The effect of administrative pay and local property taxes on student achievement scores: Evidence from New Jersey public schools

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1 Scopus citations

Abstract

We theorized that student test score performance will be positively related to the percentage of school district revenues raised from local taxes and with salary levels of school district administrators. Using both fixed and random effects panel analyses, we examine data for 217 Kindergarten-to-Grade 12 school districts in New Jersey for the years 2002-2009. Our results support the inference that increases in the percent of school funds raised locally have a positive influence on student test scores. However, the results for our hypothesis involving administrative costs were mixed. Administrative salaries and administrative spending were found to be positively related to test score performance in the one-way time fixed effects model, but not in the two-way models. Finally, classroom spending and the student-faculty ratio were found to be positive and significant in some of the tests, although not robust to alternative specifications.

Original languageAmerican English
Pages (from-to)1-16
Number of pages16
JournalEconomics of Education Review
Volume34
DOIs
StatePublished - Jun 2013

ASJC Scopus subject areas

  • Education
  • Economics and Econometrics

Keywords

  • Property taxes
  • School district administrative costs
  • Student achievement scores

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