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Since the Coleman Report, many have questioned whether public school spending affects student outcomes. The school finance reforms that began in the early 1970s and accelerated in the 1980s caused dramatic changes to the structure of K–12 education spending in the United States. To study the effect of these school finance reform–induced changes in public school spending on long-run adult outcomes, we link school spending and school finance reform data to detailed, nationally representative data on children born between 1955 and 1985 and followed through 2011. We use the timing of the passage of court-mandated reforms and their associated type of funding formula change as exogenous shifters of school spending, and we compare the adult outcomes of cohorts that were differentially exposed to school finance reforms, depending on place and year of birth. Event study and instrumental variable models reveal that a 10% increase in per pupil spending each year for all 12 years of public school leads to 0.31 more completed years of education, about 7% higher wages, and a 3.2 percentage point reduction in the annual incidence of adult poverty; effects are much more pronounced for children from low-income families. Exogenous spending increases were associated with notable improvements in measured school inputs, including reductions in student-to-teacher ratios, increases in teacher salaries, and longer school years.

We compare the adult outcomes of cohorts who were differentially exposed to policy-induced changes in Head Start and K–12 spending, depending on place and year of birth. IV and sibling-difference estimates indicate that, for poor children, these policies both increased educational attainment and earnings, and reduced poverty and incarceration. The benefits of Head Start were larger when followed by access to better-funded schools, and increases in K–12 spending were more efficacious when preceded by Head Start exposure. The findings suggest dynamic complementarities, implying that early educational investments that are sustained may break the cycle of poverty.

Using longitudinal elementary school teacher and student data, we document that students have larger test score gains when their teachers experience improvements in the observable characteristics of their colleagues. Using within-school and within-teacher variation, we show that a teacher's students have larger achievement gains in math and reading when she has more effective colleagues (based on estimated value-added from an out-of-sample pre-period). Spillovers are strongest for less experienced teachers and persist over time, and historical peer quality explains away about 20 percent of the own-teacher effect, results that suggest peer learning.

In Trinidad and Tobago students are assigned to secondary schools after the fifth grade, based on achievement tests, leading to large differences in the school environments to which students of differing initial levels of achievement are exposed. I use instrumental variables based on the discontinuities created by the assignment mechanism and exploit rich data which include students' test scores at entry and secondary school preferences to address self‐selection bias. I find that attending a better school has large positive effects on examination performance at the end of secondary school. The effects are about twice as large for girls than for boys.

Teachers affect a variety of student outcomes through their influence on both cognitive and noncognitive skill. I proxy for students’ noncognitive skill using non–test score behaviors. These behaviors include absences, suspensions, course grades, and grade repetition in ninth grade. Teacher effects on test scores and those on behaviors are weakly correlated. Teacher effects on behaviors predict larger impacts on high school completion and other longer-run outcomes than their effects on test scores. Relative to using only test score measures, using effects on both test score and noncognitive measures more than doubles the variance of predictable teacher impacts on longer-run outcomes.

The reshuffling of students due to the end of student busing in Charlotte‐Mecklenburg provides a unique opportunity to investigate the relationship between changes in student attributes and changes in teacher quality that are not confounded with changes in school or neighborhood characteristics. Comparisons of ordinary least squares and instrumental variable results suggest that spatial correlation between teachers’ residences, students’ residences, and schools could lead to spurious correlation between student attributes and teacher characteristics. Schools that experienced a repatriation of black students experienced a decrease in various measures of teacher quality. I provide evidence that this was primarily due to changes in labor supply.

Unlike in elementary school, high school teacher effects may be confounded with both selection to tracks and track-level treatments. I document confounding track effects and show that traditional tests for the existence of teacher effects are biased. After accounting for biases, high school algebra and English teachers have smaller test score effects than found in previous studies and value-added estimates are weak predictors of teachers’ future performance. Results indicate that either (a) teachers are less influential in high school than in elementary school or (b) test score effects are a weak measure of teacher quality at the high school level.

I investigate the importance of the match between teachers and schools for student achievement. I show that teacher effectiveness increases after a move to a different school and estimate teacher-school match effects. Match quality explains away a quarter of and has two-thirds the explanatory power of teacher quality. Match quality is negatively correlated with school switching, is unrelated to exit, and increases with experience. This paper provides the first estimates of worker-firm match quality using output data, as opposed to inferring productivity from wages or employment durations. The results suggest that workers seek high-quality matches for reasons other than higher pay.

During the Great Recession, national public school per-pupil spending fell by roughly 7 percent and persisted beyond the recovery. The impact of such large and sustained education funding cuts is not well understood. To examine this, first, we document that the recessionary drop in spending coincided with the end of decades-long national growth in both test scores and college-going. Next, we show that this stalled educational progress was particularly pronounced in states that experienced larger recessionary budget cuts for plausibly exogenous reasons. To isolate budget cuts that were unrelated to (i) other ill-effects of the recession or (ii) endogenous state policies, we use states’ historical reliance on state-appropriated funds (which are more sensitive to the business cycle) to fund public schools interacted with the timing of the recession as instruments for reductions in school spending. Cohorts exposed to these spending cuts had lower test scores and lower college-going rates. The spending cuts led to larger test score gaps by income and race.

This study investigates the role of social networks in aligning the incentives of agents in settings with incomplete contracts. Specifically, the study examines the New York City taxi industry where taxis are often leased and lessee-drivers have worse driving outcomes than owner-drivers due to moral hazard. Using within-driver variation and instrumental variable strategies to remove selection, we find that drivers leasing from members of their country-of-birth community exhibit significantly reduced effects of moral hazard, representing an improvement of almost one-half of a standard deviation of the outcome measures. Screening is ruled out as an explanation, and other mechanisms are investigated.