This paper evaluates the effects of public education expenditure on student enrollment in tertiary education. We use a cross-section of 132 countries to demonstrate that public expenditure on primary and secondary education positively affects tertiary enrollment rates, while the generosity of tertiary education subsidies themselves do not appear to have any signifcant impact on tertiary enrollment. The results presented are robust to various specifcations, and raise serious concerns regarding the within country allocation of public resources on education, which seems to be biased towards higher education, especially for less developed countries.
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Paper provided by The Ratio Institute in its series Ratio Working Papers with number
84.
Length: 20 pages Date of creation: 15 Feb 2006 Date of revision: Handle: RePEc:hhs:ratioi:0084
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Find related papers by JEL classification: H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education I22 - Health, Education, and Welfare - - Education - - - Educational Finance
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