Tax limits and the qualifications of new teachers

This paper examines the impact of local tax limits on new teacher quality. Using data from the National Center for Education Statistics we find that t ax limits systematically reduce the average quality of education majors, as well as new public school teachers in states that have passed these limits . The average relative test scores of education majors in tax limit states declined by ten percent as compared to the relative test scores of educatio n majors in states that did not pass limits. This relationship is strengthe ned if we control for school finance equalization reforms or examine tax li mits passed in two different periods. (C) 2001 Elsevier Science B.V. All ri ghts reserved.