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Demographic Change and Public Education Spending a Conflict between Young and Old?

Ueli Grob and Stefan Wolter
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Ueli Grob: University of Bern

No 8, Economics of Education Working Paper Series from University of Zurich, Department of Business Administration (IBW)

Abstract: Demographic change in industrial countries will influence educational spending in potentially two ways. On the one hand, the decline in the number of school-age children should alleviate the financial pressure. On the other hand, the theoretical/empirical literature has established that the concomitantly increasing proportion of elderly in the population can influence the propensity of politicians to spend on education. Using a panel of the Swiss Cantons for the period from 1990 to 2002, we find that the education system has exhibited little elasticity in adjusting to changes in the school-age population, and that the share of the elderly population has a significantly negative influence on the willingness to spend on public education.

Keywords: public finance; education finance; demographics; panel estimates; Switzerland (search for similar items in EconPapers)
JEL-codes: H72 I22 J18 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2006-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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http://repec.business.uzh.ch/RePEc/iso/leadinghouse/0008_lhwpaper.pdf (application/pdf)

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Working Paper: Demographic Change and Public Education Spending: A Conflict between Young and Old? (2005) Downloads
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