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Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis

  • Baskaran, Thushyanthan
  • Hessami, Zohal

This paper studies the relationship between globalization and the composition of public education expenditures. The theoretical model is embedded in a median voter setting and is based on the assumption that globalization leads to lower tax revenues as well as an increase in the relative wage of high-skilled workers. Overall, the theoretical discussion suggests that globalization induces a shift from primary to tertiary education expenditures, which is backed up by empirical evidence from dynamic panel estimations for 121 countries over the 1992 - 2006 period. A possible implication of the shift in educational priorities towards higher education is an increase in income inequality.

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File URL: http://mpra.ub.uni-muenchen.de/25750/1/MPRA_paper_25750.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25750.

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Date of creation: 15 Sep 2010
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Handle: RePEc:pra:mprapa:25750
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