Schools that increase spending may produce better outcomes for low-income students--for example, by significantly raising graduation rates.
A working paper, The Effect of School Finance Reforms on the Distribution of Spending, Academic Acheivement, and Adult Outcomes by the National Bureau of Economic Research (NBER), concluded that when schools increase their spending, low-income children are more likely to graduate from high school, earn liveable wages and avoid poverty in adulthood, said Education Week.
"For low-income students who spent all 12 years of school in districts that increased spending by 20 percent, graduation rates rose by 23 percentage points," said the article. The study looked at 15,000 children born between 1955 and 1985.
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Article by Kassondra Granata, EducationWorld Contributor
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