Download or read book The Political Economy of Public Spending on Education Inequality and Growth written by Mark Gradstein and published by World Bank Publications. This book was released on 2003 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public provision of education has often been perceived as universal and egalitarian, but in reality it is not. Political pressure typically results in incidence bias in favor of the rich. The author argues that the bias in political influence resulting from extreme income inequalities is particularly likely to generate an incidence bias, which we call social exclusion. This may then lead to a feedback mechanism whereby inequality in the incidence of public spending on education breeds higher income inequality, thus generating multiple equilibria: with social exclusion and high inequality; and with social inclusion and relatively low inequality. The author also shows that the latter equilibrium leads to higher long-run growth than the former. An extension of the basic model reveals that spillover effects among members of social groups differentiated by race or ethnicity may reinforce the support for social exclusion.
Download or read book The Political Economy of Public Spending on Education Inequality and Growth written by Gradstein and published by . This book was released on 2013 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Political Economy of Public Spending on Education Inequality and Growth written by Mark Gradstein and published by . This book was released on 2016 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: Public provision of education has often been perceived as universal and egalitarian, but in reality it is not. Political pressure typically results in incidence bias in favor of the rich. Gradstein argues that the bias in political influence resulting from extreme income inequalities is particularly likely to generate an incidence bias, which we call social exclusion. This may then lead to a feedback mechanism whereby inequality in the incidence of public spending on education breeds higher income inequality, thus generating multiple equilibria: with social exclusion and high inequality; and with social inclusion and relatively low inequality. The author also shows that the latter equilibrium leads to higher long-run growth than the former. An extension of the basic model reveals that spillover effects among members of social groups differentiated by race or ethnicity may reinforce the support for social exclusion.This paper - a product of Public Services, Development Research Group - is part of a larger effort in the group to understand the causes and the consequences of incidence biases in public spending.
Download or read book The Political Economy of Education written by Mark Gradstein and published by MIT Press. This book was released on 2004-10-22 with total page 192 pages. Available in PDF, EPUB and Kindle. Book excerpt: A theoretical framework for analyzing the complex relationship of education, growth, and income distribution. The dominant role played by the state in the financing, regulation, and provision of primary and secondary education reflects the widely-held belief that education is necessary for personal and societal well-being. The economic organization of education depends on political as well as market mechanisms to resolve issues that arise because of contrasting views on such matters as income inequality, social mobility, and diversity. This book provides the theoretical framework necessary for understanding the political economy of education—the complex relationship of education, economic growth, and income distribution—and for formulating effective policies to improve the financing and provision of education. The relatively simple models developed illustrate the use of analytical tools for understanding central policy issues. After offering a historical overview of the development of public education and a review of current econometric evidence on education, growth, and income distribution, the authors lay the theoretical groundwork for the main body of analysis. First they develop a basic static model of how political decisions determine education spending; then they extend this model dynamically. Applying this framework to a comparison of education financing under different regimes, the authors explore fiscal decentralization; individual choice between public and private schooling, including the use of education vouchers to combine public financing of education with private provision; and the social dimension of education—its role in state-building, the traditional "melting pot" that promotes cohesion in a culturally diverse society.
Download or read book The Political Economy of Education written by Mark Gradstein and published by Mit Press. This book was released on 2005 with total page 169 pages. Available in PDF, EPUB and Kindle. Book excerpt: The dominant role played by the state in the financing, regulation, and provision of primary and secondary education reflects the widely-held belief that education is necessary for personal and societal well-being. The economic organization of education depends on political as well as market mechanisms to resolve issues that arise because of contrasting views on such matters as income inequality, social mobility, and diversity. This book provides the theoretical framework necessary for understanding the political economy of education -- the complex relationship of education, economic growth, and income distribution -- and for formulating effective policies to improve the financing and provision of education. The relatively simple models developed illustrate the use of analytical tools for understanding central policy issues.After offering a historical overview of the development of public education and a review of current econometric evidence on education, growth, and income distribution, the authors lay the theoretical groundwork for the main body of analysis. First they develop a basic static model of how political decisions determine education spending; then they extend this model dynamically. Applying this framework to a comparison of education financing under different regimes, the authors explore fiscal decentralization; individual choice between public and private schooling, including the use of education vouchers to combine public financing of education with private provision; and the social dimension of education -- its role in state-building, the traditional "melting pot" that promotes cohesion in a culturally diverse society.
Download or read book Skills and Inequality written by Marius R. Busemeyer and published by Cambridge University Press. This book was released on 2015 with total page 327 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book argues that critical choices about the institutional design of education systems in the post-war period have long-term implications for social inequality.
Download or read book Inequality and Growth written by Theo S. Eicher and published by MIT Press. This book was released on 2007-01-26 with total page 343 pages. Available in PDF, EPUB and Kindle. Book excerpt: Even minute increases in a country's growth rate can result in dramatic changes in living standards over just one generation. The benefits of growth, however, may not be shared equally. Some may gain less than others, and a fraction of the population may actually be disadvantaged. Recent economic research has found both positive and negative relationships between growth and inequality across nations. The questions raised by these results include: What is the impact on inequality of policies designed to foster growth? Does inequality by itself facilitate or detract from economic growth, and does it amplify or diminish policy effectiveness? This book provides a forum for economists to examine the theoretical, empirical, and policy issues involved in the relationship between growth and inequality. The aim is to develop a framework for determining the role of public policy in enhancing both growth and equality. The diverse range of topics, examined in both developed and developing countries, includes natural resources, taxation, fertility, redistribution, technological change, transition, labor markets, and education. A theme common to all the essays is the importance of education in reducing inequality and increasing growth.
Download or read book Demographic Structure and the Political Economy of Public Education written by James M. Poterba and published by . This book was released on 1996 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This papers examines the relationship between demographic structure and the level of government spending on K-12 education. Panel data for the U.S. states over the 1960-1990 period suggests that an increase in the fraction of elderly residents in a jurisdiction is associated with a significant reduction in per child educational spending. This reduction is particularly large when the elderly residents and the school-age population are from different racial groups. Variation in the size of the school-age population does not result in proportionate changes in education spending, so students in states with larger school-age populations receive lower per-student spending than those in states with smaller numbers of potential students. These results provide support for models of generational competition in the allocation of public sector resources. They also suggest that the effect of cohort size on government-mediated transfers must be considered in analyzing how cohort size affects economic well-being.
Download or read book The Political Economy of Publicly provided Goods written by Katrina Lauren Kosec and published by Stanford University. This book was released on 2011 with total page 202 pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters which explore various aspects of the political economy of publicly-provided goods. I shed light on why governments do or do not invest in goods of different types, and also how government versus private provision affects consumers. What follows are three empirical analyses testing the implications of competing theoretical models. My first chapter addresses the question, what drives governments with similar revenues to publicly provide very different amounts of goods for which private substitutes are available? Key examples are education and health care. I compare spending by Brazilian municipalities on pre-primary education--a good that is also provided privately--with spending on public infrastructure like parks and roads, which lacks private substitutes. I find that municipalities with higher median income and more inequality are less likely to allocate revenue to education or to expand pre-primary enrollment. They are more likely to allocate revenue to public infrastructure. This seems to occur for two reasons. In rich and unequal municipalities, fewer total people support public education spending (the collective choice channel), and also, any given poor person wanting public education has less influence over policymakers there (the political power channel). My second chapter addresses the question, can private sector participation (PSP) in the urban piped water sector improve child health? A fixed effects analysis suggests that the introduction of PSP decreases diarrhea among under-five children by between 2.2 and 2.6 percentage points, or 14-16%. An instrumental variables analysis that uses variation in the share of the world water market controlled by former colonizing countries suggests that the effects are twice as large. The difference between the OLS and the IV results can be explained by the fact that PSP is more likely when the water sector is distressed and causing health problems. Importantly, PSP appears to benefit the health of children from the poorest households the most. It also leads to higher rates of reliance on piped water as the primary water source, which is a likely channel explaining child health improvements. My third chapter, joint with John Hatfield, examines how competition between governments affects economic growth. We find that doubling the number of local governments in a metropolitan area increases the income growth rate over 1969-2006 by 18%, which implies an approximate $3900 difference in 2006 income. Decomposing this effect, we find that 60% stems from inter-jurisdictional competition changing the composition of the workforce, while 40% comes from making existing workers more productive. The results support a formal model showing that competition for capital drives local governments to provide productive public goods at levels which maximize economic growth (Hatfield 2010).
Download or read book Making Social Spending Work written by Peter H. Lindert and published by Cambridge University Press. This book was released on 2021-04-08 with total page 437 pages. Available in PDF, EPUB and Kindle. Book excerpt: How does social spending relate to economic growth and which countries have got this right and wrong? Peter Lindert examines the experience of countries across the globe to reveal what has worked, what needs changing, and who the winners and losers are under different systems. He traces the development of public education, health care, pensions, and welfare provision, and addresses key questions around intergenerational inequality and fiscal redistribution, the returns to investment in human capital, how to deal with an aging population, whether migration is a cost or a benefit, and how social spending differs in autocracies and democracies. The book shows that what we need to do above all is to invest more in the young from cradle to career, and shift the burden of paying for social insurance away from the workplace and to society as a whole.
Download or read book Reallocating Public Spending to Reduce Income Inequality Can It Work written by Djeneba Doumbia and published by International Monetary Fund. This book was released on 2019-09-06 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Can a government reduce income inequality by changing the composition of public spending while keeping the total level of expenditure fixed? Using newly assembled data on spending composition for 83 countries across all income groups, this paper shows that reallocating spending toward social protection and infrastructure is associated with reduced income inequality, particularly when it is financed through cuts in defense spending. However, the political and security situation matters. The analysis does not find evidence that lowering defense spending to finance infrastructure and social outlays improves income distribution in countries with weak institutions and at higher risk of conflict. Reallocating social protection and infrastructure spending towards other types of spending tends to increase income inequality. Accounting for the long-term impact of health spending, and particularly education spending, helps to better capture the equalizing effects of these expenditures. The paper includes a discussion of the implications of the findings for Indonesia, a major emerging market where income inequality is at the center of policy issues.
Download or read book Educational Expansion Evidence and Interpretation written by Mark Gradstein and published by World Bank Publications. This book was released on 2003 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Links Between Growth Inequality and Poverty A Survey written by Ms. Valerie Cerra and published by International Monetary Fund. This book was released on 2021-03-12 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: Is there a tradeoff between raising growth and reducing inequality and poverty? This paper reviews the theoretical and empirical literature on the complex links between growth, inequality, and poverty, with causation going in both directions. The evidence suggests that growth can be effective in reducing poverty, but its impact on inequality is ambiguous and depends on the underlying sources of growth. The impact of poverty and inequality on growth is likewise ambiguous, as several channels mediate the relationship. But most plausible mechanisms suggest that poverty and inequality reduce growth, at least in the long run. Policies play a role in shaping these relationships and those designed to improve equality of opportunity can simultaneously improve inclusiveness and growth.
Download or read book States and Schools written by W. Norton Grubb and published by . This book was released on 1974 with total page 248 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Education and the State written by E. G. West and published by London : Institute of Economic Affairs. This book was released on 1970 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Political Economy of Education written by Martin Carnoy and published by Cambridge University Press. This book was released on 2024-02-15 with total page 563 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Political Economy of Education provides academically rigorous yet clear explanations of the economics and politics driving today's educational systems and how economists analyze them. The book covers a host of topics central to teaching about education and crucial to educational policy. These include how to use the tools of economic and political theory to take critical measure of education's role in social mobility and economic growth, whether good teachers can overcome social class and race achievement gaps, the effectiveness of early childhood and vocational education, and debates on school accountability and whether increasing spending on schooling improves quality. The book also explores worldwide changes in higher education, especially massification and increased stratification and privatization. Written for upper undergraduate and graduate students in economics, public policy, and education and packed with real-world examples, this is an essential text for anyone interested in gaining fresh and international perspectives on education.
Download or read book The Political Economy of Publicly provided Goods written by Katrina Lauren Kosec and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This dissertation consists of three chapters which explore various aspects of the political economy of publicly-provided goods. I shed light on why governments do or do not invest in goods of different types, and also how government versus private provision affects consumers. What follows are three empirical analyses testing the implications of competing theoretical models. My first chapter addresses the question, what drives governments with similar revenues to publicly provide very different amounts of goods for which private substitutes are available? Key examples are education and health care. I compare spending by Brazilian municipalities on pre-primary education--a good that is also provided privately--with spending on public infrastructure like parks and roads, which lacks private substitutes. I find that municipalities with higher median income and more inequality are less likely to allocate revenue to education or to expand pre-primary enrollment. They are more likely to allocate revenue to public infrastructure. This seems to occur for two reasons. In rich and unequal municipalities, fewer total people support public education spending (the collective choice channel), and also, any given poor person wanting public education has less influence over policymakers there (the political power channel). My second chapter addresses the question, can private sector participation (PSP) in the urban piped water sector improve child health? A fixed effects analysis suggests that the introduction of PSP decreases diarrhea among under-five children by between 2.2 and 2.6 percentage points, or 14-16%. An instrumental variables analysis that uses variation in the share of the world water market controlled by former colonizing countries suggests that the effects are twice as large. The difference between the OLS and the IV results can be explained by the fact that PSP is more likely when the water sector is distressed and causing health problems. Importantly, PSP appears to benefit the health of children from the poorest households the most. It also leads to higher rates of reliance on piped water as the primary water source, which is a likely channel explaining child health improvements. My third chapter, joint with John Hatfield, examines how competition between governments affects economic growth. We find that doubling the number of local governments in a metropolitan area increases the income growth rate over 1969-2006 by 18%, which implies an approximate $3900 difference in 2006 income. Decomposing this effect, we find that 60% stems from inter-jurisdictional competition changing the composition of the workforce, while 40% comes from making existing workers more productive. The results support a formal model showing that competition for capital drives local governments to provide productive public goods at levels which maximize economic growth (Hatfield 2010).
