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Does a generous welfare state crowd out student achievement? Panel data evidence from international student tests

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  • Torberg Falch
  • Justina AV Fischer

Abstract

Student achievement has been identified as important contributor to economic growth. This paper investigates the relationship between redistributive government activities and investment in human capital measured by student performance in international comparative tests in Mathematics and Science during the period 1980 to 2003. In fixed effects panel models, government consumption, government social expenditures, and the progressivity of the income tax system have negative effects on student achievement. We report results from a variety of model specifications and social expenditure components, and our best estimate indicates that increased government size by 10 percent reduces student achievement by 0.1 standard deviations.

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Bibliographic Info

Paper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 31.

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Date of creation: 2008
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Handle: RePEc:twi:respas:0031

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Keywords: Student achievement; welfare state; government size; tax system; panel data; international tests;

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  1. Ludger Wößmann, 2000. "Schooling Resources, Educational Institutions, and Student Performance: The International Evidence," Kiel Working Papers 983, Kiel Institute for the World Economy.
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  17. Kneller, Richard & Bleaney, Michael F. & Gemmell, Norman, 1999. "Fiscal policy and growth: evidence from OECD countries," Journal of Public Economics, Elsevier, vol. 74(2), pages 171-190, November.
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