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Poverty And The Political Economy Of Public Education Spending: Evidence From Brazil

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  • Leonardo Bursztyn

Abstract

A large body of literature has emphasized the elite capture of democratic institutions as the explanation for the low levels of spending on public education in many low-income democracies. This paper provides an alternative to that longstanding hypothesis. Motivated by new cross-country facts and evidence from Brazilian municipalities, we hypothesize that many democratic developing countries might invest less in public education spending because poor decisive voters prefer the government to allocate resources elsewhere. One possible explanation is that low-income voters could instead favor redistributive programs that increase their incomes in the short run, such as cash transfers. To test for this possibility, we design and implement an experimental survey and an incentivized choice experiment in Brazil. The findings from both interventions support our hypothesis.
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  • Leonardo Bursztyn, 2016. "Poverty And The Political Economy Of Public Education Spending: Evidence From Brazil," Journal of the European Economic Association, European Economic Association, vol. 14(5), pages 1101-1128, October.
    • Handle: RePEc:bla:jeurec:v:14:y:2016:i:5:p:1101-1128
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    File URL: http://hdl.handle.net/10.1111/jeea.2016.14.issue-5
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    JEL classification:

    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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