Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/295966 
Year of Publication: 
2024
Series/Report no.: 
IZA Discussion Papers No. 16943
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
In 2015, Michigan increased it Career and Technical Education (CTE) funding and changed its funding formula to reimburse programsbased student progression through program curricula. Although this change nearly doubled program completion rates, student enrollment and persistence were unaffected; instead, administrators accelerated student progress by reorganizing course curricula around notches in the new funding formula. As a result of response heterogeneity, 30% of the funding increase is transferred away from high-poverty districts to more affluent ones, underscoring how supply-side responses to loopholes shape the incidence of public services.
Subjects: 
career and technical education
school funding
loopholes
JEL: 
I21
J24
I24
Document Type: 
Working Paper

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