IDEAS home Printed from https://ideas.repec.org/a/kea/keappr/ker-20150630-31-1-05.html
   My bibliography  Save this article

The Effect of Population Aging on Local School Subsidies in Korea

Author

Listed:
  • Sun Go

    (Chung-Ang University)

Abstract

The recent growth in local school subsidies in Korea offers a chance to test the effect of population aging on public education expenditure. In the existing literature, the intergenerational conflict model suggests a negative effect, although a growing number of studies are finding theoretical and empirical evidence of a positive effect. After controlling for the district fixed effect, the analysis of the Korean data shows that the elderly population share has a significant positive effect on the local school subsidy per pupil. This result is robust after instrumenting the real proportion of the elderly population by the predicted proportion, assuming no population mobility, to handle the possible bias caused by Tiebout sorting.

Suggested Citation

  • Sun Go, 2015. "The Effect of Population Aging on Local School Subsidies in Korea," Korean Economic Review, Korean Economic Association, vol. 31, pages 121-144.
    • Handle: RePEc:kea:keappr:ker-20150630-31-1-05
    as

    Download full text from publisher

    File URL: http://keapaper.kea.ne.kr/RePEc/kea/keappr/KER-20150630-31-1-05.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Eric J. Brunner & Stephen L. Ross, 2009. "Is the Median Voter Decisive? Evidence of 'Ends Against the Middle' From Referenda Voting Patterns," Working papers 2009-02, University of Connecticut, Department of Economics, revised May 2010.
    2. Cattaneo, M. Alejandra & Wolter, Stefan C., 2009. "Are the elderly a threat to educational expenditures?," European Journal of Political Economy, Elsevier, vol. 25(2), pages 225-236, June.
    3. Brunner, Eric J. & Ross, Stephen L., 2010. "Is the median voter decisive? Evidence from referenda voting patterns," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 898-910, December.
    4. Brunner, Eric & Balsdon, Ed, 2004. "Intergenerational conflict and the political economy of school spending," Journal of Urban Economics, Elsevier, vol. 56(2), pages 369-388, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luiz Mello & Simone Schotte & Erwin R. Tiongson & Hernan Winkler, 2017. "Greying the Budget: Ageing and Preferences over Public Policies," Kyklos, Wiley Blackwell, vol. 70(1), pages 70-96, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Brunner, Eric J. & Johnson, Erik B., 2016. "Intergenerational conflict and the political economy of higher education funding," Journal of Urban Economics, Elsevier, vol. 91(C), pages 73-87.
    2. Brunner, Eric J. & Ross, Stephen L. & Simonsen, Becky K., 2015. "Homeowners, renters and the political economy of property taxation," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 38-49.
    3. Maennig, Wolfgang & Ahlfeldt, Gabriel M. & Steenbeck, Malte, 2016. "Après nous le déluge? Direct democracy and intergenerational conflicts in aging societies," VfS Annual Conference 2016 (Augsburg): Demographic Change 145793, Verein für Socialpolitik / German Economic Association.
    4. Tae Ho Eom & William Duncombe & Phuong Nguyen-Hoang & John Yinger, 2014. "The Unintended Consequences of Property Tax Relief: New York’s STAR Program," Education Finance and Policy, MIT Press, vol. 9(4), pages 446-480, October.
    5. Klien, Michael & Melki, Mickael & Pickering, Andrew, 2021. "Voter turnout and intergenerational redistribution," Journal of Comparative Economics, Elsevier, vol. 49(2), pages 603-626.
    6. Dennis Epple & Richard E. Romano & Miguel Urquiola, 2017. "School Vouchers: A Survey of the Economics Literature," Journal of Economic Literature, American Economic Association, vol. 55(2), pages 441-492, June.
    7. Borck, Rainald & Wrohlich, Katharina, 2011. "Preferences for childcare policies: Theory and evidence," European Journal of Political Economy, Elsevier, vol. 27(3), pages 436-454, September.
    8. Gabriel M. Ahlfeldt & Wolfgang Maennig & Malte Steenbeck, 2020. "Direct democracy and intergenerational conflicts in ageing societies," Journal of Regional Science, Wiley Blackwell, vol. 60(1), pages 129-155, January.
    9. Rajashri Chakrabarti & Max Livingston & Joydeep Roy, 2014. "Did Cuts in State Aid During the Great Recession Lead to Changes in Local Property Taxes?," Education Finance and Policy, MIT Press, vol. 9(4), pages 383-416, October.
    10. Luiz Mello & Simone Schotte & Erwin R. Tiongson & Hernan Winkler, 2017. "Greying the Budget: Ageing and Preferences over Public Policies," Kyklos, Wiley Blackwell, vol. 70(1), pages 70-96, February.
    11. Rattsø, Jørn & Sørensen, Rune J., 2010. "Grey power and public budgets: Family altruism helps children, but not the elderly," European Journal of Political Economy, Elsevier, vol. 26(2), pages 222-234, June.
    12. Buckley, Neil & Cuff, Katherine & Hurley, Jeremiah & Mestelman, Stuart & Thomas, Stephanie & Cameron, David, 2015. "Support for public provision of a private good with top-up and opt-out: A controlled laboratory experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 111(C), pages 177-196.
    13. Epple, Dennis & Romano, Richard, 2014. "On the political economy of educational vouchers," Journal of Public Economics, Elsevier, vol. 120(C), pages 62-73.
    14. Saito, Hitoshi, 2017. "The effects of population ageing on public education in Japan : A reinterpretation using micro data," MPRA Paper 79848, University Library of Munich, Germany.
    15. Lang, Corey & Pearson-Merkowitz, Shanna, 2022. "Aggregate data yield biased estimates of voter preferences," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    16. Antti Saastamoinen & Mika Kortelainen, 2020. "When Does Money Stick in Education? Evidence from A Kinked Grant Rule," Education Finance and Policy, MIT Press, vol. 15(4), pages 708-735, Fall.
    17. Vlandas, Tim, 2022. "Grey power and Economic Performance," SocArXiv d3ybr, Center for Open Science.
    18. Marco Portmann & David Stadelmann, 2013. "Testing the Median Voter Model and Moving Beyond its Limits: Do Characteristics of Politicians Matter?," CREMA Working Paper Series 2013-05, Center for Research in Economics, Management and the Arts (CREMA).
    19. Nguyen-Hoang, Phuong, 2013. "Tax Limit Repeal and School Spending," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(1), pages 117-148, March.
    20. Sørensen, Rune J., 2013. "Does aging affect preferences for welfare spending? A study of peoples' spending preferences in 22 countries, 1985–2006," European Journal of Political Economy, Elsevier, vol. 29(C), pages 259-271.

    More about this item

    Keywords

    Population Aging; Local School Subsidy; Public Education Finance; Demographic Structure;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kea:keappr:ker-20150630-31-1-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: KEA (email available below). General contact details of provider: https://edirc.repec.org/data/keaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.