Education resources and student performance: evidence from Arab municipalities in Israel

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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.

Original languageEnglish
Pages (from-to)4386-4403
Number of pages18
JournalApplied Economics
Issue number38
StatePublished - 2021

Bibliographical note

Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.


  • Education resources
  • municipalities
  • students’ achievements

ASJC Scopus subject areas

  • Economics and Econometrics


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