More is not always better. Effect of educational expenditures on education quality and social mobility in Switzerland

Abstract

Over the past 20 years, per-student spending on compulsory education in Switzerland has risen by 52 percent in real terms. However, per-pupil expenditures vary significantly across cantons. The question quickly arises whether “more is always better”. Switzerland lends itself to this analysis because spending authority lies with the cantons and thus provides a good setting for a within-country analysis. We use a new comprehensive dataset to measure educational quality and mobility at the individual level. Our analysis shows that higher cantonal spending does not increase educational quality or mobility. The allocation of education spending seems to be more important than its mere amount. For example, our study suggests a better linguistic integration of foreign-speaking students.