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Public education expenditures and private school enrollment

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  • Fernanda Estevan

Abstract

In this paper, I investigate whether increases in public education expenditures lead to reductions in private school enrollment. In order to deal with the endogeneity of public expenditures, I use as a natural experiment the 1998 FUNDEF reform in Brazil that caused exogenous variations in local public school funding. Using data from Brazilian School and Population censuses, I show that public education expenditures increases are associated with reductions in the share of private school enrollment for grade 1. However, the effect is smaller for grades 2 to 4, which is consistent with the existence of costs associated with switching schools.

Suggested Citation

  • Fernanda Estevan, 2015. "Public education expenditures and private school enrollment," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 561-584, May.
    • Handle: RePEc:cje:issued:v:48:y:2015:i:2:p:561-584
    DOI: 10.1111/caje.12136
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    Cited by:

    1. Mike Gilraine & Hugh Macartney & Rob McMillan, 2018. "Education Reform in General Equilibrium: Evidence from California's Class Size Reduction," Working Papers tecipa-594, University of Toronto, Department of Economics.
    2. Michael Dinerstein & Troy D. Smith, 2021. "Quantifying the Supply Response of Private Schools to Public Policies," American Economic Review, American Economic Association, vol. 111(10), pages 3376-3417, October.
    3. Kosec, Katrina, 2014. "Relying on the private sector: The income distribution and public investments in the poor," Journal of Development Economics, Elsevier, vol. 107(C), pages 320-342.
    4. Michael Gilraine & Hugh Macartney & Robert McMillan, 2018. "Estimating the Direct and Indirect Effects of Major Education Reforms," NBER Working Papers 24191, National Bureau of Economic Research, Inc.
    5. Chauvin, Juan Pablo, 2024. "Local Education Spending and Migration: Evidence from a Large Redistribution Program," IDB Publications (Working Papers) 13497, Inter-American Development Bank.
    6. Ferry Prasetyia, 2019. "The role of local government policy on secondary school enrolment decision in Indonesia," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 139-172, June.
    7. Lazaretti, Lauana Rossetto & Aniceto França, Marco Túlio, 2020. "School competition and performance indicators: evidence from the creation of federal education institutions in Brazil," International Journal of Educational Development, Elsevier, vol. 77(C).
    8. Terra, Rafael & Mattos, Enlinson, 2017. "Accountability and yardstick competition in the public provision of education," Journal of Urban Economics, Elsevier, vol. 99(C), pages 15-30.
    9. Fernanda Estevan, 2015. "Public education expenditures and private school enrollment," Canadian Journal of Economics, Canadian Economics Association, vol. 48(2), pages 561-584, May.
    10. Filer, Randall K. & Münich, Daniel, 2013. "Responses of private and public schools to voucher funding," Economics of Education Review, Elsevier, vol. 34(C), pages 269-285.
    11. Pr Henri Atangana Ondoa, 2018. "The effects of heavily indebted poor countries initiative (HIPC) on millennium development goals (MDGs) for education," Review of Social Economy, Taylor & Francis Journals, vol. 76(4), pages 453-479, October.
    12. Christopher Neilson & Michael Dinerstein & Sebastián Otero, 2020. "The Equilibrium Effects of Public Provision in Education Markets: Evidence from a Public School Expansion Policy," Working Papers 645, Princeton University, Department of Economics, Industrial Relations Section..
    13. Kosec, Katrina, 2011. "Politics and preschool : the political economy of investment in pre-primary education," Policy Research Working Paper Series 5647, The World Bank.
    14. Fagernäs, Sonja & de la Fuente Stevens, Diego & Pelkonen, Panu & del Pozo Segura, Juan Manuel, 2025. "Public Gains, Private Strains: Public Investment and Private Schooling in Peru," IZA Discussion Papers 18189, Institute of Labor Economics (IZA).

    More about this item

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education

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