SSE/EFI Working Paper Series in Economics and Finance
Does a generous welfare state crowd out student effort? Panel data evidence from international student tests.
() and Justina AV Fischer
Abstract: Student achievement has been identified as an important
contributor to economic growth. This paper investigates the hypothesis that
redistributive government activities have a negative effect on investment
in human capital using data from international comparative student
achievement tests in Mathematics and Science for over 70 countries during
the period 1980 to 2003. In fixed effects models, both the effects of
government consumption and government social expenditures on student
achievement are negative and seem to be robust across different model
specifications. The effect of social expenditures appears to be driven by
spending on pensions and active labor market policies.
Keywords: achievement; welfare state; panel data; PISA; TIMSS; (follow links to similar papers)
JEL-Codes: C33; H20; I20; (follow links to similar papers)
30 pages, March 19, 2008
Version: March 2008
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