How important is school financing to student success?

January 15, 2020

Does School Spending Matter? The New Literature on an Old Question. The impact of school finances on student achievement has long interested educators. Research conducted before the mid-1990s suggested a link between the available resources provided schools and student outcomes, but much of this research is correlational. Because correlational research cannot imply causation, studies of a more rigorous nature are needed if policymakers are to redesign school financing that predictably maximizes learning for all students, regardless of the parent’s socio-economic status. Recently published studies employing larger data-sets and based on quasi-experimental methods offer a clearer understanding of how schools might be better funded. This paper of American United States school finances finds evidence to support the importance of providing equitable funding across school districts. These results have important policy implications and suggest areas for future research.

Citation: Jackson, C. K. (2018). Does school spending matter? The new literature on an old question (No. w25368). National Bureau of Economic Research.