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Short-Run Distributional Effects of Public Education in Greece

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  • Koutsampelas, Christos

    ()
    (University of Cyprus)

  • Tsakloglou, Panos

    ()
    (Athens University of Economics and Business)

Abstract

The present paper examines the short-run distributional impact of public education in Greece using the micro-data of the 2004/5 Household Budget Survey. The aggregate distributional impact of public education is found to be progressive although the incidence varies according to the level of education under examination. In-kind transfers of public education services in the fields of primary and secondary education lead to a considerable decline in relative inequality, whereas transfers in the field of tertiary education appear to have a small distributional impact whose size and sign depend on the treatment of tertiary education students living away from the parental home. When absolute inequality indices are used instead of the relative ones, primary education transfers retain their progressivity, while secondary education transfers appear almost neutral and tertiary education transfers become quite regressive. Finally, we use the EUROMOD tax-benefit microsimulation model in order to estimate the first-round distributional effects of a graduate tax imposed on the current stock of graduates. The main policy implications of the findings are outlined in the concluding section.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6283.

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Length: 24 pages
Date of creation: Jan 2012
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Handle: RePEc:iza:izadps:dp6283

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Keywords: public education; redistribution; Greece;

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  1. Tsakloglou, Panos, 1993. "Aspects of inequality in Greece : Measurement, decomposition and intertemporal change: 1974, 1982," Journal of Development Economics, Elsevier, Elsevier, vol. 40(1), pages 53-74, February.
  2. Antoninis, M. & Tsakloglou, P., 1997. "On the Distributional Impact of Public Education: Evidence from Greece," DEOS Working Papers 97-01, Athens University of Economics and Business.
  3. Jimenez, Emmanuel, 1986. "The Public Subsidization of Education and Health in Developing Countries: A Review of Equity and Efficiency," World Bank Research Observer, World Bank Group, World Bank Group, vol. 1(1), pages 111-29, January.
  4. Manos Antoninis & Panos Tsakloglou, 2001. "Who Benefits from Public Education in Greece? Evidence and Policy Implications," Education Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 9(2), pages 197-222.
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  7. 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.
  8. Thomas Lemieux, 2006. "Post-Secondary Education and Increasing Wage Inequality," NBER Working Papers 12077, National Bureau of Economic Research, Inc.
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  10. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers, Economic and Social Research Institute (ESRI) WP207, Economic and Social Research Institute (ESRI).
  11. 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.
  12. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, Elsevier, vol. 2(3), pages 244-263, September.
  13. Milton Friedman & Simon Kuznets, 1954. "Income from Independent Professional Practice," NBER Books, National Bureau of Economic Research, Inc, number frie54-1.
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  16. Patrinos, Harry Anthony, 1995. "Socioeconomic background, schooling, experience, ability and monetary rewards in Greece," Economics of Education Review, Elsevier, Elsevier, vol. 14(1), pages 85-91, March.
  17. Blackorby, Charles & Donaldson, David, 1980. "A Theoretical Treatment of Indices of Absolute Inequality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 107-36, February.
  18. Daouli, Joan & Demoussis, Michael & Giannakopoulos, Nicholas, 2010. "Mothers, fathers and daughters: Intergenerational transmission of education in Greece," Economics of Education Review, Elsevier, Elsevier, vol. 29(1), pages 83-93, February.
  19. Plotnick, Robert, 1981. "A Measure of Horizontal Inequity," The Review of Economics and Statistics, MIT Press, vol. 63(2), pages 283-88, May.
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Cited by:
  1. Koutsampelas, Christos & Tsakloglou, Panos, 2012. "The Distribution of Full Income in Greece," IZA Discussion Papers 6396, Institute for the Study of Labor (IZA).
  2. Tim Callan & Tim Smeeding & Panos Tsakloglou, 2007. "Distributional Effects of Public Education Transfers in Seven European Countries," Papers, Economic and Social Research Institute (ESRI) WP207, Economic and Social Research Institute (ESRI).

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