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

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  • Baskaran, Thushyanthan
  • Hessami, Zohal

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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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25750.

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Date of creation: 15 Sep 2010
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Handle: RePEc:pra:mprapa:25750

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Keywords: Globalization; public education expenditures; educational policy;

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Citations

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Cited by:
  1. Margarida Chagas Lopes, 2011. "Education, Vocational Training and R&D: Towards New Forms of Labor Market Regulation," Working Papers, Socius, Socio-Economics Research Centre at the School of Economics and Management (ISEG) of the Technical University of Lisbon wp082011, Socius, Socio-Economics Research Centre at the School of Economics and Management (ISEG) of the Technical University of Lisbon.
  2. Thushyanthan Baskaran & Zohal Hessami, 2012. "Public education spending in a globalized world:," International Tax and Public Finance, Springer, Springer, vol. 19(5), pages 677-707, October.
  3. Margarida Chagas Lopes, 2011. "Education, Development and Knowledge: new forms of unequal change under globalization. The case of SSA countries," Working Papers, Socius, Socio-Economics Research Centre at the School of Economics and Management (ISEG) of the Technical University of Lisbon wp102011, Socius, Socio-Economics Research Centre at the School of Economics and Management (ISEG) of the Technical University of Lisbon.
  4. 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, Department of Economics, University of Konstanz 2011-42, Department of Economics, University of Konstanz.

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