Advanced Search
MyIDEAS: Login to save this paper or follow this series

Distributional Effects of Public Education Transfers in Seven European Countries

Contents:

Author Info

  • Tim Callan

    (Economic and Social Research Institute (ESRI))

  • Tim Smeeding

    (Syracuse University)

  • Panos Tsakloglou

    (Athens University of Economics and Business)

Abstract

Empirical studies of inequality and poverty are usually based on disposable cash incomes, disregarding incomes in-kind (non-cash incomes). Since individuals also derive utility from the consumption of goods and services provided in-kind monetary income is not always a good indicator of an individual's utility or ?command over resources?. Thus, distributional analysis based on cash incomes may be seriously biased. Inclusion of non-cash incomes (arising from private sources or from public provision of services such as health, housing and education) may allow for better targeting and allocation of resources in fighting poverty and social exclusion. The present paper focuses on non-cash incomes arising from publicly provided education in seven European countries (Belgium, Germany, Greece, Italy, Ireland, the Netherlands and the UK), as part of a broader research project (AIM-AP Accurate Income Measurement for the Assessment of Policy) investigating the distributional implications of including elements of non-cash income in the measurement of wider resources. In all countries under examination public education transfers account for a considerable proportion of the total transfers of the state to the citizens. The paper uses static incidence analysis under the assumption that public education transfers do not create noticeable externalities, combining the information of existing nationwide income surveys with external information on spending per student in particular levels of the education system. In all countries public education transfers are found to reduce aggregate inequality. These effects are driven by the impact of primary and, especially, secondary education transfers at the time of their receipt and assuming benefits are valued at cost by recipients. In a static framework, transfers in the field of tertiary education appear to have a small distributional impact while the size and the sign of this impact depend on the treatment of tertiary education students living away from the parental home.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.esri.ie/UserFiles/publications/20070904134516/WP207.pdf
File Function: First version, 2007
Download Restriction: no

Bibliographic Info

Paper provided by Economic and Social Research Institute (ESRI) in its series Papers with number WP207.

as in new window
Length: 45 pages
Date of creation: Sep 2007
Date of revision:
Handle: RePEc:esr:wpaper:wp207

Contact details of provider:
Postal: Whitaker Square, Sir John Rogerson's Quay, Dublin 2
Phone: (353-1) 863 2000
Fax: (353-1) 863 2100
Email:
Web page: http://www.esri.ie
More information through EDIRC

Related research

Keywords:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Tsakloglou, Panos & Antoninis, Manos, 1999. "On the distributional impact of public education: evidence from Greece," Economics of Education Review, Elsevier, vol. 18(4), pages 439-452, October.
  2. Estelle James & Gail Benjamin, 1987. "Educational Distribution and Income Redistribution through Education in Japan," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 469-489.
  3. David Card & Abigail A. Payne, 1997. "School Finance Reform, the Distribution of School Spending, and the Distribution of SAT Scores," Working Papers 766, Princeton University, Department of Economics, Industrial Relations Section..
  4. Bas Jacobs & Frederick van der Ploeg, 2006. "Guide to reform of higher education: a European perspective," Economic Policy, CEPR;CES;MSH, vol. 21(47), pages 535-592, 07.
  5. Smeeding, Timothy M, et al, 1993. "Poverty, Inequality, and Family Living Standards Impacts across Seven Nations: The Effect of Noncash Subsidies for Health, Education and Housing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 229-56, September.
  6. Christopher Heady & Theodore Mitrakos & Panos Tsakloglou, 2001. "The distributional impact of social transfers in the European Union: evidence from the ECHP," Fiscal Studies, Institute for Fiscal Studies, vol. 22(4), pages 547-565., December.
  7. Atkinson, Tony & Cantillon, Bea & Marlier, Eric & Nolan, Brian, 2002. "Social Indicators: The EU and Social Inclusion," OUP Catalogue, Oxford University Press, number 9780199253494, October.
  8. Koutsampelas, Christos & Tsakloglou, Panos, 2012. "Short-Run Distributional Effects of Public Education in Greece," IZA Discussion Papers 6283, Institute for the Study of Labor (IZA).
  9. Tom Sefton, 2002. "Recent Changes in the Distribution of the Social Wage," CASE Papers case62, Centre for Analysis of Social Exclusion, LSE.
  10. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
  11. Sen, Amartya K, 1976. "Poverty: An Ordinal Approach to Measurement," Econometrica, Econometric Society, vol. 44(2), pages 219-31, March.
  12. Kathryn Wilson, 2000. "Using the Psid to Study the Effects of School Spending," Public Finance Review, , vol. 28(5), pages 428-451, September.
  13. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  14. Radner, Daniel B, 1997. "Noncash Income, Equivalence Scales, and the Measurement of Economic Well-Being," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 71-88, March.
  15. William Duncombe & John Yinger, 1997. "Why is it so hard to help central city schools?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 16(1), pages 85-113.
  16. Manos Antoninis & Panos Tsakloglou, 2001. "Who Benefits from Public Education in Greece? Evidence and Policy Implications," Education Economics, Taylor & Francis Journals, vol. 9(2), pages 197-222.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Callan, Tim & Nolan, Brian & Walsh, John R. & Whelan, Christopher T. & Maitre, Bertrand, 2008. "Tackling Low Income and Deprivation: Developing Effective Policies," Research Series, Economic and Social Research Institute (ESRI), number RS1.
  2. Alari Paulus & Holly Sutherland & Panos Tsakloglou, 2010. "The distributional impact of in-kind public benefits in European countries," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 29(2), pages 243-266.
  3. Tim Callan & Claire Keane, 2008. "Non-Cash Benefits and the Distribution of Economic Welfare," Papers WP245, Economic and Social Research Institute (ESRI).
  4. Darragh Flannery & Cathal O’Donoghue, 2011. "The Life-cycle Impact of Alternative Higher Education Finance Systems in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 42(3), pages 237–270.
  5. Callan, Tim & Smeeding, Timothy M. & Tsakloglou, Panos, 2008. "Short-Run Distributional Effects of Public Education Transfers to Tertiary Education Students in Seven European Countries," IZA Discussion Papers 3557, Institute for the Study of Labor (IZA).
  6. Christos Koutsampelas & Panos Tsakloglou, 2011. "Short-run distributional effects of public education in Greece," University of Cyprus Working Papers in Economics 12-2011, University of Cyprus Department of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:esr:wpaper:wp207. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sarah Burns).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.