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Impact of Decentralization of Basic and Teaching Degree Education in Mexico on Teachers’ Payroll Expenses in Federal Entities, 1999-2004

Author

Listed:
  • Pablo Villanueva Sánchez

    (Estudiante de doctorado en Economía, Universidad de Stanford. Palo Alto, CA. Estados Unidos.)

Abstract

The education decentralization in 1992 modified the negotiation structure of teachers’ salaries between government authorities and the teachers’ unions. In 1998 a federal fund called FAEB was created to help the states finance education. This document explores the effects of the new negotiation structure and the effects of the distribution of FAEB among the states on expenditures on teachers’ salaries. It is found that states with a high percentage of state teachers previous to decentralization provide teachers with lower salary increases. This is mainly because such states face higher education costs, due to the distribution rules of FAEB.

Suggested Citation

  • Pablo Villanueva Sánchez, 2010. "Impact of Decentralization of Basic and Teaching Degree Education in Mexico on Teachers’ Payroll Expenses in Federal Entities, 1999-2004," Economía Mexicana NUEVA ÉPOCA, CIDE, División de Economía, vol. 0(2), pages 231-270, July-Dece.
    • Handle: RePEc:emc:ecomex:v:19:y:2010:i:2:p:231-270
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    More about this item

    Keywords

    education expenditures; teachers’ payroll; Federal Transfers for Basic and Teachers’ Education; decentralization of education.;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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