IDEAS home Printed from https://ideas.repec.org/h/aec/ieed06/06-23.html
   My bibliography  Save this book chapter

Public expenditure on education and skill formation: are there simple rules to maximise skills?

In: Investigaciones de Economía de la Educación 6

Author

Listed:
  • Rossana Patron

    () (Universidad de la Republica)

  • Marcel Vaillant

    () (Universidad de la Republica)

Abstract

The ratio of skill to unskilled labour stocks in the economy is widely acknowledged to have an important role for development. Can education policy do anything to affect the evolution of this ratio? This paper shows that it can, and it also shows that the actual effect of education policy depends on the allocation rule of the budget across educational levels. The consideration of a stylised hierarchical education model allows us to develop analytical conditions under which the allocation rule favours the accumulation of skills. The analysis has implication for policy makers in developing countries, where skill formation is much needed, as it shows that observed allocation rules usually violate the maximisation condition by the assignment of higher than optimal resources to higher education.

Suggested Citation

  • Rossana Patron & Marcel Vaillant, 2011. "Public expenditure on education and skill formation: are there simple rules to maximise skills?," Investigaciones de Economía de la Educación volume 6,in: Antonio Caparrós Ruiz (ed.), Investigaciones de Economía de la Educación 6, edition 1, volume 6, chapter 23, pages 387-397 Asociación de Economía de la Educación.
  • Handle: RePEc:aec:ieed06:06-23
    as

    Download full text from publisher

    File URL: http://repec.economicsofeducation.com/2011malaga/06-23.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Chris Papageorgiou, 2003. "Distinguishing Between the Effects of Primary and Post-primary Education on Economic Growth," Review of Development Economics, Wiley Blackwell, vol. 7(4), pages 622-635, November.
    2. Robert Driskill & Andrew W. Horowitz & Fabio Méndez, 2009. "Hierarchical Human Capital and Economic Growth: Theory and Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 165(4), pages 723-743, December.
    3. Driskill, Robert A & Horowitz, Andrew W, 2002. "Investment in Hierarchical Human Capital," Review of Development Economics, Wiley Blackwell, vol. 6(1), pages 48-58, February.
    4. Birdsall, Nancy & O'Connell, Lesley & Londoño de la Cuesta, Juan Luis, 1998. "Education in Latin America: demand and distribution are factors that matter," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    education budget; endowment growth;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aec:ieed06:06-23. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Domingo P. Ximénez-de-Embún). General contact details of provider: http://edirc.repec.org/data/aedeeea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.