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This paper takes a novel time series perspective on K-12 school spending. About half of school spending is financed by state government aid to local districts. Because state aid is generally income conditioned, with low-income districts receiving more aid, state aid acts as a mechanism for risk sharing between school districts. We show that temporal inequality, due to state and local business cycles, is prevalent across the income distribution. We estimate a model of local revenue and state aid, and its allocation across districts, and use the parameters to simulate impulse response functions. We find that state aid provides risk sharing for local shocks, although slow speed of adjustment results in temporal inequality. There is little risk sharing for statewide income shocks, and the risk from such shocks to school spending is more severe in low income districts because of their greater reliance on state aid.
Local governments spend over 12 billion dollars annually funding the operation of 15,000 public libraries in the United States. This funding supports widespread library use: more than 50% of Americans visit public libraries each year. But despite extensive public investment in libraries, surprisingly little research quantifies the effects of public libraries on communities and children. We use data on the near-universe of U.S. public libraries to study the effects of capital spending shocks on library resources, patron usage, student achievement, and local housing prices. We use a dynamic difference-in-difference approach to show that library capital investment increases children’s attendance at library events by 18%, children’s checkouts of items by 21%, and total library visits by 21%. Increases in library use translate into improved children’s test scores in nearby school districts: a $1,000 or greater per-student capital investment in local public libraries increases reading test scores by 0.02 standard deviations and has no effects on math test scores. Housing prices do not change after a sharp increase in public library capital investment, suggesting that residents internalize the increased cost and improved quality of their public libraries.
Well-documented racial disparities in rates of exclusionary discipline may arise from differences in hard-to-observe student behavior or bias, in which treatment for the same behavior varies by student race or ethnicity. We provide evidence for the presence of bias using statewide administrative data that contain rich details on individual disciplinary infractions. Two complementary empirical strategies identify bias in suspension outcomes. The first uses within-incident variation in disciplinary outcomes across White and under-represented minority students. The second employs individual fixed effects to examine how consequences vary for students across incidents based on the race of the other student involved in the incident. Both approaches find that Black students are suspended for longer than Hispanic or White students, while there is no evidence of Hispanic-White disparities. The similarity of findings across approaches and the ability of individual fixed effect models to account for unobserved characteristics common across disciplinary incidents provide support that remaining racial disparities are likely not driven by behavior.
Occupational credentials provide an additional—and, at times, alternative—path other than traditional academic degrees for individuals to increase productivity and demonstrate their abilities and qualifications to employers. These credentials take the form of licenses and certifications. Although a critical part of the workforce landscape, the literature on the returns to credentials is inadequate, with prior research having limited causal identification, typically relying on OLS regressions which do not sufficiently control for selection. Using questions that identify credential receipt from the 2015 and 2016 Current Population Surveys, we construct an instrumental variable of local peer influence using the within-labor market credential rate of individuals sharing the same sociodemographic characteristics, while controlling for the same group’s average wages and a suite of demographic and geographic controls. We use this instrument in a marginal treatment effects estimator, which allows for estimation of the average treatment effect and determines the direction of selection, and we estimate the effects of credentials on labor market outcomes. We find large, meaningful returns in the form of increased employment, an effect which is concentrated primarily among women. The effect of having a credential on log wages is higher for those in the sub-baccalaureate labor market, suggesting the potential role of occupational credentials as an alternative path to marketable human capital and a signal of skills in the absence of a bachelor’s degree.
We explore the role of defaults and choice architecture on student loan decision-making, experimentally testing the impact pre-populating either decline or accept decisions compared to an active choice, no pre-population, decision. We demonstrate that the default choice presented does influence student loan borrowing decisions. Specifically, compared to active choice, students presented within a pre-populated decline decision were almost five percent less likely to accept all packaged loans and borrowed between 4.6 and 4.8 percent less in federal educational loans. The reductions in borrowing appears to be concentrated within unsubsidized loans with those assigned to the opt-in condition borrowing 8.3 percent less in unsubsidized loans. These changes in borrowing did not induce substitution towards private or Parent PLUS loans nor did they negatively impact enrollment, academic performance, or on-campus work outcomes in the same academic year.
Using individual data from PIAAC and aggregate data on GDP and unemployment for the US, Europe, and Spain, we test how macroeconomic conditions experienced at age eighteen affect the following decisions in post-secondary and tertiary education: i) enrollment ii) dropping-out, iii) type of degree completed, iv) area of specialization, and v) time-to-degree. We also analyze how the effects differ by gender and parental background. Our findings are different for each of these geographies, which shows that the impacts of macroeconomic conditions on higher education decisions depend on context, such as labor markets and education systems. By analyzing various components of higher education together, we are able to obtain a clearer picture of how potential mechanisms linked to lower opportunity costs of education and reduced ability to pay during economic downturns interact to determine student selection.
The segregation of students by socioeconomic status has been on the rise in American public education between schools during the past several decades. Recent work has demonstrated that segregation is also increasing within schools at the classroom level. In this paper, we contribute to our understanding of the determinants of this increase in socioeconomic segregation within schools. We assess whether growth in the presence and number of nearby charter schools have affected the segregation of socioeconomically disadvantaged students by classroom in traditional public schools (TPS). Using data from North Carolina, we estimate a series of models exploit variation in the number and location of charter schools over time between 2007 and 2014 to estimate the impact of charter school penetration and proximity on levels of within school segregation in TPS classrooms serving grades 3-8. We find that socioeconomic segregation in math and English language arts increase in grades 3-6 when additional charter schools open within large urban districts. We find the largest impacts on schools that are closest to the new charter schools. We estimate that the impact of charter schools can account for almost half of the overall growth in socioeconomic segregation we see over the course of the panel within grades 3-6 in large urban districts.
Mixed evidence on the relationship between school closure and COVID-19 prevalence could reflect focus on large-scale levels of geography, limited ability to address endogeneity, and demographic variation. Using county-level CDC COVID-19 data through June 15, 2020, two matching strategies address potential heterogeneity: nearest geographic neighbor and propensity scores. Within nearest neighboring pairs in different states with different school closure timing, each additional day from a county’s first case until state-ordered school closure is related to 1.5%-2.4% higher cumulative COVID-19 deaths per capita (1,227-1,972 deaths for a county with median population and deaths/capita). Results are consistent using propensity score matching, COVID-19 data from two alternative sources, and additional sensitivity analyses. School closure is more strongly related to COVID-19 deaths in counties with a high concentration of Black or poor residents, suggesting schools play an unequal role in transmission and earlier school closure is related to fewer lives lost in disadvantaged counties.
The decades-long resistance to federally imposed school desegregation entered a new phase at the turn of the new century, when federal courts stopped pushing racial balance as a remedy for past segregation, adopting in its place a color-blind approach in judging local school districts’ assignment plans. Using data that span 1998 to 2016 from North Carolina, one of the first states to come under this color-blind dictum, we examine the ways in which households and policymakers took actions that had the effect of reducing the amount of interracial contact in K-12 schools within counties. We divide these reductions in interracial contact into portions due to the private school and charter school sectors, the existence of multiple school districts, and racial disparities between schools within districts and sectors. For most counties, the last of these proves to be the biggest, though in some counties private schools, charter schools, or multiple districts played a deciding role. In addition, we decompose segregation in the state’s 13 metropolitan areas, finding that more than half can be attributed to racial disparities inside school districts. We also measure segregation by economic status, finding that it, like racial segregation, increased in the largest urban counties, but elsewhere changed little over the period.
Employers may favor applicants who played college sports if athletics participation contributes to leadership, conscientiousness, discipline, and other traits that are desirable for labor-market productivity. We conduct a resume audit to estimate the causal effect of listing collegiate athletics on employer callbacks and test for subgroup effects by ethnicity, gender, and sport type. We applied to more than 450 jobs on a large, well-known job board. For each job listing we submitted two fictitious resumes, one of which was randomly assigned to include collegiate varsity athletics. Overall, listing a college sport does not produce a statistically significant change in the likelihood of receiving a callback or interview request. However, among non-white applicants, athletes are 3.2 percentage points less likely to receive an interview request (p = .04) relative to non-athletes. We find no statistically significant differences among males or females.