Unintended Consequences—How Targeting Schools for Special Benefits in France Can Do More Harm Than Good

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Compensatory education policies—policies aimed at offsetting educational inequalities between socially and academically disadvantaged children and more advantaged students—are widely used and represent a significant part of public education spending in many countries. In France, they correspond to about ten percent of the annual spending per pupil. They provide underprivileged schools with additional resources to compensate for social and academic disadvantages. In a new JHR paper, Laurent Davezies (CREST) and Manon Garrouste (University of Lille) propose some evidence to explain why these programs are often not working as intended.
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Effective Policy for Reducing Poverty and Inequality? The Earned Income Tax Credit and the Distribution of Income

The United States stands out among industrialized nations as one with high poverty and income inequality. In 2016, the supplemental poverty measure shows that 13.9% of all persons, and 15.1% of children, lived in families with incomes below the poverty level. Since the mid-1970s earnings for less skilled workers have stagnated, and real family income for the bottom 20% of the population has made no gains. At the same time, there is the related problem of declines in employment rates among prime-aged men, and more recently, women. In a recent study, Hilary Hoynes and Ankur Patel examined whether one strategy to fight poverty—the earned income tax credit (EITC)—is working.
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