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The Effect of National Expenditure in Education on Academic Performance and their Mechanisms

In: Investigaciones de Economía de la Educación 13

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  • María Orduz Perdomo

    (Universidad de los Andes)

Abstract

Taking advantage of a Colombian reform of the educational system as a quasi natural experiment, this article attempts to find the effect and the mechanisms that central government's spending on education has on academic performance. The reform generated an exogenous change in the amount of public school spending that each municipalities received from de central government for education. I used the variation of public school expending and the results of the standardized test Saber11 between 2004 and 2013 to find the causal effect of national expenditure on education in academic results. Using an instrumental variable model, the results show that an increase in transfers per student, during his academic life, of around 10% generates an improvement of 0.1 standard deviations in the test score at national level. I found that the students per teacher ratio is a relevant mechanism to explain this effect.

Suggested Citation

  • María Orduz Perdomo, 2018. "The Effect of National Expenditure in Education on Academic Performance and their Mechanisms," Investigaciones de Economía de la Educación volume 13, in: Josep-Oriol Escardíbul & Álvaro Choi (ed.), Investigaciones de Economía de la Educación 13, edition 1, volume 13, chapter 4, pages 71-94, Asociación de Economía de la Educación.
    • Handle: RePEc:aec:ieed13:13-04
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