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A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case

Author

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  • BenDavid-Hadar, Iris

    (Bar-Ilan University)

  • Ziderman, Adrian

    (Bar-Ilan University)

Abstract

This paper sets out a new budget allocation formula for schools, designed to achieve a more equitable distribution of educational achievement. In addition to needs-based elements, the suggested composite allocation formula includes an improvement component, whereby schools receive budgetary allocations based on a new incentive measure developed in this paper (Improvement in the Educational Achievement Distribution, or IEAD). The development of the budget allocation formula is demonstrated utilizing Israeli data. Large scale, nationwide data sets relating students’ academic achievement to student background variables, teacher profiles and school characteristics, were analyzed to identify appropriate needs-based formula components and to estimate their weights. The results are compared with the funding formulas currently used in Israel.

Suggested Citation

  • BenDavid-Hadar, Iris & Ziderman, Adrian, 2010. "A New Model for Equitable and Efficient Resource Allocation to Schools: The Israeli Case," IZA Discussion Papers 4822, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp4822
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    References listed on IDEAS

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    5. Ritzen, Jozef M. M. & van Dommelen, Jan & De Vijlder, Frans J., 1997. "School finance and school choice in the Netherlands," Economics of Education Review, Elsevier, vol. 16(3), pages 329-335, June.
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    Cited by:

    1. Hazans, Mihails, 2010. "Teacher Pay, Class Size and Local Governments: Evidence from the Latvian Reform," IZA Discussion Papers 5291, Institute of Labor Economics (IZA).
    2. Hod Orkibi & Efrat Dafner, 2016. "Exposure to Risk Factors and the Subjective Wellbeing of Adolescents: the Mediating Role of Time Perspective," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 9(3), pages 663-682, September.

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    More about this item

    Keywords

    school finance; formular funding; needs-based funding; schools resource allocation; Israel;
    All these keywords.

    JEL classification:

    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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