Improving the Efficiency and Equity of Public Education Spending: The Case of Moldova

Hui Jin, La-Bhus Jirasavetakul and Baoping Shang

No 2019/042, IMF Working Papers from International Monetary Fund

Abstract: This paper, using Moldova as an example, presents a systematic approach to assess the efficiency and equity of public education spending, identify sources of inefficiencies and inequality, and formulate potential reform options. The analytical framework combines international benchmarking with country-specific analysis—such as microeconomic analysis based on household survey data—and can provide important insights into diagnosing and reforming education systems. The analysis finds significant scope to improve both efficiency and equity of the education sector in Moldova. Potential reform measures include further consolidating the oversized school network, reducing overstaffing, and better targeting government subsidies. The current remuneration policy could also be improved to attract high quality teachers and incentivize performance.

Keywords: WP; public education; labor market; wage level; IMF staff calculation; public expenditure; wage premium; public education spending; spending efficiency; inequality; education reform; public spending; wage bill; Mincer wage regression; private sector; base pay; wage deficit; reservation wage; resource allocation; wage spending; pay grade; Education spending; Wages; Eastern Europe; Middle East; North Africa; Sub-Saharan Africa (search for similar items in EconPapers)
Pages: 39
Date: 2019-02-26
New Economics Papers: this item is included in nep-edu and nep-tra
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Citations: View citations in EconPapers (1)

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