that student test scores in the neighborhood public schools of non-Democratic winners also relatively increase, but this effect is driven by changing student composition, including via the manipulation of attendance zones, rather than improvements in school quality (as measured by test score value-added). Notably, we detect no differential changes when comparing neighborhood or scholastic outcomes between winning and losing Democratic school board candidates. These results suggest that partisan affiliation is correlated with private motivations for seeking public office.

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Francisca M. Antman, Kalena E. Cortes.

We present the first quantitative analysis of the impact of ending de jure segregation of Mexican-American school children in the United States by examining the effects of the 1947 Mendez v. Westminster court decision on long-run educational attainment for Hispanics and non-Hispanic whites in California. Our identification strategy relies on comparing individuals across California counties that vary in their likelihood of segregating and across birth cohorts that vary in their exposure to the Mendez court ruling based on school start age. Results point to a significant increase in educational attainment for Hispanics who were fully exposed to school desegregation.

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Jane Arnold Lincove, Catherine Mata, Kalena E. Cortes.

High school exit exams are meant to standardize the quality of public high schools and to ensure that students graduate with a set of basic skills and knowledge. Evidence suggests that a common perverse effect of exit exams is an increase in dropout for students who have difficulty passing tests, with a larger effect on minority students. To mitigate this, some states offer alternative, non-tested pathways to graduation for students who have failed their exit exams. This study investigates the post-secondary effects of an alternative high school graduation program. Among students who initially fail an exit exam, those who eventually graduate through an alternative project-based pathway have lower college enrollment, but similar employment outcomes to students who graduate by retaking and passing their exit exams. Compared to similar students who fail to complete high school, those students who take the alternative pathway have better post-secondary outcomes in both education and employment.

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