EconPapers    
Economics at your fingertips  
 

Estimation of drivers of public education expenditure: Baumol’s effect revisited

Manabu Nose ()

International Tax and Public Finance, 2017, vol. 24, issue 3, 512-535

Abstract: Abstract This paper analyzes drivers of rising per-pupil public education spending, including Baumol’s “cost disease” effect. Empirical analyses using a large dataset of advanced and developing economies show that the contribution of Baumol’s effect was much smaller than implied by theory. Rather, the increase in per-pupil spending reflects rising wage premiums paid for teachers in excess of market wages, especially in developing countries. The strong wage premium effect suggests that institutional characteristics that govern teachers’ wage-setting are key determinants of education expenditure.

Keywords: Public education expenditure; Baumol’s effect; Wage premium (search for similar items in EconPapers)
JEL-codes: H52 I21 I25 I28 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10797-016-9410-7 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Estimation of Drivers of Public Education Expenditure; Baumol’s Effect Revisited (2015) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9410-7

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2019-01-10
Handle: RePEc:kap:itaxpf:v:24:y:2017:i:3:d:10.1007_s10797-016-9410-7