On Union College Week: What can we do to improve education for Black students in majority white communities?

Stephen Schmidt, Kenneth B. Sharpe Professor of Economics, examines possible solutions.

Faculty Bio:

Stephen Schmidt has been professor of economics at Union College since 1994, after completing his Ph.D. in economics at Stanford University. He was appointed the Kenneth B. Sharpe Professor of Economics in September 2019. His research interests include the economics of education, especially education finance, and the normative evaluation of economic outcomes and policies. He has published articles in American Economic Review (Papers & Proceedings), Journal of Public Economics, Contemporary Economic Policy, Economics of Education Review, Journal of Higher Education, Theoria, Restoration Ecology, Journal of Economic Education, Journal of Transport Economics and Policy, Southern Economic Journal, International Journal of Industrial Organization, and others. He teaches courses in econometrics, game theory, intermediate microeconomics, the economics of race, and normative economics, as well as the College’s first-year inquiry seminar.

Transcript:

There is a racial divide in the United States economy, which means that people of different racial and ethnic identities don’t have the same economic prospects in life. One source of this divide is differences in education. Students of color, especially African-Americans, often don’t get the same level of education funding that other students get. One explanation for this pattern is stigmatization theory. It says that when members of a majority stigmatize a minority, they spend less on public services, since the stigmatized group cannot be excluded from the benefits of those services. My research examines the way school districts set spending levels to see if the patterns that stigmatization theory predicts are found in the data. In particular, I look to see whether the racial composition of a district’s student body affects spending levels differently when the adult voters in the district are dominantly White. There is good news, which is that in districts where the adult voters are less than about 90% White, education funding is higher when the student body contains more African-American or Hispanic students - presumably to address disadvantages children in those communities face. But, in districts with more than about 90% White voters, this effect is found only for Hispanic students, not for African-American students. Why are only African-American students, not Hispanic students, treated differently when districts have highly White voters? Stigmatization can explain this pattern. If White voters stigmatize African-American children - but not Hispanic children – and they can only act on this stigmatization when they are dominant in education politics, then we would see the pattern that we actually see in the data. What should we do? We can redraw district lines in ways that increase the diversity of voters, not just students, where that is possible. When it isn’t possible, state governments could provide funding that local voters are reluctant to provide.

Racial Stratification and Local Education Funding

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Stephen Schmidt, Union College - Making A [Tax] Effort for Black Students' Education

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Stephen Schmidt, Union College - Making A [Tax] Effort for Black Students' Education