Presentation Title

State Lottery Implementation and High School Graduation Rates

Faculty Mentor

Roger White

Start Date

18-11-2017 11:30 AM

End Date

18-11-2017 11:45 AM

Location

9-251

Session

Interdisciplinary 2

Type of Presentation

Oral Talk

Subject Area

business_economics_public_administration

Abstract

Legalized gambling began in the early 1930's, when the first modern government-run U.S. lottery was implemented in Puerto Rico. Around 30 years later, New Hampshire adopted its state-run lottery and since then 43 other states, along with the U.S. Virgin Islands, implemented their own state lotteries. With the implementation of a new source of government funding, I examine the effect of implementing a state lottery has on high school graduation rates. The data set used in this paper was created using state level pooled times series data for the period 1985-2005. The data was gathered from the Department of Education, the Unites States Census Department, the Bureau of Labor Statistics, the Statistical Abstract of the United States, the National Center for Educational Statistics, the Educational Digest, and American College testing. I employ ordinary least squared regression models. The variables in the regression are as follows: High School Graduation Rates, Geographical Region, Lottery dummy, Primary and Secondary Education Spending, Average ACT, Average SAT, Unemployment Rate, Poverty Rate, White Population, State dummy, and Year dummy. To account for any problems with heteroskedasticity I employed White's test. Results were consistent with prior literature, and confirmed my hypothesis that states with lotteries implemented have higher high school graduation rates. It is important to also note that education spending policies should be supplemented with other socioeconomic policies to help combat poverty rates and unemployment levels, as these are also shown to have a statistically significant impact of graduation rates.

Summary of research results to be presented

Results were consistent with prior literature, and confirmed my hypothesis that states with lotteries implemented have higher high school graduation rates. Other statistically significant factors that influence graduation rates include poverty rates, unemployment levels, and primary and secondary educational spending. In my secondary regression models, I find that Average ACT and Average SAT scores were also positively affected by states that had a lottery in place. This contradicts my hypotheses and prior literature, that the implementation of a lottery does not have a statistically significant impact on SAT and ACT scores.

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Nov 18th, 11:30 AM Nov 18th, 11:45 AM

State Lottery Implementation and High School Graduation Rates

9-251

Legalized gambling began in the early 1930's, when the first modern government-run U.S. lottery was implemented in Puerto Rico. Around 30 years later, New Hampshire adopted its state-run lottery and since then 43 other states, along with the U.S. Virgin Islands, implemented their own state lotteries. With the implementation of a new source of government funding, I examine the effect of implementing a state lottery has on high school graduation rates. The data set used in this paper was created using state level pooled times series data for the period 1985-2005. The data was gathered from the Department of Education, the Unites States Census Department, the Bureau of Labor Statistics, the Statistical Abstract of the United States, the National Center for Educational Statistics, the Educational Digest, and American College testing. I employ ordinary least squared regression models. The variables in the regression are as follows: High School Graduation Rates, Geographical Region, Lottery dummy, Primary and Secondary Education Spending, Average ACT, Average SAT, Unemployment Rate, Poverty Rate, White Population, State dummy, and Year dummy. To account for any problems with heteroskedasticity I employed White's test. Results were consistent with prior literature, and confirmed my hypothesis that states with lotteries implemented have higher high school graduation rates. It is important to also note that education spending policies should be supplemented with other socioeconomic policies to help combat poverty rates and unemployment levels, as these are also shown to have a statistically significant impact of graduation rates.