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Why did Education Become Publicly Funded? Evidence from the Nineteenth-Century Growth of Public Primary Schooling in the United States

Published online by Cambridge University Press:  01 March 2009

Christiana Stoddard
Christiana Stoddard*
Affiliation:
Associate Professor, Department of Agricultural Economics and Economics, Montana State University, Bozeman, MT 59717. E-mail: cstoddard@montana.edu.
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Abstract

Why do voters publicly fund education? I examine two explanations: public funds may be a means for decisive voters to transfer wealth to themselves or voters may subsidize the education of others to raise social education levels and realize external benefits. I test these theories in the 1800s, when full tax support of primary schools emerged. States where median and mean wealth was closer together had higher fractions of education revenue from public sources. Attendance rates rose when the public share of education funding rose, especially for poor children. These facts are consistent with a model with external benefits of education.

Type
ARTICLES
Information
The Journal of Economic History , Volume 69 , Issue 1 , March 2009 , pp. 172 - 201
Copyright
Copyright © The Economic History Association 2009

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