Rationalizing the E-Rate: The Effects of Subsidizing it in Education
25 Pages Posted: 22 Nov 2005
Date Written: October 2005
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: Suggested Citation