Political economy of the inequality in school spending

Abstract

This paper employs data from 45 states between 1972 and 1992 to investigate the basic forces affecting school resource inequality within a state. We consider a wide range of determinants of inequality, including voter preferences, the tax and political structure within the state, and the legal standing of education within the state constitution. We find that state constitutional language regarding equity affects the degree of school spending equality in the state, as does the political environment in the state and factors associated with the benefits and costs of Tiebout sorting into school districts.