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Public education expenditures and private school enrollment

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  • Fernanda Estevan

Abstract

In this paper, I investigate whether increases in public education expenditures lead to reductions in private school enrollment. In order to deal with the endogeneity of public expenditures, I use as a natural experiment the 1998 FUNDEF reform in Brazil that caused exogenous variations in local public school funding. Using data from Brazilian School and Population censuses, I show that public education expenditures increases are associated with reductions in the share of private school enrollment for grade 1. However, the effect is smaller for grades 2 to 4, which is consistent with the existence of costs associated with switching schools. Dépenses pour l'instruction publique et inscriptions dans les écoles privées. Dans ce mémoire, on fait enquête pour établir si des accroissements dans les dépenses pour l'instruction publique mènent à des réductions dans les inscriptions dans les écoles privées. Conscient de l’endogénéité des dépenses publiques, l’auteur utilise la réforme FUNDEF de 1998 au Brazil, qui a entraîné des variations exogènes dans le financement des écoles publiques locales. À partir des données des recensements brésiliens des écoles et de la population, on montre que les accroissements de dépenses pour l'instruction publique sont associés à des réductions dans la part des écoles privées dans les inscriptions en première année. Cependant l’effet est plus faible pour les inscriptions dans les années (2 à 4) qui suivent – ce qui est cohérent avec l’existence de coûts associés aux changements d’école.

Suggested Citation

  • Fernanda Estevan, 2015. "Public education expenditures and private school enrollment," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 561-584, May.
  • Handle: RePEc:wly:canjec:v:48:y:2015:i:2:p:561-584
    DOI: 10.1111/caje.12136
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    Cited by:

    1. Michael Dinerstein & Troy D. Smith, 2021. "Quantifying the Supply Response of Private Schools to Public Policies," American Economic Review, American Economic Association, vol. 111(10), pages 3376-3417, October.
    2. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    3. Ferry Prasetyia, 2019. "The role of local government policy on secondary school enrolment decision in Indonesia," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 139-172, June.
    4. Terra, Rafael & Mattos, Enlinson, 2017. "Accountability and yardstick competition in the public provision of education," Journal of Urban Economics, Elsevier, vol. 99(C), pages 15-30.
    5. Pr Henri Atangana Ondoa, 2018. "The effects of heavily indebted poor countries initiative (HIPC) on millennium development goals (MDGs) for education," Review of Social Economy, Taylor & Francis Journals, vol. 76(4), pages 453-479, October.
    6. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    7. Christopher Neilson & Michael Dinerstein & Sebastián Otero, 2020. "The Equilibrium Effects of Public Provision in Education Markets: Evidence from a Public School Expansion Policy," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..

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    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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