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The Returns to Public Library Investment

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  • Gregory Gilpin
  • Ezra Karger
  • Peter Nencka

Abstract

Local governments spend over $12 billion annually funding the operation of 15,427 public libraries in the United States, yet we know little about their effects. We use data describing the near universe of public libraries to show that public library capital investment increases library visits, children's attendance at library events, and children's circulation by an average of 5–15 percent in the years following investment. Increases in library use translate into improved test scores in nearby school districts: a $200 or greater per student capital investment in local public libraries increases reading test scores by 0.01–0.04 standard deviations in subsequent years.

Suggested Citation

  • Gregory Gilpin & Ezra Karger & Peter Nencka, 2024. "The Returns to Public Library Investment," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 78-109, May.
    • Handle: RePEc:aea:aejpol:v:16:y:2024:i:2:p:78-109
    DOI: 10.1257/pol.20210300
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    Cited by:

    1. Bigelow, Daniel P. & Kuethe, Todd, 2023. "The impact of preferential farmland taxation on local public finances," Regional Science and Urban Economics, Elsevier, vol. 98(C).
    2. Karger, Ezra, 2021. "The Long-Run Effect of Public Libraries on Children: Evidence from the Early 1900s," SocArXiv e8k7p, Center for Open Science.
    3. Borges Ferreira Neto, Amir & Nowicki, Jennifer & Shakya, Shishir, 2021. "Do Public Libraries Help Mitigate Crime? Evidence from Kansas City, MO," MPRA Paper 111073, University Library of Munich, Germany.

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    More about this item

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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