Education Spending Research Articles

Peru: Incidence of Educational Spending on Income Inequality

En los últimos 10 años en el Perú, en las administraciones de gobierno ha surgido un interés especial en reducir la desigualdad de los ingresos a través de diferentes políticas, entre ellas, la educativa. El objetivo del presente artículo es evaluar la incidencia de dicha política mediante el gasto en educación. La hipótesis del artículo considera que el gasto educativo y el coeficiente de Gini educativo han tenido una incidencia positiva en la disminución de la desigualdad de los ingresos en el Perú. El diseño de la investigación es no experimental, longitudinal de tendencia. El periodo de estudio fue de 1998-2017, habiéndose probado los test estadísticos y econométricos. Las conclusiones a las que se arribaron fueron que el modelo econométrico empleado tiene un nivel interesante de explicación; las variables explicativas: gasto educativo del gobierno, el coeficiente de Gini educativo y el capital humano, así como las variables complementarias: desempleo, balanza de pagos, población, el valor agregado en los servicios, incidieron favorablemente en la distribución del Ingreso.

Impact of Credit on Education and Healthcare Spending in Rural Pakistan

It is to access that the microcredit has a positive impact on education and healthcare spending of the borrowed households is controversial in developing countries literature or not. This study reports evidence, from Pakistan for this debate, while utilising data from PPHS- 2010 (Pakistan Panel Household Survey). Propensity score matching (PSM) has been used to investigate the impact of household credit on healthcare and education spending by the poor. In addition to matching statistically identical borrowers with non-borrowers, the method controls for household pre-treatment assets and income. These may be correlated with unobservable factors affecting credit participation as well as outcomes of interest. The estimates from binary as well as multiple ordered treatment effect show insignificant impact of borrowing on education and significant and positive impact on healthcare spending. JEL Classification: D13, C14 Keyword: Matching; Household Credit; Per-capita Income; Education and Healthcare Spending

Intergenerational Conflict between Young and Old on Public Education Spending: A Revisit

The intergenerational conflict over public education allocation has remained to be a subject of contentious debate. As such, this study aimed to examine the impact of the elderly population and young population growth that could potentially affect educational spending within the context of Malaysia. This study will employ the Autoregressive Distributed Lag (ARDL) method to determine the intergenerational conflict on public education expenditure in Malaysia. The empirical finding from this study demonstrated the significant influence of both the elderly and young population on public education spending. Any increase in the young population was followed by a proportional increase in education expenditure. Meanwhile, the increase in the elderly population does not appear to reduce public education spending. This implied that there is intergenerational conflict which would put pressure on public education spending. The changes in population structure could bring implications as to how the public expenditure will be allocated. The evidence from this paper will further provide useful insight and policy recommendations to policymakers on how to improve education financing in the future.

FORMULASI RASIO KINERJA KEUANGAN PEMERINTAH DAERAH DI INDONESIA PERSPEKTIF MAQASHID SYARIAH

This study aims to formulate ratio to measure the financial performance of local governments in Indonesia with a maqashid sharia perspective. This research is qualitative research with an exploratory approach. The results show that there are eleven elements of the ratio that can be used in measuring the financial performance of local governments in Indonesia with the maqashid sharia perspective. Objective of Individual education are measured by the ratio of education spending, the ratio of planning and research spending, the ratio of spending on human resource development, and the ratio of communication and information spending. Objective of creating justice, it is measured by the ratio of financial flexibility, functional distribution ratio, and the ratio of interest-free products. Meanwhile, objective of public interest, it is measured by budget solvency ratio, financial independence ratio, local government transfer ratio, and investment and fixed asset ratio.

Assessment of the environmental effects of China's fertility policy: The impact from increasing numbers of children in households

In the dual context of the pursuit of carbon neutrality and the continued relaxation of the fertility policy in China, this study uses a panel data of the China Family Panel Studies (CFPS) from 2012 to 2018 to reveal the environmental performance brought about by the relaxation of the fertility policy. The article finds that an increase in the proportion of children in the household is accompanied by a decrease in the embodied carbon emissions (E-CO2) of the household, indicating the relaxation of the fertility policy is synergistic with the realization of the carbon neutrality. Furthermore, in terms of the influential mechanism, This paper confirms that the inhibitory effect of the rising proportion of children on E-CO2 is due to the constraint of lower household income. On the one hand, lower income expectations from raising more children make households consume less, which reduces household E-CO2. On the other hand, the negative effect of lower income on consumption is unevenly distributed to each category of consumption. Specifically, parents spend more on their children, such as increasing spending on education. However, the increase in education spending comes at the cost of a reduction in other aspects of consumption, which brings a more environmental-friendly consumption pattern. In addition, we find that having more children has a stronger effect on E-CO2 reductions for families in rural areas, families with only daughters and no sons and families with low-income. Therefore, it is necessary to focus on families in urban areas and with high-income to realize household E-CO2 reduction, thereby achieving carbon neutrality under the trend of larger families (more children). Specifically, the government should actively guide families to reduce non-essential and high‑carbon consumption and promote an environmentally friendly consumption structure.

Does the government expenditure on education and family income boost educational expansion? Lesson from panel FMOLS

One of the problems of education development in Indonesia is the slow distribution of education, especially in the regions. Understanding the relationship between government spending on education and family income helps improve education equity in the region and formulate appropriate education policies. The study examines the effects of government expenditure in education, family income, poverty, and control variables on the primary, junior, senior secondary of net enrollment ratio and means years of schooling. This study utilized secondary data from regencies/municipalities in Banten Province over the period from 2000 to 2019. The panel FMOLS model found that family income contributed significantly to increasing the education expansion as measured by net enrollment rate in primary, junior, senior high schools and mean years of schooling for all models. Poverty only affected the net enrollment rate for junior high school, senior high school, and mean years of schooling in the long term. However, the findings on the impact of education spending on educational expansion are ambiguous. Furthermore, it depended on the method utilized. This research contributes to providing local government policy input to improve education services through increasing family income, reducing poverty, and providing educational opportunities for the school-age population to obtain equal education services.

Government Educational Spending and Human Capital Development in ECOWAS Sub-Region: Implication For Sustainable Development

Abstract The critical need to create economic prosperity and ensure inclusive and equitable education and lifelong learning for all, especially in developing countries has been the motivation behind the various advocacies by the policymakers and other stakeholders in these countries to achieve the SDGs comes 2030. Meanwhile, ECOWAS sub region is characterized with the lowest human capital development alongside the highest rates of illiteracy in the world despite the continuous rise in government educational spending over the years. Against this backdrop, the role of government educational spending on human capital development in ECOWAS sub-region has been investigated with a view to driving one of the strategic goals of Sustainable Development- inclusive and equitable education and lifelong learning for all. In order to achieve this, annual data from 1990 to 2019 was utilized using a panel ARDL as a technique of estimation. The findings that emerged in this work are summarized as follows; the relationship between government educational spending and human capital development in ECOWAS sub region is more of a long run phenomenon. Therefore, government educational spending and human capital development have a positive and significant relationship in the long run. In the light of the above findings, this study therefore makes the following recommendations for the policymakers in ECOWAS sub region and by extension developing countries, any time the goal of these policymakers is inclusive and equitable lifelong learning via human capital development, the government at levels should embark on sustainable educational spending. In the same vein, these policymakers should be committed to funding of educational sector as stipulated by both the United Nations and the Abuja declaration of 2001, advocating for 26% of annual budget for educational sector in developing countries.

Efficacy of Educational Spending in India:an Ardl Approach

Education is the fundamental cornerstone in the economic and social development of any nation. It is argued as one of the basic factors which vindicates the gap between developed and underdeveloped nations. India, being a developing country, exhibits fragile spending hovering around 3 to 4 percent of total expenditure. Besides, centre as well as states jointly spent on an average 3 percent of Gross Domestic Product (GDP) during 2014-15 to 2018-19 (Economic Survey 2019-20). However, National Education Policy (NEP) 2020 recommends 6 percent of Gross Domestic Product (GDP) to be spent on education. The linkage between public spending and educational outcomes has been explored very well in the literature. However, such efforts are found mainly focussed towards developed countries. Pertinently, among the developing countries very sparse studies have been conducted in India. This paper plugs the gap by investigating the nexus between public spending and educational outcomes in the Indian context. The study concluded with the findings that spending does not prove fruitful in improving the gross enrollment rate at various levels both in the short run as well as long run..

Immigration vs. poverty: Causal impact on demand for redistribution in a survey experiment

We investigate how demand for both the financing and the provision of redistributive policies is affected by information about immigration and poverty. Information about immigration has a positive impact on desired tax progressivity among low-income respondents and a negative one among higher income earners. Information about poverty has no impact. On the provision side, middle- and high-income respondents increase desired public education expenditure in response to poverty, while low-income respondents reduce desired education spending in response to immigration. These heterogeneities are consistent with protectionist reactions to immigration and poverty.

Democracy, rural inequality, and education spending

Much research suggests democracies invest more in human capital formation than dictatorships. In particular, scholars have suggested that democracies outspend autocracies on education, due to electoral and interest group pressures. However, some democracies spend no more on education - and some spend much less - than autocracies. What explains this variation within democracies? The answer is the influence of landed agricultural elites. Urban industrial elites support human capital investment because it leads to higher rates of return even if wages increase. Yet greater education spending encourages out-migration from the countryside, reducing the supply and increasing the price of agricultural labor. Given the differential impact of education spending across economic sectors, the effect of democracy on education spending may be conditional on the power of landed elites. We test this argument in two ways. First, we run a series of time series cross-sectional regressions on data from 107 countries for the period 1970 to 2000. Second, we conduct a difference-in-difference analysis, comparing countries that democratize at high versus low levels of land inequality, for 73 countries for the same time period. Results confirm a negative relationship between the power of landed elites and investment in public education under democracy, adding important and novel insight into the sources of differences in public-goods spending and human capital investment both within across political regimes.

The composition of local government expenditure and income growth: the case of Sweden

ABSTRACT This paper analyses the relationship between the composition of local government expenditure and income growth rate at the local level. Based on a panel of municipality-level data for Sweden spanning the period 1996–2015, we find indications of a negative relative ‘growth effect’ of education spending compared with both perceived non-productive expenditure shares and childcare and infrastructure spending, both viewed as productive. However, the robustness of these results is challenged when considering spatial interactions, and the choice of panel construction to address reverse causality. To some extent the results are confined to the assumption that local fiscal policy is exogenous.

Promise not kept: universal primary education for all children in sub-Saharan Africa

PurposeThis article examines why Universal Primary Education (UPE) has shifted from being a developing country challenge more broadly in the last half of the 20th century to become largely a sub-Saharan Africa (SSA) challenge today. It discusses a number of national and education sector system-wide challenges that have constrained the implementation of UPE in SSA more so than in other developing regions.Design/methodology/approachThis article reviews the literature and policy documents on a wide range of developing country issues, and discusses why most SSA countries have faced unparalleled challenges in achieving UPE.FindingsSSA governments should take the opportunity offered by their post-pandemic “build back better” efforts to fundamentally reset education policies to address the key causes of this major development failure. The overarching objective must be to develop education systems that are more inclusive, equitable and responsive to national development needs by better serving the large population groups, parts of society and economic sectors that currently derive little benefit from public education spending. This article highlights the urgency and challenges associated with achieving this objective.Originality/valueAlthough the main responsibility lies with SSA governments, this paper stresses that the global community will be affected in many ways by how effectively this crisis is addressed. Therefore, this effort merits sustained global support including through more catalytic use of aid.

Nature versus Nurture in Social Mobility Under Private and Public Education Systems

This paper analyzes the roles of innate talent versus family background in shaping intergenerational mobility and social welfare under different education systems. We establish an overlapping-generations model in which the allocation of workforce between a high-paying skilled labor sector and a low-paying unskilled labor sector depends on talent, parental human capital, and educational resources, and the wage rate of skilled workers is governed by their average talent. Our model suggests that under the private education system, income inequality is inversely associated with social mobility, and the steady-state average talent of skilled labor declines as parents increase educational spending. The introduction of public education, which makes the allocation of workforce depend more on talent and less on family background, tends to increase both inequality and mobility and improve welfare under reasonable conditions. Our simulations show that if the government diverts public school funding to redistribution, the economy has lower inequality and mobility in the steady state. Moving from elitist to meritocratic systems yields lower inequality and greater mobility.

Effect of Female Politicians on Postprimary Education and Intergenerational Education Spending

This paper studies whether exposure to female politicians during adolescence affects postprimary education, including a longer-term intergenerational impact in India. Using close mixed-gender elections won by women as an instrument for the election of female legislators, I find that female politicians increase the likelihood of urban women completing higher secondary schooling. Further, exposure leads rural women to spend more on their children’s education years later, particularly in households with more girls, participate more in household decision making, and exhibit a decline in son preference. Given the pro-male bias in educational expenditures in rural households, the results underscore the importance of exposure to more gender-equal settings during adolescence in mitigating such biases.

Efficiency of public spending on human capital in Africa

Government spending on human capital continues to increase over the years. However, knowledge of the efficiency of such spending is limited. Using data from World Bank’s World Development Indicator and World Governance Indicator from 2006 to 2017 and Data Envelopment Analysis and DEA Bootstrapping models, the study examined the relative technical efficiencies of public spending on human capital and their correlates in Africa. The study found public spending on health and education in Africa to be inefficient. Efficiency was much higher in health spending than in educational spending. Factors such as institutional quality, economic growth, government expenditure, foreign direct investment, and trade openness were found to influence the efficiency of public spending on human capital. Government should put in place measures to stimulate trade, ensure institutional quality and growth of urbanization to help improve efficiency in public spending.

Performance Management of Primary Education Spending: Funding and Resource Availability

Performance Management of Primary Education Spending: Funding and Resource Availability

State Takeover of School Systems and Within-District Fiscal Equity

State takeovers of school districts typically involve dramatic changes to the workforce in the targeted school system and are often undertaken for the express purpose of improving a school system’s finances. However, little is known about how takeover affects education spending, particularly the distribution of funds across schools within districts. This has important implications for human resources because inequitable spending exacerbates teacher quality shortages for schools that serve marginalized students. We capitalize on a novel source of school-level education spending data for 2018–2019 to examine how takeover influences overall spending, equality of spending across schools within districts, and race-, ethnicity-, and class-based gaps in spending across schools. We do this for a national sample of 24 districts taken over between 2013 and 2019 matched to a set of untreated comparison districts with a high propensity for takeover. We find that state takeover is associated with higher levels of education spending, and that the greater funding promotes racial and ethnic fiscal equity but does not increase income-based school finance equity. Importantly, average increases in school spending are likely too small to substantially affect educational inequality. Therefore, takeover does not seem to be a sufficient mechanism for meaningfully mitigating within-district finance inequity.

Public redistributive policies in general equilibrium: An application to Greece

We develop a general equilibrium OLG model of a small open economy to quantify the aggregate and distributional implications of a wide menu of public redistributive policies in a unified context. Inequality is driven by unequal parental conditions in financial and human capital. The model is calibrated and solved using fiscal data from Greece. Our aim is to search for public policies, targeted and non-targeted, that can reduce income inequality without damaging the macroeconomy and without worsening the public finances. Pareto-improving reforms that also reduce inequality include an increase in public education spending provided to all and an increase in the inheritance tax rate on financial wealth. At the other end, we identify reforms that may reduce inequality but make everybody worse off. Regarding cases in between, a switch to a fully funded public pension system is good for everybody although it is the rich-born that benefit more by moving to a more efficient macroeconomy.

Which Demographic Quintile Benefits from Public Health Expenditure in Nigeria: A Marginal Benefit Analysis

Policymakers concur that social investments are crucial, and that inequality must be decreased to accomplish long-term poverty reduction. Nigeria, one of the 20 poorest countries in the world, has a severely unequal society at the moment, with over 80% of the people living in deep, severe, and pervasive poverty, with an estimated 5% of the population possessing 85% of the country’s resources. This article’s focus is on how benefits are dispersed among various demographic groups. Previous data collection does not reflect the present realities of this topic. For this analysis, in southeast Nigeria, data sets from government agencies and for-profit service providers were utilized. The benefits of distinct quintiles were estimated using a marginal benefit incidence analysis. The results show that governmental spending in Nigeria is not pro-poor and that the country’s southeast governments supported spending for the wealthy rather than the poor. The results show, among other things, that investment in health is not well directed; benefits from primary education and primary healthcare appear to be disproportionately dispersed to the upper class in the states studied, as they are throughout Nigeria. The paper serves as an example of the value of benefit incidence analysis (BIA). This article recommends effective targeted discretionary spending to lower systemic poverty and inequality. If education and health spending were more pro-poor, better education and health outcomes, strong governance, high per capita income, and wider access to information would all be more likely.

Education Influence in Human Resource Development

In India, mainstream of population that is almost 64% is between the ages of 15 and 64 and nearly 31% is under 14 years of age. So MHRD focuses on the education of children, youth, skill and technical development of human resource. Education is basic human right and also a social capital. In the age of globalization, the importance of education is increasing day by day. Hence the government of India increase educational spending but that is not sufficient so government should spend much on education. During 1950-51 to 2019-2020 the number of Universities, College, student’s enrolments increased, moreover in the same period India’s Male/Female literacy rates have been increasing trend. Education influence in human resource development analyzed in this paper.