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Title page

Contents

Abstract 2

1. Introduction 3

2. Background 6

2.1. Overview 6

2.2. Education Finance in Mississippi 7

3. A Model of School Resource Allocation 9

3.1. School Financing in the Absence of Equalization 10

3.2. School Financing in the Presence of Equalization 11

4. Empirical Analysis 15

4.1. School Funding Patterns 15

4.2. School Resources and Schooling Attainment 16

4.3. Regression Models 18

4.4. Impacts on the Lifetime Well-Being of Black Students 24

5. Concluding Remarks 27

A. Appendix: Additional Tables and Figures 44

References 41

Table 1. Summary Statistics, Individuals Aged 14-18 in Mississippi, 1940 37

Table 2. The Effect of Instructional Spending Per School-Age Child on Schooling Attainment, Black Students Aged 14-18 38

Table 3. The Effect of Instructional Spending per School-Age Child on Schooling Attainment, White Students Aged 14-18 39

Table 4. Effect of per capita County Instructional Spending on Outcomes in 2000, Black Children Living in Mississippi in 1940 40

Figure 1. Average Teacher Salaries per Pupil by Race, Mississippi vs. Three Comparison States (AL, GA, and SC) 29

Figure 2. Black Population Share and Relative Teaher Salaries, 1889-90 and 1936-27 30

Figure 3. School District Taxation Choices 31

Figure 4. Participation in Equalization Funding, Mississippi Counties, 1940 32

Figure 5. Equalization Funding Per Capita and Fraction Black in the Population 33

Figure 6. Instructional Spending per Capita and Fraction Black in the Population 34

Figure 7. Grade Attainment for Youth Aged 14-18 and Instructional Spending per Capita, by Race 35

Figure 8. Sensitivity of Regression Estimates to the Inclusion of Additional Covariates 36

Table A.1. School Quality Measures in Selected Southern States 47

Table A.2. Resources and Expenditures: Example for Three Counties 48

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 49

Table A.4. The Effect of Instructional Spending Per School-Age Child on Schooling Attainment, White Students Aged 14-18, Equalization vs. No Equalization... 50

Table A.5. Effect of per capita County Instructional Spending on Educational Outcomes: Black Children in Mississippi, 1940, PIK Sample 51

Figure A.1. Overcount of Black children in 1929 School Census 44

Figure A.2. Relationship between School Taxes Levied and the Fraction Black in the Population 45

Figure A.3. Increase in Per Capita Funding for Black Students, 1954 Compared to 1952 46

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