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Does a Generous Welfare State Crowd out Student Achievement? Panel Data Evidence from International Student Tests

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Author Info
Torberg Falch ()
Justina A.V. Fischer ()

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Abstract

Student achievement has been identified as 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. We report results from a variety of model specifications and social expenditure components, and our best estimate indicates that increased government size by 10 percent reduces student achievement by 0.1 standard deviations.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2383.

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Date of creation: 2008
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Handle: RePEc:ces:ceswps:_2383

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Related research
Keywords: student achievement; welfare state; government size; tax system; panel data; international tests;

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Find related papers by JEL classification:
C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data
H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
I20 - Health, Education, and Welfare - - Education - - - General

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    Other versions:
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    Other versions:
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  16. Laibson, David, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, MIT Press, vol. 112(2), pages 443-77, May.
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  18. Jacobs, Bas, 2007. "Real options and human capital investment," Labour Economics, Elsevier, vol. 14(6), pages 913-925, December. [Downloadable!] (restricted)
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    Other versions:
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    Other versions:
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