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What Determines Education Expenditure In Israel?

Author

Listed:
  • Michel Strawczynski

    (Bank of Israel)

  • Joseph Zeira

    (Hebrew University of Jerusalem)

Abstract

There were marked shifts in both the share of national expenditure on education in GDP, as well as in its composition, in 1962-98. At the beginning of the period the share of education in GDP soared, remained relatively constant in the 1970s, declined in the 1980s, and began to rise again in the 1990s. This paper analyzes the relations between these shifts and various demographic, economic, and political explanatory variables. We find that demographic variables, such as age group and the proportion of Arab students, as well as economic variables—chief among them the level and distribution of national income—explained a significant part of expenditure on education. We further find that to fully explain the development of public spending on education in Israel, we need to consider some political variables as well, such as the second Rabin government. We also compare the development of public and private expenditure on education, current expenditure and investment, and the composition of expenditure on the various stages of the education system—pre-school, primary, secondary, and higher education.

Suggested Citation

  • Michel Strawczynski & Joseph Zeira, 2003. "What Determines Education Expenditure In Israel?," Israel Economic Review, Bank of Israel, vol. 1(1), pages 11-33.
    • Handle: RePEc:boi:isrerv:v:1:y:2003:i:1:p:11-33
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    References listed on IDEAS

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    1. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
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    Cited by:

    1. Reham Rizk & Hala Abou-Ali, 2016. "Out of Pocket Education Expenditure and Household Budget: Evidence from Arab Countries," Working Papers 996, Economic Research Forum, revised May 2016.
    2. Michel Strawczynski, 2022. "Cyclicality of Tax Expenditures: The Case of Israel," Bank of Israel Working Papers 2022.04, Bank of Israel.

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