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Are the Elderly a Threat to Educational Expenditures?

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  • Alejandra Cattaneo
  • Stefan C. Wolter

Abstract

Empirical research has given cause to fear that the demographic ageing in industrialized countries is likely to exert a negative impact on educational spending. These papers have linked the share of the elderly with the per capita or per pupil spending on education at the local, state-wide or national level, trying to control for other exogenous effects. Although this line of research shows in many cases a negative correlation between the shares of elderly people and educational expenditures, a causal link is difficult to prove. This paper uses a unique and representative survey of Swiss voters of all age groups. The analysis shows that elderly people present a clear tendency to be less willing to spend money on education. They would rather prefer to spend public resources on health and social security than on education. Furthermore the paper shows that much of the negative correlation between the shares of elderly and educational spending is the result of the elderly being politically more conservative and in general less inclined to pay for expenditures in the public sector as a whole.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2007/wp-cesifo-2007-09/cesifo1_wp2089.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 2089.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_2089

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Keywords: public finance; education finance; demographics; survey; Switzerland;

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References

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  1. Gradstein, Mark & Kaganovich, Michael, 2004. "Aging population and education finance," Journal of Public Economics, Elsevier, Elsevier, vol. 88(12), pages 2469-2485, December.
  2. Harris, Amy Rehder & Evans, William N. & Schwab, Robert M., 2001. "Education spending in an aging America," Journal of Public Economics, Elsevier, Elsevier, vol. 81(3), pages 449-472, September.
  3. Michael B. Berkman & Eric Plutzer, 2004. "Gray Peril or Loyal Support? The Effects of the Elderly on Educational Expenditures-super-," Social Science Quarterly, Southwestern Social Science Association, Southwestern Social Science Association, vol. 85(5), pages 1178-1192.
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Citations

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Cited by:
  1. Eric J. Brunner & Stephen L. Ross & Rebecca K. Simonsen, 2013. "Homeowners, Renters and the Political Economy of Property Taxation," Working papers, University of Connecticut, Department of Economics 2013-30, University of Connecticut, Department of Economics.
  2. repec:pdn:wpaper:46 is not listed on IDEAS
  3. Estevan, Fernanda, 2013. "The impact of conditional cash transfers on public education expenditures: A political economy approach," European Journal of Political Economy, Elsevier, Elsevier, vol. 32(C), pages 268-284.
  4. Tim Krieger & Jens Ruhose, 2013. "Honey, I shrunk the kids’ benefits—revisiting intergenerational conflict in OECD countries," Public Choice, Springer, Springer, vol. 157(1), pages 115-143, October.
  5. Michael Berlemann & Marco Oestmann & Marcel Thum, 2014. "Demographic change and bank profitability: empirical evidence from German savings banks," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 46(1), pages 79-94, January.
  6. Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) 13-06-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Sep 2013.
  7. Busemeyer, Marius R. & Cattaneo, Maria Alejandra & Wolter, Stefan C., 2010. "Individual policy preferences for vocational versus academic education micro level evidence for the case of Switzerland," MPIfG Discussion Paper, Max Planck Institute for the Study of Societies 10/11, Max Planck Institute for the Study of Societies.
  8. Rattsø, Jørn & Sørensen, Rune J., 2010. "Grey power and public budgets: Family altruism helps children, but not the elderly," European Journal of Political Economy, Elsevier, Elsevier, vol. 26(2), pages 222-234, June.
  9. Nguyen-Hoang, Phuong, 2013. "Tax Limit Repeal And School Spending," National Tax Journal, National Tax Association, vol. 66(1), pages 117-48, March.
  10. Sørensen, Rune J., 2013. "Does aging affect preferences for welfare spending? A study of peoples' spending preferences in 22 countries, 1985–2006," European Journal of Political Economy, Elsevier, Elsevier, vol. 29(C), pages 259-271.
  11. Uschi Backes-Gellner & Johannes Mure, 2008. "The Swiss Leading House on Economics of Education, Firm Behaviour and Training Policies," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0014, University of Zurich, Institute for Strategy and Business Economics (ISU).
  12. Joern Rattsoe & Rune J. Soerensen, 2009. "Grey power and public budgets: Family altruism helps children, but not elderly," Working Paper Series, Department of Economics, Norwegian University of Science and Technology 10009, Department of Economics, Norwegian University of Science and Technology.
  13. Anna Montén & Marcel Thum, 2008. "Ageing Municipalities, Gerontocracy and Fiscal Competition," CESifo Working Paper Series 2469, CESifo Group Munich.
  14. Tetsuo Ono, 2013. "Public Education and Social Security: A Political Economy Approach," Discussion Papers in Economics and Business, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) 13-06, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  15. Chantal Oggenfuss & Stefan C. Wolter, 2014. "Are the education policy preferences of teachers just a reflection of their occupational concerns?," Economics of Education Working Paper Series, University of Zurich, Institute for Strategy and Business Economics (ISU) 0101, University of Zurich, Institute for Strategy and Business Economics (ISU).

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