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Effects of decentralization on school resources

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Author Info

  • Ahlin, Åsa

    (Uppsala University)

  • Mörk, Eva

    ()
    (IFAU - Institute for Labour Market Policy Evaluation)

Abstract

Sweden has undertaken major national reforms of its schooling sector which, consequently, has been classified as one of the most decentralized ones in the OECD. This paper investigates the extent to which local tax base, grants, preferences and structural characteristics affected local schooling resources as decentralization took place. We use municipal data for the period 1989–95 which covers the key reform years without confounding decentralization with institutional changes after 1995. The main arguments against decentralization are not supported by our findings. First, school spending as well as teacher density is found to be more equally distributed across municipalities following decentralization. Second, local tax capacity does not influence schooling resources more in the decentralized regime than in the centralized regime. We also find that the form in which grants are distributed matter: Targeted grants have a significant positive impact on resources while general grants have not.

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Bibliographic Info

Paper provided by IFAU - Institute for Evaluation of Labour Market and Education Policy in its series Working Paper Series with number 2005:5.

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Length: 50 pages
Date of creation: 12 Feb 2005
Date of revision:
Publication status: Published in Economics of Education Review, 2008, pages 276-284.
Handle: RePEc:hhs:ifauwp:2005_005

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Postal: IFAU, P O Box 513, SE-751 20 Uppsala, Sweden
Phone: (+46) 18 - 471 70 70
Fax: (+46) 18 - 471 70 71
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Web page: http://www.ifau.se/
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Keywords: School resources; school finance reform; decentralization;

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References

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  1. Ahlin, Åsa, 2003. "Does School Competition Matter? Effects of a Large-Scale School Choice Reform on Student Performance," Working Paper Series 2003:2, Uppsala University, Department of Economics.
  2. Åsa Ahlin & Eva Johansson, 2001. "Individual Demand for Local Public Schooling: Evidence from Swedish Survey Data," International Tax and Public Finance, Springer, vol. 8(4), pages 331-351, August.
  3. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
  4. Silva, Fabio & Sonstelie, Jon, 1995. "Did Serrano Cause a Decline in School Spending," National Tax Journal, National Tax Association, vol. 48(2), pages 199-215, June Cita.
  5. Bergstrom, Pal & Dahlberg, Matz & Mork, Eva, 2004. "The effects of grants and wages on municipal labour demand," Labour Economics, Elsevier, vol. 11(3), pages 315-334, June.
  6. Caroline M. Hoxby, 2001. "All School Finance Equalizations Are Not Created Equal," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1189-1231, November.
  7. Dahlberg, Matz & Mörk, Eva, 2005. "Public Employment and the Double Role of Bureaucrats," Working Paper Series 2005:3, Uppsala University, Department of Economics.
  8. Murray, Sheila E & Evans, William N & Schwab, Robert M, 1998. "Education-Finance Reform and the Distribution of Education Resources," American Economic Review, American Economic Association, vol. 88(4), pages 789-812, September.
  9. Mörk, Eva & Ahlin, Åsa, 2007. "Effects of decentralization on school resources: Sweden 1989-2002," Working Paper Series 2007:9, Uppsala University, Department of Economics.
  10. Robert Manwaring & Steven Sheffrin, 1997. "Litigation, School Finance Reform, and Aggregate Educational Spending," International Tax and Public Finance, Springer, vol. 4(2), pages 107-127, May.
  11. David Card & A. Abigail Payne, 1998. "School Finance Reform, the Distribution of School Spending, and the Distribution of SAT Scores," NBER Working Papers 6766, National Bureau of Economic Research, Inc.
  12. Winkler, Donald R. & Rounds, Taryn, 1996. "Municipal and private sector response to decentralization and school choice," Economics of Education Review, Elsevier, vol. 15(4), pages 365-376, October.
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Citations

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Cited by:
  1. Wondratschek, Verena & Edmark, Karin & Frölich, Markus, 2013. "The short- and long-term effects of school choice on student outcomes: Evidence from a school choice reform in Sweden," ZEW Discussion Papers 13-105, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Martin Sˆderstrˆm & Roope Uusitalo, 2010. "School Choice and Segregation: Evidence from an Admission Reform," Scandinavian Journal of Economics, Wiley Blackwell, vol. 112(1), pages 55-76, 03.
  3. Borge, Lars-Erik & Brueckner, Jan K. & Rattsø, Jorn, 2014. "Partial fiscal decentralization and demand responsiveness of the local public sector: Theory and evidence from Norway," Journal of Urban Economics, Elsevier, vol. 80(C), pages 153-163.
  4. Hägglund, Pathric, 2006. "Are there pre-programme effects of Swedish active labour market policies? Evidence from three randomised experiments," Working Paper Series 2006:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.

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