Does a generous welfare state crowd out student effort? Panel data evidence from international student tests
AbstractStudent achievement has been identified as an important contributor to economic growth. This paper investigates the hypothesis that redistributive government activities have a negative effect on investment in human capital using data from international comparative student achievement tests in Mathematics and Science for over 70 countries during the period 1980 to 2003. In fixed effects models, the impact on student achievement of both government consumption and government social expenditures are negative and seem to be robust across different model specifications. The effect of social expenditures appears to be driven by spending on pensions and active labor market policies.
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Bibliographic InfoPaper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 25.
Date of creation: 2008
Date of revision:
Student achievement; welfare state; panel data; PISA; TIMSS;
Other versions of this item:
- Falch, Torberg & Fischer, Justina AV, 2008. "Does a generous welfare state crowd out student effort? Panel data evidence from international student tests," Working Paper Series in Economics and Finance 694, Stockholm School of Economics.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- I20 - Health, Education, and Welfare - - Education - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-07-20 (All new papers)
- NEP-EDU-2008-07-20 (Education)
- NEP-HRM-2008-07-20 (Human Capital & Human Resource Management)
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