Falch, Torberg and Fischer, Justina AV (2011): Welfare state generosity and student performance: Evidence from international student tests.
Download (482kB) | Preview
Student achievement has been identified as important contributor to economic growth. This paper investigates the relationship between redistributive government activities and investment in human capital measured by student performance in international comparative tests in Mathematics and Science during the period 1980 to 2003. In fixed effects panel models, government consumption, government social expenditures, and the progressivity of the income tax system have negative effects on student achievement. The results are robust to a variety of model specifications, including models that condition on educational expenditures. Our best estimate indicates that increased government size by 10 percent reduces student achievement by 0.1 standard deviations
|Item Type:||MPRA Paper|
|Original Title:||Welfare state generosity and student performance: Evidence from international student tests|
|Keywords:||Student achievement; welfare state; government size; tax system; panel data; international tests|
|Subjects:||I - Health, Education, and Welfare > I2 - Education and Research Institutions
H - Public Economics > H2 - Taxation, Subsidies, and Revenue
C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models
|Depositing User:||Justina AV Fischer|
|Date Deposited:||08. Dec 2011 18:29|
|Last Modified:||17. Feb 2013 12:05|
Agell, J., H. Ohlsson and P. S. Thoursie (2006): ”Growth effects of government expenditure and taxation in rich countries: A comment”. European Economic Review 50, 211-218.
Andersson, F. and K. A. Konrad (2003): “Human capital investment and globalization in extortionary states”. Journal of Public Economics 87, 1539-1555.
Barro, R. J., and J.-W. Lee (2001a): “Schooling quality in a cross-section of countries.” Economica 68, 465-488.
Barro, R. J., and J.-W. Lee (2001b): “International data on educational attainment: updates and implications.” Oxford Economic Papers 53, 541-563.
Becker, G.S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education. Chicago, University of Chicago Press.
Behrman, J. R., S. W. Parker, and P. E. Todd (2009): “Medium-term impact of the Oportunidades conditional cash transfer program on rural youth in Mexico”. in S. Klasen and F. Nowak-Lehmann (eds), Poverty, Inequality and Policy in Latin America, Cambridge , MA: MIT Press.
Bergh, A., and M Karlsson (2010): “Government size and growth: Accounting for economic freedom and globalization”. Public Choice 142, 195-213.
Bjørnskov, C., Dreher, A. and Fischer, JAV (2007): "The bigger the better? Evidence of the effect of government size on life satisfaction around the world". Public Choice 127(3), 267-292.
Bjørnskov, C., Dreher, A. and Fischer, JAV, (2008). "Cross-country determinants of life satisfaction: exploring different determinants across groups in society". Social Choice and Welfare 30(1), 119-173.
Eaton, J. and H. Rosen (1980): "Taxation, human capital and uncertainty," American Economic Review 70, 705-715.
Ehrlich, I., and J. Kim (2007): "Social security and demographic trends: Theory and evidence from the international experience", Review of Economic Dynamics 10, 55-77.
Ehrlich, I. and J. G. Zhong (1998): “Social security and the real economy: An inquiry into some neglected issues”. American Economic Review 88, 151-157.
Fossen, F. M. and D. Glocker (2011): “Expected future earnings, taxation, and university enrollment”. International Tax and Public Finance 16, 688-723.
Fölster, S. and M. Henrekson (2001): “Growth effects of government expenditure and taxation in rich countries”. European Economic Review 45, 1501-1520.
Glomm, G., and B. Ravikumar (1992): “Public versus private investment in human capital: Endogenous growth and income inequality”. Journal of Political Economy 100, 818-834.
Gwartney, J. and R. Lawson. (2002), Economic Freedom of the World: 2002 Annual Report.Vancouver: Fraser Institute.
Hamilton, J. H. (1987): ”Optimal wage and income taxation with wage uncertainty”. International Economic Review 28, 373-388.
Hanushek, E. A. and D. D. Kimko (2000): “Schooling, labor-force quality, and the growth of nations”. American Economic Review 90, 1184-1208.
Hanushek, E. A. and J. A. Luque (2003): “Efficiency and equity in schools around the world”. Economics of Education Review 22, 481-502.
Hanushek, E. A. and L. Wössmann (2008): “The role of school improvement in economic development”. Journal of Economic Literature 46, 607-668.
Hanushek, E. A. and L. Wössmann (2009): “Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation”. NBER Working Paper 14633.
Hogan, V. and I. Walker (2007): “Education choice under uncertainty: Implications for public policy”. Labour Economics 14, 894-912.
Jacobs, B. (2007): “Real options and human capital investment”. Labour Economics 14, 913-925.
Jamison, E. A., D. T. Jamison and E. A. Hanushek (2007): “The effects of education quality on income growth and mortality decline”. Economics of Education Review 26, 771-788.
Kneller, R., M. Bleaney and N. Gemmell (1999): “Fiscal policy and growth: Evidence from OECD countries”: Journal of Public Economics, 74, 171-190.
Konrad, K. A. and A. Spadaro (2006): “Education, redistribution taxation and confidence”. Journal of Public Economics 90, 171-188.
Laibson, D. (1997): “Golden eggs and hyperbolic discounting”. Quarterly Journal of Economics 112, 443-477.
Lee, J.-W., and R. J. Barro (1997): “Schooling Quality in a Cross-Section of Countries” Economica 68, 465-488. Data on http://www.nber.org/pub/barro.lee/
Levhari, D. and Y. Weiss (1974): "The effect of risk on investment in human capital". American Economic Review 64, 950-963.
O’Donoghue, T., and M. Rabin (1999): “Doing it now or later”. American Economic Review 89, 103-124.
OECD (2007): “$ocial €xpenditure 1980-2003: Interpretative Guide of SOCX”, Paris: OECD 2007.
Ponce, J., and A. S. Bedi (2010): “The impact of a cash transfer program on cognitive achievement: The Bono de Desarrolle Humano of Equador”. Economics of Education Review 29, 116-125.
Postlethwaite, T. N., and D. E. Wiley (1992): “The IEA study of science II: Science achievement in twenty-three countries”. Pegamon Press, New York
Poutvaara, P. (2007): “Social security incentives, human capital investment and mobility of labor”. Journal of Public Economics 91, 1299-1325.
Rawlings, L. B., and G. M. Rubio (2005): “Evaluating the impact of conditional cash transfer programs”. The World Bank Research Observer 20, 29-55.
Romero-Avila, D., and R. Strauch (2008): “Public finances and long-term growth in Europe: Evidence from a panel analysis”. European Journal of Political Economy 24, 172-191.
Sinn, H.-W. (1995): “A Theory of the Welfare State”. Scandinavian Journal of Economics 97, 495- 526.
Travers, K. J., and I. Westbury, eds. (1989): “The IEA Study of Mathematics I: Analysis of Mathematics Curricula”. Pergamon Press, New York.
Warm, T.A. (1989). “Weighted Maximum Likelihood Estimation of Ability in Item Response Theory”. Psychometrika, 54, 427-450.
Wössmann, L. (2003): “Schooling Resources, Educational Institutions and Student Performance: the International Evidence”. Oxford Bulletin of Economics & Statistics 65, 117-170.
Zhang, J. and J. Zhang (2004): “How does social security affect economic growth? Evidence from cross-country data”. Journal of Population Economics 17, 473-500.