School district consolidation is one of the most widespread education reforms of the last century, but surprisingly little research has directly investigated its effectiveness. To examine the impact of consolidation on student achievement, this study takes advantage of a policy that requires the consolidation of all Arkansas school districts with enrollment of fewer than 350 students for two consecutive school years. Using a regression discontinuity model, we find that consolidation has either null or small positive impacts on student achievement in math and English Language Arts (ELA). We do not find evidence that consolidation in Arkansas results in positive economies of scale, either by reducing overall cost or allowing for a greater share of resources to be spent in the classroom.
Jackson, Wigger, and Xiong (2020a, JWX) provide evidence that education spending reductions following the Great Recession had widespread negative impacts on student achievement and attainment. This paper describes our process of duplicating JWX and highlights a variety of tests we employ to investigate the nature and robustness of the relationship between school spending reductions and student outcomes. Though per-pupil expenditures undoubtedly shifted downward due to the Great Recession, contrary to JWX, our findings indicate there is not a clear and compelling story about the impact of those reductions on student achievement. Moreover, we find that the relationship between K-12 spending and college-going rates is likely confounded with contemporaneous higher education funding trends. While we believe that K-12 spending reductions may have negative impacts on student outcomes, our results suggest that estimating generalizable causal effects remains a significant challenge.