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Pennies from heaven - Using exogenous tax variation to identify effects of school resources on pupil achievement
By Hægeland, Torbjørn, Oddbjørn Raaum and Kjell Gunnar Salvanes
Memorandum 18/2007
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Abstract |
Despite important policy implications associated with the allocation of education resources, evidence
on the effectiveness of school inputs remains inconclusive. In part, this is due to endogenous
allocation; families sort themselves non-randomly into school districts and school districts allocate
money based in order to compensate (or reinforce) differences in child abilities, which leaves
estimates of school input effects likely to be biased. Using variation in education expenditures induced
by the location of natural resources in Norway, we examine the effect of school resources on pupil
outcomes. We find that higher school expenditures, triggered by higher revenues from local taxes on
hydropower plants, have a significantly positive effect on pupil performance at age 16. The IV
estimates contrast with the standard cross-sectional estimates that reveal no effects of extra resources. |
| JEL Classification:
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I21, I28, J24 |
| Keywords:
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Pupil achievement, school resources |
| Project:
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1171 Student achievement: Social background and schools
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| Financing:
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Norges forskningsråd |
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[Full Text PDF]
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