EconPapers    
Economics at your fingertips  
 

An empirical inquiry into the determinants of public education spending in Europe

Catalin Dragomirescu-Gaina

IZA Journal of European Labor Studies, 2015, vol. 4, issue 1, 1-24

Abstract: This paper makes two important contributions. Firstly, it uncovers some of the main economic determinants driving the dynamics of public education spending in Europe. Drawing mainly on the insights provided by Baumol’s cost theory, the baseline specification uses unit labour costs and real GDP per capita as its main determinants. Some important institutional rigidities are also highlighted. The results confirm the fast relative increase in education costs, exposing the long-term affordability challenge of public education investment. Secondly, by including a policy objective and translating the empirical specification into a decision rule, the paper touches on some less mentioned determinants, such as policy commitment. Unfortunately, there is only weak overall evidence that public education spending would increase in response to a lack of progress in the policy objective. Finally, policy implications are discussed. JEL: D78, H41, H52, I22 Copyright Dragomirescu-Gaina. 2015

Keywords: Education spending; Baumol cost disease; Policy commitment (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1186/s40174-015-0049-7 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:spr:izaels:v:4:y:2015:i:1:p:1-24:10.1186/s40174-015-0049-7

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40174

DOI: 10.1186/s40174-015-0049-7

Access Statistics for this article

IZA Journal of European Labor Studies is currently edited by Sara de la Rica, Alan Barrett and Martin Kahanec

More articles in IZA Journal of European Labor Studies from Springer, Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA)
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-02-23
Handle: RePEc:spr:izaels:v:4:y:2015:i:1:p:1-24:10.1186/s40174-015-0049-7