The long-run and intergenerational education impacts of intergovernmental transfers

Irineu de Carvalho Filho and Stephan Litschig

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: This paper provides regression discontinuity evidence on long-run and intergenerational education impacts of a temporary increase in federal transfers to local governments in Brazil. Revenues and expenditures of the communities benefiting from extra transfers temporarily increased by about 20% during the 4 year period from 1982 to the end of 1985. Schooling and literacy gains for directly exposed cohorts established in previous work that used the 1991 census are attenuated but persist in the 2000 and 2010 censuses. Children and adolescents of the next generation --born after the extra funding had disappeared-- show gains of about 0.08 standard deviation across the entire score distribution of two nationwide exams at the end of the 2000s. While we find no evidence of persistent improvements in school resources, we document discontinuities in education levels, literacy rates and incomes of test takers' parents that are consistent with intergenerational human capital spillovers.

Keywords: intergovernmental grants; human capital; test scores; regression discontinuity (search for similar items in EconPapers)
JEL-codes: H40 H72 I21 O15 (search for similar items in EconPapers)
Date: 2013-09
New Economics Papers: this item is included in nep-cwa, nep-edu, nep-hrm and nep-ure
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:1390

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