The Effect of National Expenditure in Education on Academic Performance and their Mechanisms

María Orduz Perdomo ()
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María Orduz Perdomo: Universidad de los Andes

Chapter 04 in Investigaciones de Economía de la Educación, 2018, vol. 13, pp 71-94 from Asociación de Economía de la Educación

Abstract: Abstract Taking advantage of a Colombian reform of the educational system as a quasi natural experiment, this article attempts to find the effect and the mechanisms that central government's spending on education has on academic performance. The reform generated an exogenous change in the amount of public school spending that each municipalities received from de central government for education. I used the variation of public school expending and the results of the standardized test Saber11 between 2004 and 2013 to find the causal effect of national expenditure on education in academic results. Using an instrumental variable model, the results show that an increase in transfers per student, during his academic life, of around 10% generates an improvement of 0.1 standard deviations in the test score at national level. I found that the students per teacher ratio is a relevant mechanism to explain this effect.

Date: 2018
ISBN: 978-84-949813-2-6
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