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The Long-run and Intergenerational Education Impacts of Intergovernmental Transfers

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  • Irineu de Carvalho Filho
  • Stephan Litschig

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.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 718.

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Date of creation: Sep 2013
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Handle: RePEc:bge:wpaper:718

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Keywords: intergovernmental grants; human capital; test scores; regression discontinuity;

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  1. Pedro Carneiro & Costas Meghir & Matthias Parey, 2013. "Maternal Education, Home Environments, And The Development Of Children And Adolescents," Journal of the European Economic Association, European Economic Association, European Economic Association, vol. 11, pages 123-160, 01.
  2. Francesco Caselli & Guy Michaels, 2009. "Do oil windfalls improve living standards?: evidence from Brazil," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 28691, London School of Economics and Political Science, LSE Library.
  3. David S. Lee & Thomas Lemieux, 2010. "Regression Discontinuity Designs in Economics," Journal of Economic Literature, American Economic Association, vol. 48(2), pages 281-355, June.
  4. Guido Imbens & Thomas Lemieux, 2007. "Regression Discontinuity Designs: A Guide to Practice," NBER Technical Working Papers 0337, National Bureau of Economic Research, Inc.
  5. Lee, David S., 2008. "Randomized experiments from non-random selection in U.S. House elections," Journal of Econometrics, Elsevier, Elsevier, vol. 142(2), pages 675-697, February.
  6. Hahn, Jinyong & Todd, Petra & Van der Klaauw, Wilbert, 2001. "Identification and Estimation of Treatment Effects with a Regression-Discontinuity Design," Econometrica, Econometric Society, Econometric Society, vol. 69(1), pages 201-09, January.
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