Public expenditure on education and skill formation: are there simple rules to maximise skills?

Rossana Patron () and Marcel Vaillant
Additional contact information
Rossana Patron: Universidad de la Republica

Chapter 23 in Investigaciones de Economía de la Educación, 2011, vol. 6, pp 387-397 from Asociación de Economía de la Educación

Abstract: The ratio of skill to unskilled labour stocks in the economy is widely acknowledged to have an important role for development. Can education policy do anything to affect the evolution of this ratio? This paper shows that it can, and it also shows that the actual effect of education policy depends on the allocation rule of the budget across educational levels. The consideration of a stylised hierarchical education model allows us to develop analytical conditions under which the allocation rule favours the accumulation of skills. The analysis has implication for policy makers in developing countries, where skill formation is much needed, as it shows that observed allocation rules usually violate the maximisation condition by the assignment of higher than optimal resources to higher education.

Keywords: education budget; endowment growth (search for similar items in EconPapers)
JEL-codes: I21 I22 I28 (search for similar items in EconPapers)
Date: 2011
ISBN: 978-84-695-0585-4
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://repec.economicsofeducation.com/2011malaga/06-23.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to repec.economicsofeducation.com:80 (No such host is known. )

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:aec:ieed06:06-23

Access Statistics for this chapter

More chapters in Investigaciones de Economía de la Educación volume 6 from Asociación de Economía de la Educación Contact information at EDIRC.
Bibliographic data for series maintained by Domingo P. Ximénez-de-Embún ().