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Long-run effects on poverty of public expenditure in education

Author

Listed:
  • Marisa Hidalgo Hidalgo

    (Universidad de Alicante)

  • Iñigo Iturbe-Ormaetxe Kortajarene

    (Universidad de Alicante)

Abstract

Household characteristics may have long-run effects on individual outcomes in adulthood. For instance, individuals who lived when young in households experiencing financial problems are more likely to be poor when adults. Public intervention in education is one of the most important means by which governments try to reduce these effects and to promote equality of opportunity. The objective of this paper is to check whether public expenditure in education has an effect in reducing the probability of being poor when adult, and to what extent. Our main finding is that public expenditure in primary education has a strong long-run effect on reducing incidence of poverty in adulthood. We also find that this effect is concentrated mainly among individuals who have parents with a low level of education.

Suggested Citation

  • Marisa Hidalgo Hidalgo & Iñigo Iturbe-Ormaetxe Kortajarene, 2014. "Long-run effects on poverty of public expenditure in education," Working Papers. Serie AD 2014-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasad:2014-06
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    References listed on IDEAS

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    Cited by:

    1. Tudorache, Maria-Daniela, 2021. "Development in Romania during the post-crisis period: A human, economic and social perspective," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 28(3(628)), pages 15-32.
    2. Marisa Hidalgo-Hidalgo, 2019. "Childhood-Related Policies and Adult Poverty: Evidence from Some European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(1), pages 191-217, July.
    3. Marisa Hidalgo-Hidalgo & Iñigo Iturbe-Ormaetxe, 2018. "Long-run effects of public expenditure on poverty," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(1), pages 1-22, March.
    4. Nyarkoh, James Bright, 2016. "Modelling Government Expenditure-Poverty Nexus for Ghana," MPRA Paper 75727, University Library of Munich, Germany.
    5. Maria-Daniela TUDORACHE, 2021. "Development in Romania during the post-crisis period: A human, economic and social perspective," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(628), A), pages 15-32, Autumn.

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    More about this item

    Keywords

    public expenditure in education; poverty rate; intergenerational transmission of poverty.;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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