Commentary: An Australian Perspective on Inequality and Education

• In Event: Economic Inequality and Educational Opportunity: International Perspectives on Research and Policy Options

Abstract

The debate on the role of school resources in improving
educational outcomes has focused almost exclusively on spending
levels. We extend this by analyzing the relationship between
student achievement and schools' budget allocation decisions using 
unique panel data that link students' test scores to their
schools' financial data. Like others, we also find that per-pupil
expenditure has a modest relationship with improvement in
students' standardized test scores. However, the way that budgets
are allocated across spending categories also matters for student
achievement, particularly in grade 7. Ancillary teaching staff
seem especially important in promoting achievement growth in math
 and reading in primary- and middle-school years. Spending on
school leadership -- primarily principals -- is also linked to
faster growth in literacy levels in these same grades. On the
whole, schools' spending patterns are broadly efficient.

Author

• Deborah Cobb-Clark, The University of Melbourne