Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62950
Authors: 
Hægeland, Torbjørn
Raaum, Oddbjørn
Salvanes, Kjell Gunnar
Year of Publication: 
2007
Series/Report no.: 
Memorandum, Department of Economics, University of Oslo 2007,18
Abstract: 
Despite important policy implications associated with the allocation of education resources, evidence on the effectiveness of school inputs remains inconclusive. In part, this is due to endogenous allocation; families sort themselves non-randomly into school districts and school districts allocate money based in order to compensate (or reinforce) differences in child abilities, which leaves estimates of school input effects likely to be biased. Using variation in education expenditures induced by the location of natural resources in Norway, we examine the effect of school resources on pupil outcomes. We find that higher school expenditures, triggered by higher revenues from local taxes on hydropower plants, have a significantly positive effect on pupil performance at age 16. The IV estimates contrast with the standard cross-sectional estimates that reveal no effects of extra resources.
Subjects: 
Pupil achievement
school resources
JEL: 
I21
I28
J24
Document Type: 
Working Paper

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