Low Fees, Large Barriers to Education: Evidence from Rate Bill Abolition in the United States
59 Pages Posted: 11 Mar 2021 Last revised: 23 May 2023
Date Written: May 22, 2023
Abstract
Until the late 19th century, families in some U.S. municipalities paid small user fees, known as rate bills, for their children to attend public schools. Urban school districts gradually repealed these fees and funded public education through local taxes, but rural areas continued to charge tuition until state-level policies abolished the practice for public schools. Using United States Census data and a staggered adoption difference-in-differences approach, I show that rate bill abolition increased rural primary school attendance by 7.2 percentage points. These results suggest that small costs can be an obstacle to school attendance and inhibit the diffusion of education.
Keywords: free public education, tuition, rate bill abolition, primary school attendance
JEL Classification: N31, I22, H75
Suggested Citation: Suggested Citation