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Firms for funding

The effect of Million Dollar Plants on school finances and student achievement

Datos Bibliográficos

ID11080552
AutoresRahul R Gupta (0009-0004-2490-9427, Georgetown University, autor de correspondencia), Viviana Rodriguez (0000-0003-4829-8101, The University of Texas at San Antonio)
Año2025
Volumen149
Páginas103794
Fecha de publicación2025-09-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaJournal of Urban Economics (JOURNAL)
Identificadores de la revistaISSN: 0094-1190 • E-ISSN: 1095-9068
EditorialElsevier BV (PUBLISHER)
DOI10.1016/j.jue.2025.103794
OpenAlexW4412738294
IdiomaEN
Referencias citadas29

We study the impact of large firm entry on local public education by comparing school districts in counties that win a Million Dollar Plant (MDP) to runner-up counties. Winning an MDP increases school district revenues by approximately 3%, primarily through higher local property tax collections. While total per pupil revenue rises modestly, we find gains in instructional spending and small improvements in test scores. Effects vary by firm type: manufacturing MDPs are associated with greater capital outlays but limited achievement gains, whereas high-tech MDPs see increased instructional spending and improved proficiency. Districts with MDPs in highly educated industries exhibit larger increases in instructional spending and student outcomes, even when overall revenue gains are similar

Academic achievement · Business · Economics · Exchange rate · Liberian dollar · Mathematics education · Monetary economics · Student achievement · Us dollar · Finance · Innovations in Educational Methods · Local Government Finance and Decentralization · Psychology · School Choice and Performance

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