The Effect of Additional Funds for Low-ability Pupils: A Non-parametric Bounds Analysis

Abstract

This article investigates the effect of a policy measure that gives secondary schools additional resources for low-ability pupils. Schools are free in deciding how to spend the additional money. I use a non-parametric bounds analysis to estimate upper and lower bounds on the effect of additional funds on examination results of pupils. First, I investigate what can be concluded without imposing assumptions; next I layer weak non-parametric assumptions to tighten the bounds. The tightest bounds show that the additional school funds significantly increase the probability that a pupil passes the examination at the end of secondary education.