This research project will evaluate the impact of government subsidies of investment in Internet and communication technology by schools in the U. S. (known as the E-Rate program. The investigators will use data on Internet investment, E-Rate applications and student performance in California public schools. In particular, the research will test whether E-Rate funds went disproportionately to low-Internet schools and whether the subsidy induced an increase in Internet investment. It will also test whether increased Internet investment in public schools led to improved student outcomes in higher test scores or better student performance as measured according to other dimensions.
This research topic is important because the increasing economic significance of the Internet has led to concern among policy makers about the existence of a digital divide between those who use information technology and those who do not. Schools are typically viewed as one of the only ways to reach the underserved population and the E-Rate is the largest federal school technology subsidy in history. Understanding its effect is crucial for understanding the role of technology in schools and its effect on students' education.
