Working Paper: NBER ID: w25368
Authors: C. Kirabo Jackson
Abstract: Social scientists have long sought to examine the causal impact of school spending on child outcomes. For a long time, the literature on this topic was largely descriptive so that it had been difficult to draw strong causal claims. However, there have been several recent studies in this space that employ larger data-sets and use quasi-experimental methods that allow for much more credible causal claims. Focusing on studies of students in the United States, this paper briefly discusses the older literature and highlights some of its limitations. It then describes a recent quasi-experimental literature on the impact of school spending on child outcomes, highlights some key papers, and presents a summary of the recent findings. Policy implications and areas for future research are discussed.
Keywords: school spending; child outcomes; education finance; quasi-experimental methods
JEL Codes: H0; J0
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| School Finance Reforms (SFRs) (I22) | Increased School Spending (H52) |
| Increased School Spending (H52) | Improved Educational Attainment (I24) |
| Increased School Spending (H52) | Increased Wages (J31) |
| Increased School Spending (H52) | Reduction in Adult Poverty Rates (I32) |
| School Finance Reforms (SFRs) (I22) | Improved Educational Attainment (I24) |
| Increased School Spending (H52) | Test Score Improvements (C52) |
| School Finance Reforms (SFRs) (I22) | Test Score Improvements (C52) |