In awarding the Nobel Prize for Economics in 2021, the Prize Committee said that there is strong empirical proof that money matters in education. This is an incredibly significant statement from a notoriously conservative institution. It represents a new consensus that has developed in recent years that more spending on education can increase school outcomes […]
Here is a list of studies since 2015 showing that money matters in education, especially for disadvantaged schools and students. Many of these studies have been reviewed on this site. The list was updated on 3 April 2022.
A new review of research studies has found that money matters in education. It shows that there is strong evidence of a positive relationship between school funding and student achievement and that particular school resources that cost money have a positive influence on student results. As well, more equitable allocation of funds between schools increases […]
For decades politicians and researchers have argued about whether money makes a difference in education. The funding increases recommended by the Gonski review of school funding brought these arguments to the fore again.
One of the strongest criticisms of the Gonski funding plan is that it failed to provide sound evidence that increased funding would lead to better student outcomes. It was widely claimed that research evidence shows that the relationship between per-student spending and student performance is weak [National Commission of Audit 2014a, 2014b, Ergas 2014, Justmann […]
A new review of research studies on the relationship between expenditure on schools and education outcomes has challenged the common view that more expenditure does not lead to better school performance. The review published by the UK Office for Standards in Education shows that numerous international studies conducted since the early 2000s show a positive […]
A new study published by the US National Bureau of Economic Research shows that money still matters in education. It found that school finance reforms in the US that increased expenditure in low income school districts increased high school completion and college entrance among Black students and females as well as increasing annual earnings. We […]
Evidence that money works in education continues to accumulate. A new study published in the latest issue of the American Economic Journal: Economic Policy shows that increased expenditure on schools improves student outcomes. It found substantial positive effects of increased spending on test scores, dropout rates, and post-secondary enrolment.
Three new US studies have found that increasing funding for disadvantaged students increases school results. They bring to 21 the number of studies in the last five years showing that funding increases targeted at disadvantaged students improves achievement. This is a remarkable degree of unanimity amongst education economists. Even notorious sceptics of the worth of […]
The following is a summary of a new report from the Learning Policy Institute in the United States on school finance reform. It reviews reforms by four US states to undertake progressive school funding strategies in order to substantially improve learning opportunities for all students. It provides recommendations for federal and state policies to address […]