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The Lingering Legacy of Redlining on School Funding, Diversity, and Performance

Between 1935-1940 the Home Owners' Loan Corporation (HOLC) assigned A (minimal risk) to D (hazardous) grades to neighborhoods that reflected their "mortgage security" and visualized these grades on color-coded maps used by banks and other mortgage lenders to provide or deny home loans within residential neighborhoods. In this study, we leverage a spatial analysis of 144 HOLC-graded core-based statistical areas (CBSAs) to understand how historic HOLC maps relate to current patterns of school funding, racial diversity, and performance. We find districts and schools located today in historically redlined neighborhoods have less district-level per-pupil revenues, larger shares of Black and non-White student bodies, less diverse student populations, and worse average test scores relative to those located in A, B, and C neighborhoods. These nationwide results are consistent by region and when controlling for CBSA. Finally, we document a persistence in these patterns across time, with overall positive time trends regardless of HOLC grade but widening gaps between D vs. A, B, and C outcomes. These findings suggest that education policymakers need to consider the historical implications of redlining and past neighborhood inequality on neighborhoods today when designing modern interventions focused on improving life outcomes of students of color.

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EdWorkingPaper suggested citation:

Lukes, Dylan, and Christopher Cleveland. (). The Lingering Legacy of Redlining on School Funding, Diversity, and Performance. (EdWorkingPaper: 21-363). Retrieved from Annenberg Institute at Brown University:

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