America’s “Great Equalizer”? Modern Trends in Education Funding Disparities and New Policy Solutions

Abstract

For decades, debates around education access and funding have become increasingly potent, as an extensive body of research has made the correlation between human capital and future outcomes abundantly clear. As inequality deepens, Americans continually question whether the American Dream still exists, and economists are scrambling to identify the underlying origin. In light of these trends, this paper aims to highlight issues in education funding, which perpetuate institutionalized divisions by class and race, and illuminate how those disparities translate into broader economic issues that extend far beyond the classroom. Following an analysis of status-quo funding measures, I will turn to a series of potential policy interventions that aim to reduce disparities by desegregating opportunity access via housing voucher and wage subsidy remedies. After conducting a cost-benefit analysis of each policy using data from multiple studies, I will conclude my analysis with common next steps necessary to make policies effective going forward.