School Resources and Student Achievement Revisited: New Evidence Using Panel Data

In this study we analyse the effects of the changes in the school spending on the matriculation examination results. We use a large sample of Finnish senior secondary school students from the years 1990-1998. Teaching expenditure did not have a significant effect on the average test scores. Increase in teaching expenditure did, however, improve test scores in additional language exams. Comprehensive school GPA and parents education are the best explanatory variables for student achievement. Boys perform slightly better, when comprehensive school GPA is controlled for. Work during the school year decreases test scores.