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Do Pensions Enhance Worker Effort and Selection? Evidence from Public Schools

Why do employers offer pensions? We empirically examine two theoretical rationales, namely that pensions improve worker effort and worker selection. We test these hypotheses using rich administrative measures on effort and output for teachers around the pension-eligibility notch. When workers cross the notch, their effective compensation falls by roughly 50 percent of salary, but we observe no reduction in worker effort or output. This implies that pension payments do not increase effort. As for selection, we find that pensions retain low-value-added and high-value-added workers at the same rate, implying similar preferences across teacher quality and no influence on selection.

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Framing the pandemic: Tracking educational problem formulation, Spring 2020-Fall 2021

We use data from the applications North Carolina public school districts and charter schools submitted for Elementary and Secondary School Emergency Relief (ESSER) to investigate the sense that educational leaders made of the pandemic as it unfolded. LEAs understood the pandemic as a multifaceted problem. Nearly all applications addressed four problems: (1) public health, (2) academics and learning loss, (3) student and community well-being, and (4) instructional access. However, we document considerable variation in problem emphasis over time, across LEAs, and across organizational sector. The pandemic was not a single organizational problem, but many simultaneous problems posed in varying and shifting combinations. We argue this multi-faceted organizational view should be a starting point for assessments of LEAs’ pandemic response.

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More Money for Less Time? Examining the Relative and Heterogenous Financial Returns to Non-Degree Credentials and Degree Programs

There is a large and growing number of non-degree credential offerings between a high school diploma and a bachelor's degree, as well as degree programs beyond a bachelor’s degree. Nevertheless, research on the financial returns to non-degree credentials and degree-granting programs is often narrow and siloed. To fill this gap, we leverage a national sample of individuals across nine MSAs and four industries to examine the relative financial returns to a variety of non-degree credentials and degree programs. Leveraging two-way fixed-effect models, we explore the relationship between completing a credential or degree and earnings premiums. We find that an associate’s, bachelor’s, master’s and doctorate degree follows a similar model of returns in which the number of schooling years is linearly related to proportional earnings premiums. However, students completing sub-baccalaureate certificates and earning non-school credentials appear to get larger financial returns for less time. Additionally, while we noticed subtle differences across degree programs, we noticed substantial differences in non-school credentials: only women experienced a significant earnings premium from a non-degree credential. Finally, in terms of race/ethnicity, students of color often experienced larger economic returns to undergraduate certificates and degree programs.

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How and Why Racial Isolation Affects Education Costs & the Provision of Equal Educational Opportunity
Bruce D. Baker.

This article provides a review of prior empirical work exploring whether and to what extent school district racial composition affects the costs associated with providing equal educational opportunity to achieve a common set of outcomes. This prior work mainly involves education cost function modeling, on several specific states and in an earlier version of our national education cost model. Here, we update the national education cost model and apply a series of tests for selecting the optimal cost model and determining a) whether it is necessary to retain measures of racial composition in the model and b) the effect those measures have on the estimated costs to achieve common outcomes. We find that the optimal model includes an interaction term between % enrollment that is black and population density and that for majority Black enrollment urban districts, the predicted costs per pupil are 20 to 50% higher when using models with this measure than when using models with race neutral alternatives. While changes in cost estimates for these districts are large, aggregate national cost increases from including racial composition are 1.3 to 2.7% in most years.

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The Causes and Consequences of U.S. Teacher Strikes

The U.S. has witnessed a resurgence of labor activism, with teachers at the forefront. We examine how teacher strikes affect compensation, working conditions, and productivity with an original dataset of 772 teacher strikes generating 48 million student days idle between 2007 and 2023. Using an event study framework, we find that, on average, strikes increase compensation by 8% and lower pupil-teacher ratios by 0.5 students, driven by new state revenues. We find little evidence of sizable impacts on student achievement up to five years post-strike, though strikes lasting 10 or more days decrease math achievement in the short-term.
JEL: I22, J30, J45, J52.

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The Impact of Additional Funding on Student Outcomes: Evidence from an Urban District Using Weighted Student Funding and Site-based Budgeting

This study uses a concurrent embedded mixed-methods design to assess the impact of additional funding on student outcomes in a large, urban school district in the Southeastern United States. The district implemented student-based budgeting (SBB), which allocates dollars to schools based on student characteristics using a weighted student funding (WSF) formula and provides flexibility to principals to allocate those dollars under site-based budgeting. Using simulated instruments in a difference-in-differences framework, we estimate the impact of additional funding on student outcomes provided by WSF. Student test scores in math and ELA increased by 0.14 and 0.12 standard deviations, respectively. Our qualitative analysis suggests that the flexibility given to principals was a key mechanism that improved student outcomes.

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When Money Matters Most: Unpacking the Effectiveness of School Spending

Targeted school funding is a potentially valuable policy lever to increase educational equality by race, ethnicity, and income, but it remains unclear how to target funds most effectively. We use a regression discontinuity approach to compare districts that narrowly passed or failed a school funding election. We use close tax elections in 9 states to identify effects of operating funds and close bond elections in 8 states to identify effects of capital funds. Results indicate positive achievement returns to spending, especially for math achievement and for operating funds. We find similar returns to spending by race, ethnicity, and income (not statistically different), but we find significantly larger returns for students in low-resource districts than in high-resource districts, including larger returns for Black, Latinx, and low-income students. Mediation analyses suggest spending on teacher salaries and counselors may be particularly effective mechanisms to increase achievement among Black and low-income students.

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Priceless Benefits: Effects of School Spending on Child Mortality

The academic and economic benefits of school spending are well-established, but focusing on these outcomes may underestimate the full social benefits of school spending. Recent increases in U.S. child mortality are driven by injuries and raise questions about what types of social investments could reduce child deaths. We use close school district tax elections and negative binomial regression models to estimate effects of a quasi-random increase in school spending on county child mortality. We find consistent evidence that increased school spending from passing a tax election reduces child mortality. Districts that narrowly passed a proposed tax increase spent an additional $243 per pupil, mostly on instruction and salaries, and had 4% lower child mortality after spending increased (6-10 years after the election). This increased spending also reduced child deaths of despair (due to drugs, alcohol, or suicide) by 5% and child deaths due to accidents or motor vehicle accidents by 7%. Estimates predicting potential mechanisms suggest that lower child mortality could partly reflect increases in the number of teachers and counselors, higher teacher salaries, and improved student engagement.

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Experimental Estimates of College Coaching on Postsecondary Re-enrollment

College attendance has increased significantly over the last few decades, but dropout rates remain high, with fewer than half of all adults ultimately obtaining a postsecondary credential. This project investigates whether one-on-one college coaching improves college attendance and completion outcomes for former low- and middle-income income state aid recipients who attended college but left prior to earning a degree. We conducted a randomized control trial with approximately 8,000 former students in their early- to mid-20s. Half of participants assigned to the treatment group were offered the opportunity to receive coaching services from InsideTrack, with all communication done remotely via phone or video. Intent-to-treat analyses based on assignment to coaching shows no impacts on college enrollment and we can rule out effects larger than a two-percentage point (5%) increase in subsequent Fall enrollment.

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Some Promises are Worth More than Others: How “Free Community College” Programs impact Postsecondary Participation, Destinations, and Degree Completion

“Free college” programs are widespread in American higher education. They are discussed as addressing college access, affordability, inequality, and skills shortages. Many are last-dollar tuition guarantees restricted to use at single community colleges. Using student-level data spanning the transition to college, we investigate how two similar local community college tuition guarantees in Pennsylvania affected college-going outcomes. The Morgan Success Scholarship has large impacts on community college attendance and associate degree attainment. The program diverts students away from four-year colleges, though much of this effect is temporary. Meanwhile, we find little evidence that the Community College of Philadelphia’s 50th Anniversary Scholars program has any impact on college-going behavior. We suggest reasons for divergent findings and offer suggestions for practice.

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