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Welfare state generosity and student performance: Evidence from international student tests

Torberg Falch and Justina A. V. Fischer

MPRA Paper from University Library of Munich, Germany

Abstract: Student achievement has been identified as important contributor to economic growth. This paper investigates the relationship between redistributive government activities and investment in human capital measured by student performance in international comparative tests in Mathematics and Science during the period 1980 to 2003. In fixed effects panel models, government consumption, government social expenditures, and the progressivity of the income tax system have negative effects on student achievement. The results are robust to a variety of model specifications, including models that condition on educational expenditures. Our best estimate indicates that increased government size by 10 percent reduces student achievement by 0.1 standard deviations

Keywords: Student achievement; welfare state; government size; tax system; panel data; international tests (search for similar items in EconPapers)
JEL-codes: C33 H2 I2 (search for similar items in EconPapers)
Date: 2011-12-07
New Economics Papers: this item is included in nep-edu
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Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Welfare state generosity and student performance: Evidence from international student tests (2014) Downloads
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