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Use of education finance data is ubiquitous. Yet, because the academic calendar circumscribes two calendar years, researchers have linked the Consumer Price Index to three different dates: the Fall, Spring and academic fiscal years. We demonstrate that linking the CPI to these different academic year results in identifying different trends in U.S. educational spending during the Great Recession. Descriptive inferences should not be sensitive to researcher discretion about merge years. We provide an easy-to-use software package to facilitate implementation of NCES guidelines in the hope that future analyses of education finance data will explicitly and consistently apply inflation adjustments.
Do nudge interventions that have generated positive impacts at a local level maintain efficacy when scaled state or nationwide? What specific mechanisms explain the positive impacts of promising smaller-scale nudges? We investigate, through two randomized controlled trials, the impact of a national and state-level campaign to encourage students to apply for financial aid for college. The campaigns collectively reached over 800,000 students, with multiple treatment arms to investigate different potential mechanisms. We find no impacts on financial aid receipt or college enrollment overall or for any student subgroups. We find no evidence that different approaches to message framing, delivery, or timing, or access to one-on-one advising affected campaign efficacy. We discuss why nudge strategies that work locally may be hard to scale effectively.
Evidence-based policy is the practice of basing policy decisions on rigorous research evidence, such as randomized experiments. But it is unclear how often evidence-based decisions produce more effective policy. We evaluate an evidence-based policy implemented in 1989-93, after the state of Tennessee completed the famous Project STAR randomized experiment, which showed that reducing average class sizes from 23 to 15 could raise test scores by nearly 0.2 standard deviations (SD). After Project STAR, the state launched Project Challenge, which tried to achieve similar score gains by earmarking $5 million to reduce class sizes in the state’s 17 poorest districts.
We evaluate the effects of Project Challenge by applying regression discontinuity and difference in differences analysis to data from district report cards. Our analysis offers no evidence that Project Challenge districts raised test scores, and even raises questions about whether districts reduced class sizes. After Project Challenge, Tennessee’s Basic Education Plan did reduce class sizes, but only by a token amount, from 26 to 25. In this example, it seems that a successful randomized experiment did not lead to successful policy.
Student loan borrowing for higher education has emerged as a top policy concern. Policy makers at the institutional, state, and federal levels have pursued a variety of strategies to inform students about loan origination processes and how much a student has cumulatively borrowed, and to provide students with greater access to loan counseling. We conducted an experiment to evaluate the impact of an outreach campaign that prompted loan applicants at a large community college to make informed and active borrowing decisions and that offered them access to remote, one-onone assistance from a loan counselor. The intervention led students to reduce their unsubsidized loan borrowing by 7 percent, resulted in worse academic performance, and increased the likelihood of loan default during the three years after the intervention occurred. Our results suggest policy makers and higher education leaders should carefully examine the potential unintended consequences of efforts to reduce student borrowing, particularly in light of growing evidence regarding the counter-intuitive positive relationship between reduced borrowing levels and worse student academic and financial outcomes.
Estimates of school voucher impacts on educational attainment have yet to explore heterogeneities in socioeconomic status among disadvantaged minority students. We theorize reasons for these heterogeneities and then estimate experimentally the differential impacts of voucher offers on college enrollment and graduation rates for minority and non-immigrant students from moderately and severely disadvantaged backgrounds. The findings are obtained from a privately sponsored, lottery-based voucher intervention in New York City that began in 1997. College enrollment and degree attainment as of the fall of 2017 were obtained from the National Student Clearinghouse. We find no significant effects of offers on minority students from severely disadvantaged backgrounds but significant effects of six to eight percentage points on those from moderately disadvantaged households. Similar results are obtained for students born of non-immigrant mothers. Some policy implications are discussed.
Despite large and growing student loan balances, there is relatively little evidence on the effects of access to student loans on borrowing and educational outcomes. We examine the effect of access to credit by using policy variation in the maximum federal student loan amounts available to U.S. college students. In particular, first-, second-, and third-year students have access to different amounts of federal student loans. Using a regression discontinuity and administrative data from a state higher education system, we find that access to higher loan limits increases borrowing for at least 26 percent of borrowers. Despite this increase in borrowing, we find no evidence that eligibility for additional loans affects student GPA, persistence, or graduation.
We leverage an obscure set of rules in Texas’s school funding formula granting some districts additional revenue as a function of size and sparsity. We use variation from kinks and discontinuities in this formula to ask how districts spend additional discretionary funds, and whether these improve student outcomes. A $1,000 annual increase in foundation funding, or 10% increase in expenditures, yields a 0.1 s.d. increase in reading scores and a near 0.08 increase in math. In addition, dropout rates decline, graduation rates marginally increase, as does college enrollment and to a smaller degree graduation. These gains accrue in later grades and largely among poorer districts. An analysis of budget allocations reveals that additional funding only marginally affects budget shares.
Contradictory evidence of the relationship between education funding and student achievement could reflect heterogeneous effects by revenue source or student characteristics. This study examines potential heterogeneous effects of a particular type of local revenue – bond funds for capital investments – on achievement by socioeconomic status. Comparing California school districts within a narrow window on either side of the cutoff of voter support required to pass a general obligation bond measure, this study uses dynamic regression discontinuity models to estimate effects of passing a bond on academic achievement among low- and high-SES students. Results consistently suggest that passing a bond measure increases achievement among low- but not high-SES students. However, these benefits for low-SES students are delayed and emerge 6 years after an election.
Teachers’ impact on student long-run success is only partially explained by their contributions to students’ short-run academic performance. For this study, we explore a second dimension of teacher effectiveness by creating measures of teachers’ contributions to student class-attendance. We find systematic variation in teacher effectiveness at reducing unexcused class absences at the middle and high school level. These differences across teachers are as stable as those for student achievement, but teacher effectiveness on attendance only weakly correlates with their effects on achievement. We link these measures of teacher effectiveness to students’ long-run outcomes. A high value-added to attendance teacher has a stronger impact on students’ likelihood of finishing high school than does a high value-added to achievement teacher. Moreover, high value-added to attendance teachers can motivate students to pursue higher academic goals as measured by Advanced Placement course taking. These positive effects are particularly salient for low-achieving and low-attendance students.
School finance reforms caused some of the most dramatic increases in intergovernmental aid from states to local governments in U.S. history. We examine whether teachers’ unions affected the fraction of reform-induced state aid that passed through to local spending and the allocation of these funds. Districts with strong teachers’ unions increased spending nearly dollar-for-dollar with state aid, and spent the funds primarily on teacher compensation. Districts with weak unions used aid primarily for property tax relief, and spent remaining funds on hiring new teachers. The greater expenditure increases in strong union districts led to larger increases in student achievement.