In Search of Dynamic Complementarities between Early and Later Education: Evidence from North Carolina’s Pre-K and K–12 School Funding Reforms

Abstract

We extend Johnson and Jackson's (2019) seminal paper on dynamic complementarities between early and late educational opportunities using modern-day programs in North Carolina. We exploit exogenous variation in the allocations made to counties for state pre-K funding (NC Pre-K) and K-12 funding allocations made to districts resulting from a court-ordered school funding reform known as the Disadvantaged Student Supplemental Fund (DSSF)—both during the mid-2000s. We find that DSSF-induced increases in K-12 per pupil expenditures had null or possibly negative impacts on students' fifth grade academic achievement. We also find no evidence of complementarities with NC Pre-K investments.