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Welfare state generosity and student performance: Evidence from international student tests 1980-2003

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  • Falch, Torberg
  • Justina, Fischer

Abstract

Student achievement has been identified as an 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. These results are robust to a variety of model specifications, such as conditioning on educational expenditures, and alternative measures of student performance from the World Bank. Our estimates indicate that increased government size by 10 percent reduces student achievement by 0.1 standard deviations.

Suggested Citation

  • Falch, Torberg & Justina, Fischer, 2016. "Welfare state generosity and student performance: Evidence from international student tests 1980-2003," MPRA Paper 74553, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:74553
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    More about this item

    Keywords

    Student achievement; welfare state; government size; tax system; panel data; international tests; PISA;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • I2 - Health, Education, and Welfare - - Education

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