Economic inequality and the provision of schooling

Downes, Thomas A.; Figlio, David N.

Journal Article

Economic inequality and the provision of schooling

Abstract: This paper was presented at the conference \\"Unequal incomes, unequal outcomes? Economic inequality and measures of well-being\\" as part of session 3, \\"Education and crime in urban neighborhoods.\\" The conference was held at the Federal Reserve Bank of New York on May 7, 1999. The authors examine the empirical evidence on the relationship between school finance reform and student outcomes, review the economic literature in the field, and present new evidence of the effects of reform on community and school composition. They argue that if one's goal is to reduce income inequality substantially, one should not look to school finance reform as a particularly effective policy instrument. Even the most optimistic estimates of the impact of school finance reform on the distribution of student performance indicate that these effects are relatively small. Furthermore, the authors note that these small gains may come at a cost - the movement of higher income families into private sector schools, a development that would lead to less diversity within the public schools.

Keywords: Income; Education; Income distribution;

Status: Published in Unequal incomes, unequal outcomes? Economic inequality and measures of well-being