This paper is offering a new identification strategy in order to estimate the effect of education resources on students’ achievements at the municipal level. We use the appointment of an external accountant to financially distressed municipalities in Israel as an instrumental variable for independent education expenditures, and control for selection bias. We find that the decline in independent education expenditures per capita in Arab municipalities did not affect the share of matriculation certification recipients. This result suggests that changes in municipal education resources might not affect students’ achievements, at least in less-developed municipalities.
Bibliographical noteFunding Information:
We would like to thank Oded Steklov, Momi Dahan, Esteban Klor, Avi Ben Bassat and Victor Lavy.
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- Education resources
- students’ achievements
ASJC Scopus subject areas
- Economics and Econometrics