Rationalizing the E-Rate: The Effects of Subsidizing it in Education

25 Pages Posted: 22 Nov 2005

See all articles by Michael R. Ward

Michael R. Ward

University of Texas at Arlington - College of Business Administration - Department of Economics; ZEW, Mannheim

Date Written: October 2005

Abstract

Starting in 1998, the E-Rate program has provided $2.25 billion to subsidize Internet access in schools and libraries serving low income populations in the US. I analyze the effect of E-Rate subsidies on educational outcomes for Texas high schools over the 1994-2003 time period. Consistent with previous economic analyses, I find few, if any, improvements in student achievements. I do find evidence that experienced teachers are reallocated within districts toward schools receiving E-Rate grants. I also find evidence that the pool of college entrance exam takers is affected by E-Rate grants such that relying on average scores could lead to incorrect conclusions.

Keywords: Education, Internet, Subsidy

JEL Classification: J22, L86, I22, H20

Suggested Citation

Ward, Michael Robert, Rationalizing the E-Rate: The Effects of Subsidizing it in Education (October 2005). NET Institute Working Paper No. 05-25, Available at SSRN: https://ssrn.com/abstract=851447 or http://dx.doi.org/10.2139/ssrn.851447

Michael Robert Ward (Contact Author)

University of Texas at Arlington - College of Business Administration - Department of Economics ( email )

330 Business Building
Box 19479
Arlington, TX 76019
United States
817-272-3090 (Phone)
817-272-3145 (Fax)

ZEW, Mannheim ( email )

D-68034 Mannheim
Germany

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