Abstract
This paper examines the impact of local tax limits on new teacher quality. Using data from the National Center for Education Statistics we find that tax limits systematically reduce the average quality of education majors, as well as new public school teachers in states that have passed these limits. The average relative test scores of education majors in tax limit states declined by ten percent as compared to the relative test scores of education majors in states that did not pass limits. This relationship is strengthened if we control for school finance equalization reforms or examine tax limits passed in two different periods.
Original language | English (US) |
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Pages (from-to) | 49-71 |
Number of pages | 23 |
Journal | Journal of Public Economics |
Volume | 80 |
Issue number | 1 |
DOIs | |
State | Published - Apr 2001 |
Funding
We would like to thank Elizabeth Berko and John Krieg for excellent research assistance and Julian Betts, Bill Fowler, Caroline Hoxby, Hans Johnson, Larry Kenny, Tom MaCurdy, Dick Murnane, Sheila Murray and Jon Sonstelie for helpful conversations. Thanks also to Roger Gordon and three anonymous referees for this journal for helpful advice. We have benefitted from comments from seminar participants at the Universities of California at Berkeley, Davis, and Santa Barbara, the University of Florida, the University of Oregon, the Public Policy Institute of California, California State University-Sacramento, and the National Bureau of Economic Research, as well as several conferences. We are grateful to the National Center for Education Statistics of the US Department of Education for providing us with the data for this project, and to the National Science Foundation, American Education Finance Association and the National Center for Education Statistics, for financial support. All opinions are the authors’, rather than those of their employing institutions or of the founding institutions.
Keywords
- H73
- I21
ASJC Scopus subject areas
- Finance
- Economics and Econometrics