In this paper, I examine how student academic achievements and behavior were affected by a school finance policy experiment undertaken in elementary schools in Israel. Begun in 2004, the funding formula changed from a budget set per class to a budget set per student, with more weight given to...

This paper uses an unusual pay reform to test the responsiveness of investment in schooling to changes in redistribution schemes that increase the rate of return to education. We exploit an episode where different Israeli kibbutzim shifted from equal sharing to productivity-based wages in...