Seminar ‘Does targeted school budget support reduce achievement inequality?’

Time:                   13:00-14:00 Hrs

Venue:                CPB-Office, Bezuidenhoutseweg 30, Den Haag, room 3, ‘Braamzaal’

Presentation:  Joppe de Ree (CPB)

Discussant:      Robert Dur (EUR)

Language:        English

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Abstract:

This paper studies the rationale for and effectiveness of unconditional budget support for primary schools with many disadvantaged students. First, we present a simple economic model that could explain why governments choose to hand out these grants unconditionally and why schools then spend the unconditional funds on tutoring the underperformers. Second, we study an additional Dutch budget scheme for disadvantaged students at schools in relatively adverse neighborhoods. We show that school boards actually distribute funds over individual schools according to the government’s wishes. Moreover we show that schools do spend the money on extra teaching personnel. However, by exploiting the geographic cut-off rule in the budget formula, RD-estimates show that the extra teachers are not able to improve the performance of disadvantaged students, nor of the other students.

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