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Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis

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  • Thushyanthan Baskaran

    ()
    (Gothenburg Centre of Globalization and Development, Department of Economics, University of Gothenburg, Sweden)

  • Zohal Hessami

    ()
    (Department of Economics, University of Konstanz, Germany)

Abstract

This paper studies the relationship between globalization and the composition of public education expenditures. The theoretical model is embedded in a median voter setting and is based on the assumption that globalization leads to lower tax revenues as well as an increase in the relative wage of high-skilled workers. Overall, the theoretical discussion suggests that globalization induces a shift from primary to tertiary education expenditures, which is backed up by empirical evidence from dynamic panel estimations for 121 countries over the 1992 - 2006 period. A possible implication of the shift in educational priorities towards higher education is an increase in income inequality

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Bibliographic Info

Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2010-03.

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Length: 34 pages
Date of creation: 28 Sep 2010
Date of revision:
Handle: RePEc:knz:dpteco:1003

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Keywords: Globalization; public education expenditures; educational policy;

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Citations

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Cited by:
  1. Chagas Lopes, MARGARIDA, 2012. "Education, Development and Knowledge: New Forms of Unequal Change Under Globalization. The Case of SSA Countries," MPRA Paper 55742, University Library of Munich, Germany.
  2. Thushyanthan Baskaran & Zohal Hessami, 2011. "Public Education Spending in a Globalized World: Is there a Shift in Priorities Across Educational Stages?," Working Paper Series of the Department of Economics, University of Konstanz 2011-42, Department of Economics, University of Konstanz.
  3. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer, vol. 19(5), pages 677-707, October.
  4. Lopes, Margarida, 2011. "Education, vocational training and R&D: towards new forms of labor market regulation," MPRA Paper 32412, University Library of Munich, Germany.

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