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Title page

Contents

Abstract 3

1. Introduction 4

2. Background 7

2.1. Overview 7

2.2. Education Finance in Mississippi 8

3. A Model of School Resource Allocation 10

3.1. School Financing in the Absence of Equalization 11

3.2. School Financing in the Presence of Equalization 12

4. Empirical Analysis 16

4.1. School Funding Patterns 16

4.2. School Resources and Schooling Attainment 17

4.3. Regression Models 19

4.4. Impacts on the Lifetime Well-Being of Black Students 25

5. Concluding Remarks 28

References 42

A. Appendix: Additional Tables and Figures 45

Tables

Table 1. Summary Statistics, Individuals Aged 14-18 in Mississippi, 1940 38

Table 2. The Effect of Instructional Spending Per School-Age Child on Schooling Attainment, Black Students Aged 14-18 39

Table 3. The Effect of Instructional Spending per School-Age Child on Schooling Attainment, White Students Aged 14-18 40

Table 4. Effect of per capita County Instructional Spending on Outcomes in 2000, Black Children Living in Mississippi in 1940 41

Figures

Figure 1. Average Teacher Salaries per Pupil by Race, Mississippi vs. Three Comparison States (AL, GA, and SC) 30

Figure 2. Black Population Share and Relative Teaher Salaries, 1889-90 and 1936-27 31

Figure 3. School District Taxation Choices 32

Figure 4. Participation in Equalization Funding, Mississippi Counties, 1940 33

Figure 5. Equalization Funding Per Capita and Fraction Black in the Population 34

Figure 6. Instructional Spending per Capita and Fraction Black in the Population 35

Figure 7. Grade Attainment for Youth Aged 14-18 and Instructional Spending per Capita, by Race 36

Figure 8. Sensitivity of Regression Estimates to the Inclusion of Additional Covariates 37

Appendix Tables

Table A.1. School Quality Measures in Selected Southern States 48

Table A.2. Resources and Expenditures: Example for Three Counties 49

Table A.3. The Effect of Instructional Spending Per School-Age Child on Schooling Attainment, Black Students Aged 14-18, Trend Shift at 5 Dollars per Capita 50

Table A.4. The Effect of Instructional Spending Per School-Age Child on Schooling Attainment, White Students Aged 14-18, Equalization vs. No Equalization Counties 51

Table A.5. Effect of per capita County Instructional Spending on Educational Outcomes: Black Children in Mississippi, 1940, PIK Sample 52

Appendix Figures

Figure A.1. Overcount of Black children in 1929 School Census 45

Figure A.2. Relationship between School Taxes Levied and the Fraction Black in the Population 46

Figure A.3. Increase in Per Capita Funding for Black Students, 1954 Compared to 1952 47

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