The Relationship Between Resources and Performance in Further Education Colleges

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Abstract
This paper uses data on Further Education (FE) colleges in England to examine the relationship between resources and performance. We model the relationship between inspection scores and resource levels to investigate whether colleges with greater expenditures perform better in terms of their inspections scores. Our findings, similar to others using different functional specifications, are that there is no evident positive link between unit resource levels and performance, but that a positive link between size and performance can be substantiated. The implications of this for policy and future research are discussed.