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Socioeconomic Inequality in School District Funding and Achievement

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Abstract

I use hierarchical linear modeling, fixed effects, and instrumental variables to document recent trends in district SES, funding, and achievement. I find that low-SES districts’ relative advantage in per pupil funding decreased between 2009 and 2019, and low-SES districts’ relative disadvantage in achievement increased over the same period. This suggests disparities in educational opportunities by district SES grew over the study period. Further, there appears to be little relationship between cross-district funding inequality and cross-district achievement inequality. These findings suggest school funding reforms alone may be insufficient levers for the more equitable distribution of funding across school districts.

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