Working Paper Series
IFAU - Institute for Evaluation of Labour Market and Education Policy
Åsa Ahlin and Eva Mörk
Effects of decentralization on school resources
Abstract: Sweden has undertaken major national reforms of its
schooling sector which, consequently, has been classified as one of the
most decentralized ones in the OECD. This paper investigates the extent to
which local tax base, grants, preferences and structural characteristics
affected local schooling resources as decentralization took place. We use
municipal data for the period 1989–95 which covers the key reform years
without confounding decentralization with institutional changes after 1995.
The main arguments against decentralization are not supported by our
findings. First, school spending as well as teacher density is found to be
more equally distributed across municipalities following decentralization.
Second, local tax capacity does not influence schooling resources more in
the decentralized regime than in the centralized regime. We also find that
the form in which grants are distributed matter: Targeted grants have a
significant positive impact on resources while general grants have not.
Keywords: School resources; school finance reform; decentralization; (follow links to similar papers)
JEL-Codes: H40; H52; H70; (follow links to similar papers)
50 pages, February 12, 2005
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- This paper is published as:
Ahlin, Åsa and Eva Mörk, (2008), 'Effects of decentralization on school resources', Economics of Education Review, Vol. 23, No. 3, pages 276-284
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