Abstract
The Israeli government regularly uses the Educational Needs Index (ENI) to determine the resources needed to educate children growing up in less affluent environments. This paper investigates some results of this practice. By using data from children who were tested in nationwide exams at grades 5 and 8 we find that in Mathematics, at the school level, the negative correlation between the average test scores and the ENI is about 2.2 times higher in grade 8 than in grade 5 and that children from low index schools are more likely to improve their scores. OLS and quantile regressions of a value-added model on a subsample of the data emphasize the importance of parental education to children's educational attainment. It also shows a negative effect of the ENI on test scores. Our final conclusion is that the Israeli education policy fails to fully guarantee equality of opportunity to its students.
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