The Money Myth

"The volume is unique in that it weaves theoretical discussions and interventions into existing school finance literature with careful empirical tests of the author's hypotheses with data from the National Educational Longitudinal Survey."
-CHOICE

"Original analysis that provides considerable insights into ways of improving education by using school resources in wiser and more sophisticated ways. The Money Myth shares a powerful conceptual approach with intriguing empirical results."
-HENRY M. LEVIN, William H Kilpatrick Professor of Economics and Education, Columbia University

"During the past decade, dozens of economists have refocused on education finance policy analysis but most of their analyses are based on large data sets of macro-variables and provide little insight into what works. Norton Grubb's new book, The Money Myth, stands out in this sea of analysis by going inside the black box of districts and schools to determine what factors such as teacher quality, curriculum, leadership, and school structure actually impact student performance. Though more work needs to be done, it is these kinds of micro-analyses that will move our knowledge forward about what resources matter to student and school performance."
-ALLAN ODDEN, professor of educational leadership and policy analysis, and, codirector, Strategic Management of Human Capital (SMHC), Consortium for Policy Research in Education (CPRE)

"The Money Myth does a masterful job of opening up the 'black box' of public schools-providing a convincing analysis of why increased per-pupil spending in U.S. schools has not lead to improved educational outcomes. The answer lies in identifying different types of resources that matter- such as instructional practices and school climate-resources that are not necessarily related to money. Norton Grubb shows how understanding which resources are effective in improving student outcomes can help explain and address the persistent problem of ethnic and racial inequality and the difficulty of educational reform, particularly high school reform."
-RUSSELL W. RUMBERGER, professor, Gervirtz Graduate School of Education, University of California, Santa Barbara

Can money buy high-quality education? Studies find only a weak relationship between public school funding and educational outcomes. In The Money Myth, W. Norton Grubb proposes a powerful paradigm shift in the way we think about why some schools thrive and others fail. The greatest inequalities in America’s schools lie in factors other than fiscal support. Fundamental differences in resources other than money—for example, in leadership, instruction, and tracking policies—explain the deepening divide in the success of our nation’s schoolchildren.

The Money Myth establishes several principles for a bold new approach to education reform. Drawing on a national longitudinal dataset collected over twelve years, Grubb makes a crucial distinction between “simple” resources and those “compound,” “complex,” and “abstract” resources that cannot be readily bought. Money can buy simple resources—such as higher teacher salaries and smaller class sizes—but these resources are actually some of the weakest predictors of educational outcomes. On the other hand, complex resources pertaining to school practices are astonishingly strong predictors of success. Grubb finds that tracking policies have the most profound and consistent impact on student outcomes over time. Schools often relegate low-performing students—particularly minorities—to vocational, remedial, and special education tracks. So even in well-funded schools, resources may never reach the students who need them most. Grubb also finds that innovation in the classroom has a critical impact on student success. Here, too, America’s schools are stratified. Teachers in underperforming schools tend to devote significant amounts of time to administration and discipline, while instructors in highly ranked schools dedicate the bulk of their time to “engaged learning,” using varied pedagogical approaches.

Effective schools distribute leadership among many instructors and administrators, and they foster a sense of both trust and accountability. These schools have a clear mission and coherent agenda for reaching goals. Underperforming schools, by contrast, implement a variety of fragmented reforms and practices without developing a unified plan. This phenomenon is perhaps most powerfully visible in the negative repercussions of No Child Left Behind. In a frantic attempt to meet federal standards and raise test scores quickly, more and more schools are turning to scripted “off the shelf” curricula. These practices discourage student engagement, suppress teacher creativity, and hold little promise of improving learning beyond the most basic skills.

Grubb shows that infusions of money alone won’t eradicate inequality in America’s schools. We need to address the vast differences in the way school communities operate. By looking beyond school finance, The Money Myth gets to the core reasons why education in America is so unequal and provides clear recommendations for addressing this chronic national problem.

W. NORTON GRUBB is David Pierpont Gardner Professor in Higher Education and faculty coordinator of the Principal Leadership Institute at the University of California, Berkeley.