Education Funding and Dropout Trends in Abbott Districts: An Empirical Analysis of a New Jersey Legal Ruling Open Access
Islam, Shefain (Spring 2018)
Abstract
Education funding is a topic of controversy across the United States. New Jersey has been
attempting to correct education inequity caused by education-funding laws through a series of
reforms. The Abbott laws and rulings are the most famous education-funding reforms that New
Jersey has made. Using panel data from the State of New Jersey Department of Education, this
paper studies the effect of Judge Neil Schuster’s 2005 ruling regarding the Abbott reforms on
dropout trends in 27 of the designated Abbott school districts. In this study, the fixed effects
model is primarily used. The fixed effects model identifies some statistically significant effects
of the 2005 Abbott ruling on dropout, but further research is required for a more comprehensive understanding of the effect of the 2005 Abbott ruling on school outcomes.
Table of Contents
I. Introduction ................................................................................................. 1
II. Literature Review ......................................................................................... 6
III. Data and Empirical Analysis ................................................................................. 8
IV. Results ..................................................................................................... 16
V. Discussion ............................................................................................................. 18
VI. Conclusion ....................................................................................................... 19
References ................................................................................................ 21
Tables ........................................................................................................... 24
Table 1: Sample Means and Standard Deviations of All Variables by Year ................ 24
Table 2: Fixed Effects and Random Effects Analysis for Total Dropout .............. 25
Table 3: Fixed Effects Analysis for Black Male Dropout and White Male Dropout....... 26
Table 4: Fixed Effects Analysis for Black Male Dropout and Black Female Dropout ..... 27
Table 5: Fixed Effects Analysis for White Male Dropout and White Female Dropout .... 28
Appendix ............................................................... 29
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