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Government Expenditure, Education, and Productivity in the European Union: Effects on Economic Growth

Author

Listed:
  • Coronel Vicente J.

    (Department of Economics, Universidad de Castilla‐La Mancha, Ciudad Real, Spain)

  • Díaz-Roldán Carmen

    (Department of Economics, Universidad de Castilla‐La Mancha, Ciudad Real, Spain)

Abstract

In this article, we will analyse the effects of public spending on education on productivity, wages, and growth at European Union level. We are trying to find out to what extent education expenditures and human capital contribute to improving productivity, achieving higher wages, and enhancing the standard of living of the population, as measured by per capita growth. Our results do not show a clear and direct relationship between public expenditure on education and productivity, but an indirect relationship through the acquisition of a higher level of human capital and technological skills, which leads to output increases.

Suggested Citation

  • Coronel Vicente J. & Díaz-Roldán Carmen, 2024. "Government Expenditure, Education, and Productivity in the European Union: Effects on Economic Growth," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 18(1), pages 1-24.
    • Handle: RePEc:bpj:econoa:v:18:y:2024:i:1:p:24:n:1027
    DOI: 10.1515/econ-2022-0081
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    More about this item

    Keywords

    government expenditure; education; human capital; productivity;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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