Doctoral Dissertation Research in Economics: The Impacts of Special Education Access on Student Outcomes

University Of California-Davis, Davis CA

Investigators

Abstract

This proposed research project will use data and policy change in Texas to study the long-term effects of special education (SE) on students. Even though about 13 percent of public school students in the US are in SE and large amounts of money is spent on it, very little is known about the long-term impact of SE. This research project fills the gap. In 2005, the Texas legislature introduced a district level SE enrollment cap of 8.5% at a time when the average district had SE enrolment rate was 13%. To be compliant, school districts sharply reduced SE enrollment. The proposed research will use this policy change to identify the short- and long-term effects of participation in SE. The results of this research will shed light on the benefits and costs of SE as well as provide policy inputs into the design and implementation of SE programs. The results of this research project will therefore improve the development of US human capital, and as a result, increase economic growth. This proposal will use an exogenous change in policy to identify the causal impact of SE on short-term and long-term student outcomes. The study will exploit a 2005 policy change that mandated SE enrolment in Texas school districts to not exceed 8.5% at a time when the average SE enrolment rate was 13%. This resulted in several districts sharply cutting back SE enrolment. Utilizing across district variation in distance from this enrolment cap and students' years of policy exposure, the PIs will construct an instrument that captures the strength of policy pressure to reduce SE enrollment. The IV estimates reflect a local average treatment effect (LATE) for students whose diagnosis could be altered by school district change, thus providing the causal impact for students on the margin of SE placement. The results of this research project will provide guidance on policies to improve special education and human capital formation in the US. In addition to the estimates, the research project will create a large data set on SE that will be used as other researchers will use it to study the effects of special education in the US. This award reflects NSF's statutory mission and has been deemed worthy of support through evaluation using the Foundation's intellectual merit and broader impacts review criteria.