Does a generous welfare state crowd out student achievement? Panel data evidence from international student tests
AbstractStudent 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Thurgauer Wirtschaftsinstitut, Universität Konstanz in its series TWI Research Paper Series with number 31.
Date of creation: 2008
Date of revision:
Student achievement; welfare state; government size; tax system; panel data; international tests;
Other versions of this item:
- Torberg Falch & Justina A.V. Fischer, 2008. "Does a Generous Welfare State Crowd out Student Achievement? Panel Data Evidence from International Student Tests," CESifo Working Paper Series 2383, CESifo Group Munich.
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- 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-2008-07-30 (All new papers)
- NEP-EDU-2008-07-30 (Education)
- NEP-HRM-2008-07-30 (Human Capital & Human Resource Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jamison, Eliot A. & Jamison, Dean T. & Hanushek, Eric A., 2007.
"The effects of education quality on income growth and mortality decline,"
Economics of Education Review,
Elsevier, vol. 26(6), pages 771-788, December.
- Eliot A. Jamison & Dean T. Jamison & Eric A. Hanushek, 2006. "The Effects of Education Quality on Income Growth and Mortality Decline," NBER Working Papers 12652, National Bureau of Economic Research, Inc.
- Folster, Stefan & Henrekson, Magnus, 2001.
"Growth effects of government expenditure and taxation in rich countries,"
European Economic Review,
Elsevier, vol. 45(8), pages 1501-1520, August.
- Fölster, Stefan & Henrekson, Magnus, 2000. "Growth Effects of Government Expenditure and Taxation in Rich Countries," Working Paper Series in Economics and Finance 391, Stockholm School of Economics.
- Fölster, Stefan & Henrekson, Magnus, 1998. "Growth Effects of Government Expenditure and Taxation in Rich Countries," Working Paper Series 503, Research Institute of Industrial Economics, revised 20 Jun 2000.
- Christian Bjørnskov & Axel Dreher & Justina A. V. Fischer, 2005.
"The bigger the better? Evidence of the effect of government size on life satisfaction around the world,"
CER-ETH Economics working paper series
05/44, CER-ETH - Center of Economic Research (CER-ETH) at ETH Zurich.
- Christian Bjørnskov & Axel Dreher & Justina Fischer, 2007. "The bigger the better? Evidence of the effect of government size on life satisfaction around the world," Public Choice, Springer, vol. 130(3), pages 267-292, March.
- Sinn, Hans-Werner, 1995.
" A Theory of the Welfare State,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 97(4), pages 495-526, December.
- Christian Bjørnskov & Axel Dreher & Justina A.V. Fischer, 2005.
"Cross-Country Determinants of Life Satisfaction: Exploring Different Determinants across Groups in Society,"
University of St. Gallen Department of Economics working paper series 2005
2005-19, Department of Economics, University of St. Gallen.
- Christian Bjørnskov & Axel Dreher & Justina Fischer, 2008. "Cross-country determinants of life satisfaction: exploring different determinants across groups in society," Social Choice and Welfare, Springer, vol. 30(1), pages 119-173, January.
- Christian Bjørnskov & Axel Dreher & Justina A.V. Fischer, 2006. "Cross-Country Determinants of Life Satisfaction: Exploring Different Determinants across Groups in Society," KOF Working papers 06-145, KOF Swiss Economic Institute, ETH Zurich.
- Christian Bjørnskov & Axel Dreher & Justina A. V. Fischer, 2006. "Cross-Country Determinants of Life Satisfaction:Exploring Different Determinants across Groups inSociety," STICERD - Political Economy and Public Policy Paper Series 21, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
- Bas Jacobs, 2007.
"Real Options and Human Capital Investment,"
CESifo Working Paper Series
1982, CESifo Group Munich.
- Ludger Woesmann, 2003.
"Schooling Resources, Educational Institutions and Student Performance: the International Evidence,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 65(2), pages 117-170, 05.
- Ludger WöÂßmann, 2000. "Schooling Resources, Educational Institutions, and Student Performance: The International Evidence," Kiel Working Papers 983, Kiel Institute for the World Economy.
- Hogan, Vincent & Walker, Ian, 2007.
"Education choice under uncertainty: Implications for public policy,"
Elsevier, vol. 14(6), pages 894-912, December.
- Vincent Hogan & Ian Walker, 2006. "Education Choice under Uncertainty - Implications for Public Policy," Working Papers 200615, School Of Economics, University College Dublin.
- Agell, Jonas & Ohlsson, Henry & Skogman Thoursie, Peter, 2003.
"Growth Effects of Government Expenditure and Taxation in Rich Countries: A Comment,"
Research Papers in Economics
2003:14, Stockholm University, Department of Economics.
- Agell, Jonas & Ohlsson, Henry & Thoursie, Peter Skogman, 2006. "Growth effects of government expenditure and taxation in rich countries: A comment," European Economic Review, Elsevier, vol. 50(1), pages 211-218, January.
- Kerwin Kofi Charles & Ming-Ching Luoh, 2003.
"Gender Differences in Completed Schooling,"
The Review of Economics and Statistics,
MIT Press, vol. 85(3), pages 559-577, August.
- 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.
- Jie Zhang & Junsen Zhang, 2004. "How does social security affect economic growth? Evidence from cross-country data," Journal of Population Economics, Springer, vol. 17(3), pages 473-500, 08.
- Eric A. Hanushek & Ludger Woessmann, 2007.
"The Role of School Improvement in Economic Development,"
NBER Working Papers
12832, National Bureau of Economic Research, Inc.
- Eric A. Hanushek & Ludger Woessmann, 2007. "The Role of School Improvement in Economic Development," CESifo Working Paper Series 1911, CESifo Group Munich.
- Eric A. Hanushek & Javier A. Luque, 2002.
"Efficiency and Equity in Schools around the World,"
NBER Working Papers
8949, National Bureau of Economic Research, Inc.
- Laibson, David, 1997.
"Golden Eggs and Hyperbolic Discounting,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(2), pages 443-77, May.
- Ehrlich, Isaac & Zhong, Jian-Guo, 1998. "Social Security and the Real Economy: An Inquiry into Some Neglected Issues," American Economic Review, American Economic Association, vol. 88(2), pages 151-57, May.
- Glomm, Gerhard & Ravikumar, B, 1992. "Public versus Private Investment in Human Capital Endogenous Growth and Income Inequality," Journal of Political Economy, University of Chicago Press, vol. 100(4), pages 818-34, August.
- Isaac Ehrlich & Jinyoung Kim, 2007. "Social Security and Demographic Trends: Theory and Evidence from the International Experience," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(1), pages 55-77, January.
- Welfare state in Wikipedia (English)
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ulrich Wacker).
If references are entirely missing, you can add them using this form.