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Public Education Spending and Income Inequality

Ishmael Amartey

arXiv 17 Jan 2026 · Econometrics

arXiv:2601.11928 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper investigates the relationship between public education spending and income inequality across U.S. counties from 2010 to 2022 using quantile regression methods. The analysis shows that total per pupil education spending is consistently associated with a small increase in income inequality, with stronger effects in high inequality counties. In contrast, the composition of education spending plays a substantially more important role. Reallocating budgets toward instructional, support service, and other current expenditures significantly reduces income inequality, particularly at the upper quantiles of the Gini distribution. Capital outlays and interest payments exhibit weaker and mixed effects. Economic and demographic factors, especially poverty, median income, and educational attainment, remain dominant drivers of inequality. Overall, the results demonstrate that how education funds are allocated matters more than how much is spent, underscoring the importance of budget composition in using public education policy to promote equity.

Citation extraction

11
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22
in-text mentions
11
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main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 89% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Artige, L. and Cavenaile, L (2023) Public education expenditures, growth and income inequality0.81142100%
2Sylwester, K (2002) Can education expenditures reduce income inequality?0.73732100%
3Glomm, G. and Ravikumar, B (1992) Public versus private investment in human capital: Endogenous growth and income inequality0.64422100%
4Glomm, G. and Ravikumar, B (2003) Public education and income inequality0.64422100%
5Goodspeed, T. J (2000) Education spending, inequality, and economic growth: Evidence from US states0.64422100%
6Schultz, T. W (1963) The economic value of education0.64422100%
7Darvas, Z (2020) Economic growth and income distribution implications of public spending and tax decisions0.51121100%
8Sylwester, K (2000) Income inequality, education expenditures, and growth0.51121100%
9de Mello, L. and Tiongson, E. R (2006) Income inequality and redistributive government spending0.40511100%
10Jackson, C. K. and Johnson, R. C. and Persico, C (2015) The effects of school spending on educational and economic outcomes: Evidence from school finance reforms0.40511100%

Showing the top 10 of 11 scored citations.