Public Education Funding Cuts and Enrollment Shift to Private Schools: Evidence from the Great Recession

43 Pages Posted: 24 Jan 2021 Last revised: 3 Apr 2024

See all articles by Jiwon Park

Jiwon Park

Korea Institute for International Economic Policy

Date Written: November 28, 2020

Abstract

This paper examines whether funding for public schools affects private school enrollment.
To examine causality, I utilize the fact that states with greater historical reliance on state appropriations and states without income tax experienced larger cuts for public K-12 education funding in the US after the Great Recession. These fiscal characteristics provide a plausiblely exogenous variation in public school funding. I find that a $1,000 reduction in per-pupil funding increases enrollment in private schools by 0.48 to 0.57 percentage points. I show further that the effect is strongest among high socioeconomic status students, suggesting an increase in education inequality.

Keywords: Private school, K-12 appropriations, Great Recession

JEL Classification: H61, H75, I21, I22, I28

Suggested Citation

Park, Jiwon, Public Education Funding Cuts and Enrollment Shift to Private Schools: Evidence from the Great Recession (November 28, 2020). Available at SSRN: https://ssrn.com/abstract=3739064 or http://dx.doi.org/10.2139/ssrn.3739064

Jiwon Park (Contact Author)

Korea Institute for International Economic Policy ( email )

[30147] Building C, Sejong National Research Compl
Seoul, 370
Korea, Republic of (South Korea)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
128
Abstract Views
610
Rank
409,251
PlumX Metrics