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In one of the largest studies yet carried out on the subject, the average scores on statedeveloped and nationally standardized tests of third-, sixth-, and ninth-graders in New jersey districts were regressed on indexes of district socioeconomic status (SES), perstudent expenditures on education, and the size of enrollments in the districts. The numbers of districts entering the analyses, depending on grade level and test, varied from 261 to 507. SES accounted for much of the accountable variance; higher SES districts, of course, achieved more than lower SES districts. When SES was taken into account, higher expenditures were inconsistently and generally insignificantly (probability less than 0.05) associated with lower test scores; and students in smaller districts generally achieved more than those in larger districts. The inefficiency of expenditures and diseconomies of scale in raising achievement are contrary to popular and considerable opinion but corroborate previous research.

To investigate school size effects for secondary schools, 18 school outcomes, including the average scores on state-developed tests, student retention, suspensions, postschool employment, and college attendance for 293 public secondary schools in New Jersey were regressed on 23 school characteristics, including district socioeconomic status and percentages of students from low-income families; school size and number of schools within each district; and teacher characteristics encompassing salaries, degree status, and years of experience. District socioeconomic status and the percentage of students from low-income families in the school were the most influential and consistent factors related to schooling outcomes. School size was the next most consistent and was negatively related to outcomes. This finding corroborates previous research conducted primarily on public elementary schools and suggests that smaller school districts and smaller schools, regardless of socioeconomic status and grade level, may be more efficient at enhancing educational outcomes.

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