Finance

One frequently cited yet understudied channel through which money matters for college students is course availability- colleges may respond to budgetary pressure by reducing course offerings. Open admissions policies, binding class size constraints, and heavy reliance on state funding may make… more →

Many states have recently made or are considering changes to their teacher retirement systems. However, little is known about how teachers value various elements of their retirement benefits versus other aspects of their jobs and compensation. To help alleviate this gap, we use a discrete choice… more →

Most public colleges and universities rely heavily on state financial support. As state budgets have tightened in recent decades, appropriations for higher education have declined substantially. Despite concerns expressed by policymakers and scholars that the declines in state support have… more →

We replicate and extend prior work on Florida’s Bright Futures merit aid scholarship to consider its effect on college enrollment and degree completion. We estimate causal impacts using a regression discontinuity design to exploit SAT thresholds that strongly determine eligibility. We find no… more →

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… more →

In the U.S., state politicians directly influence legislation and budget decisions that can substantially affect public education spending and students. Does the political party of elected officials matter for these outcomes? We use a regression discontinuity design to analyze close house and… more →

Verification is a federally mandated process that requires selected students to further attest that the information reported on their FAFSA is accurate and complete. In this brief, we estimate institutional costs of administrating the FAFSA verification mandate and consider variation in costs by… more →

A recent literature provides new evidence that school resources are important for student outcomes. In this paper, we show that school finance reform-induced increases in student performance are driven by those states that had test-based accountability policies in place at the time. By… more →

Growing reliance on student loans and repayment difficulties have raised concerns of a student debt crisis in the United States. However, little is known about the effects of student borrowing on human capital and long-run financial well-being. We use variation induced by recent expansions in… more →

Our goal in this paper, presented at the 2020 Brookings Municipal Finance Conference, is to better understand teacher pension funding dynamics with a focus on sustainability and intergenerational… more →

Performance-based funding models for higher education, which tie state support for institutions to performance on student outcomes, have proliferated in recent decades. Some states have designed these policies to also address educational attainment gaps by including bonus payments for… more →

Valid and reliable measurements of teaching quality facilitate school-level decision-making and policies pertaining to teachers, but conventional classroom observations are costly, prone to rater bias, and hard to implement at scale. Using nearly 1,000 word-to-word transcriptions of 4th- and 5th… more →

Using detailed administrative data for public schools, we document racial and ethnic segregation at the classroom level in North Carolina, a state that has experienced a sharp increase in Hispanic enrollment. We decompose classroom-level segregation in counties into within-school and between-… more →

We investigate the male–female gap in principal compensation in state and national data: detailed longitudinal personnel records from the state of Missouri and repeated cross-sections from the nationally representative Schools and Staffing Survey (SASS). In both data sets, we estimate… more →

States and localities cannot avoid dealing with issues of teacher compensation. Not only is it the largest budget item for most local governments, but it is the place of largest leverage for improving the quality of schools. Fortunately, consistent research evidence directly informs ways to… more →

The effects of competition from public charter schools on district school budget decisions are theoretically ambiguous. Competitive pressures could increase desired budget autonomy since they give district school leaders more flexibility; however, competition could decrease desired budget… more →

Principals shape the academic setting of schools. Yet, there is limited evidence on whether principal professional development improves schooling outcomes. Beginning in 2008-09, Pennsylvania’s Inspired Leadership (PIL) induction program required that newly hired principals complete targeted in-… more →

Most racial and ethnic segregation—and most financial inequities—in American public schools occur between, not within, school districts. Solving these problems often requires interdistrict solutions based on cooperation within regions. This report uses three examples (Boston, MA; Hartford, CT;… more →

Recent research demonstrates that, when more money is spent on education for students from low-income families, achievement and graduation rates improve. So, too, do life outcomes such as employment, wages, and reduced poverty rates. Investments in instruction, especially high-quality teachers,… more →

Although there is considerable research on the elements of high-quality preschool and its many benefits, particularly for low-income children and English learners, little information is available to policymakers about how to convert their visions of good early education into on-the-ground… more →