Individual preferences for public education spending: Does personal income matter?

Gioacchino, Debora Di; Sabani, Laura; Tedeschi, Simone

doi:10.1016/j.econmod.2019.01.007

Cited by 14 publications

(5 citation statements)

References 29 publications

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“…14 We justify this assumption by referring to empirical evidence. By working with OECD survey data, Di Gioacchino et al (2019) find that the correlation between individual income and human capital is positive but below 0.5. interests are not only between rich and poor families over the size of the public education budget, but also between highly educated families who enrol their children in university and those who do not. In this framework, we explicitly model partisan preferences for public spending in basic and tertiary education and investigate the impact of countries' features such as income inequality and the intergenerational persistence in education on these preferences.…”

Section: Related Literaturementioning

confidence: 99%

Intergenerational Upward (Im)mobility and Political Support of Public Education Spending

2021

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This paper provides a simple model of hierarchical education to study the political determination of public education spending and its allocation between different tiers of education. The model integrates private education decisions by allowing parents, who are differentiated according to income and human capital, to top up public expenditures with private transfers. We identify four groups of households with conflicting preferences over the the size of the public education budget and its allocation. In equilibrium, public education budget, private expenditures and expenditure allocation among different tiers of education, depend on which group of households is in power and on country-specific features such as income inequality and intergenerational persistence in education. By running a cluster analysis on 32 OECD countries, we seek to establish if distinctive ‘education regimes’, akin to those identified in the theoretical analysis, could be discerned. Our main finding is that a high intergenerational persistence in education might foster the establishment of education regimes in which the size and the allocation of the public budget among different tiers of education prevent a stable and significant increase of the population graduation rate, thus plunging the country in a ‘low education’ trap.

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Section: Related Literaturementioning

confidence: 99%

Intergenerational Upward (Im)mobility and Political Support of Public Education Spending

2021

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“…Finally, in our opinion, there should be some correlation between the formation of GRP and the quality of human potential, including its the educational level [12,13]. To identify the presence or absence of such connection we considered the dynamics of a pair of indicators 'GRP per capitanumber of students in higher education institutions', as these data are the most easily available from the statistical information (Fig.…”

Section: Grp Per Capita ↔ Number Of Students In Higher Education Institutionsmentioning

confidence: 99%

Human Resource Development Level and Its Interconnection with Regional Economic Situation

Shishkina¹,

Sabetova²,

Lyubavskiy³

2020

Proceedings of the International Conference on Policies and Economics Measures for Agricultural Development (AgroDevEco 2020)

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In this paper, we consider the components that characterize the essence of human potential and a system of indicators reflecting the influence of the level of its development on the state and effectiveness of the socio-economic system of the region. Based on the analysis of empirical data for the Voronezh region, the assumption about the mutual influence of the level of human development and the economic results of the functioning of regional systems is verified. For this purpose, the authors used the characteristic of such pairs of indicators as GRP per capitathe number of economically active population; GRP per capitaincome per capita; GRP per employed in the economy ↔ nominal wage; average life expectancy ↔ number of doctors per 10,000 population; life expectancy ↔ per capita income; GRP per capita ↔ number of students in higher education organizations. The authors concluded that this assumption is in place, but not to the extent that was originally thought. Keywordswages, socio-economic development region the level of human potential, human potential quality, indicators, GRP per capita, number of econbomically active population.

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“…There are other studies in the literature in which the support for public education depends on individual preferential differences for types of education, such as bilingual versus monolingual education, inclusion of religious education, and academic versus vocational education (Alesina et al, 1999). Di Gioacchino et al (2019) empirically show that individual preferences for basic public education expenditure are significantly affected by individual characteristics, measured by parents' educational attainment, political orientation and involvement, age, parent status, gender, and being in the education sector. As a result, personal attributes toward and expectations from child education appear to be the main determinants in the political process of deciding on the level of public investment in education.…”

Section: Introductionmentioning

confidence: 98%

Public Education Investment, Economic Growth and Welfare: A Political Economy Analysis with Preference Heterogeneity

Doru

2024

Fiscaoeconomia

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This study examines the politics of public education policy and its impact on economic growth and welfare under intergenerational altruism. The study considers an endogenous growth model with altruistic overlapping generations. Due to its significant role in promoting long-term economic expansion, we consider investment in public education to be an effective tool of productive government intervention. Nonetheless, public educational investment has been the subject of political disputes owing to its inherent intergenerational redistributive implications. Backed by the tendency of democratically elected governments to maintain their political power, the preferences of some particular individuals or group of individuals become more dominant in the political process of determining the level of public investment in education. In particular, governments are more concerned with the preferences of the median voter, or the current generation at large, because they, as electors, have the ability to determine the next government. This reality leads governments to exhibit a bias toward the desires of these people. As a result, such political considerations divert the economy from its optimal path of economic growth and reduce the welfare of future generations. This effect becomes more pronounced when individuals with lower levels of altruism toward their offspring assume a more influential position in the political decision-making process over the allocation of public funds for education. Our theoretical analyses demonstrate the implications for economic growth and welfare resulting from policy decisions made by democratically elected governments with inherent biases, as opposed to decisions made by an unbiased social planner.

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Individual preferences for public education spending: Does personal income matter?

Cited by 14 publications

References 29 publications

Intergenerational Upward (Im)mobility and Political Support of Public Education Spending

Intergenerational Upward (Im)mobility and Political Support of Public Education Spending

Human Resource Development Level and Its Interconnection with Regional Economic Situation

Public Education Investment, Economic Growth and Welfare: A Political Economy Analysis with Preference Heterogeneity

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