Also, in 1999 the percent of the families in school districts in the bottom quartile of the within-state distribution across school districts of per capita income in 1980 is 15.15. [...] In fact, the result differs from what we get when we use all districts in the CCD and limit the sample to fiscal years that match with the PSID data.14 This suggests that our counter-intuitive first-stage estimates result from the fact that the school districts represented in the PSID are a nonrandom sample of all districts in the U. [...] This suggests that the reduction in spending is linked to the dislocation of the move, since movers and stayers respond in the same ways to changes in the characteristics of the public schools. [...] Is this just an extreme example of the willingness of parents to improve the relative standing of their children? And, outside of the lab, is that willingness sensitive to the perceived conditions in the local public schools and the peers in them? Our analysis provides evidence on sources of this willingness by examining the determinants of families’ supplemental spending on education, with a focu. [...] Supplementary spending does 14 of 26 seem to be sensitive to the racial/ethnic composition of local school districts, with the pat- tern of the estimates suggesting more families choose private school when the share of the student population in the public schools that is minority is higher.
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Table of Contents
- Thomas Downes Tufts University 1
- Kieran M. Killeen University of Vermont 1
- June 2024 1
- Acknowledgements 2
- NEPC Staff 2
- When Schools Spend Less Do Families Spend More The Responsiveness of Supplementary Education Spending to Changes in the Local Schooling Context 3
- Thomas Downes Tufts University Kieran M. Killeen University of Vermont 3
- June 2024 3
- When Schools Spend Less Do Families Spend More The Responsiveness of Supplementary Education Spending to Changes in the Local Schooling Context 4
- Thomas Downes Tufts University Kieran M. Killeen University of Vermont 4
- June 2024 4
- Introduction 4
- Supplementary Spending Its Importance and Its Determinants 6
- Review of the Literature 6
- Our Identification Strategy 8
- Data 9
- Models and Methods 11
- Results 12
- Concluding Remarks 14
- Endnotes 16
- References 18
- Table 1 21
- Summary Statistics 21
- Table 2 22
- First-Stage Estimates for Per-pupil Current Expenditures and Fraction Minority 22
- Table 3 23
- Determinants of Families Supplementary Education Expenditures 23
- Table 4 24
- Reduced-Form Specification of Determinants of Families Education-Related Expenditures 24
- Figure 1 25
- Appendix 26
- Table A1 26
- First-Stage Estimates for Per-pupil Current Expenditures and Fraction Minority using Full Common Core of Data 26
