Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South

61 Pages Posted: 20 Jun 2011

See all articles by Elizabeth Cascio

Elizabeth Cascio

Department of Economics, Dartmouth College; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Nora Gordon

Georgetown University

Sarah Reber

University of California, Los Angeles (UCLA) - Department of Policy Studies

Date Written: June 2011

Abstract

Title I of the 1965 Elementary and Secondary Education Act substantially increased federal aid for education, with the goal of expanding educational opportunity. Combining the timing of the program's introduction with variation in its intensity, we find that Title I increased school spending by 46 cents on the dollar in the average school district in the South and increased spending nearly dollar-for-dollar in Southern districts with little scope for local offset. Based on this differential fiscal response, we find that increases in school budgets from Title I decreased high school dropout rates for whites, but not blacks.

Suggested Citation

Cascio, Elizabeth and Gordon, Nora and Reber, Sarah Johanna, Federal Aid and Equality of Educational Opportunity: Evidence from the Introduction of Title I in the South (June 2011). NBER Working Paper No. w17155. Available at SSRN: https://ssrn.com/abstract=1866649

Elizabeth Cascio (Contact Author)

Department of Economics, Dartmouth College ( email )

Hanover, NH 03755
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Nora Gordon

Georgetown University ( email )

Sarah Johanna Reber

University of California, Los Angeles (UCLA) - Department of Policy Studies ( email )

Los Angeles, CA
United States

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