The Relative Impact of Family Income Vs Per Student Expenditures on Education Outcomes in Washington

Abstract

Since education is often attributed to reducing wealth inequality, the growing wealth inequality in the United States has led to concerns on how wealth might affect education outcomes. Research regarding socioeconomic and per student expenditures on education outcomes, suggest a correlation between student outcomes and wealth inequality. However, prior research has only been conducted on how these factors influence education outcomes individually, no research has been done comparing the relative impact of family income and per student expenditures on student outcomes. I used multiple linear regression to determine the relationship between wealth and student outcomes, and compare the effects of median household income versus per student expenditures. I found that median household income overall had a more significant influence on education outcomes than per student expenditures in Washington public high schools. These outcomes were measured by graduation rates of high school, enrollment into four-year education, and percent not enrolled in post-secondary education. While median household income was found to have a significant relationship with all education outcomes, per student expenditures only had a statistically relationship with percent not enrolled in post-secondary education. Thus, inequality in per student expenditures had a significantly less influence on college enrollment compared to what previous research suggested. This suggests targeting differences in education originating from differences in socioeconomic status would be more effective than focusing on programs targeted at per student expenditures. Therefore, this research holds implications for policy makers and school administrators looking to improve student outcomes in high school.