Scandinavian Working Papers in Economics

Working Paper Series,
Uppsala University, Department of Economics

No 2007:3: The Long Term Effect of Education Spending Decentralization on Human Capital in Spain

Ouarda Merrouche ()
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Ouarda Merrouche: Department of Economics, Postal: Uppsala University, P.O. Box 513, SE-751 20 Uppsala, Sweden

Abstract: In 1980, seven out of the seventeen Spanish regions were devolved education spending responsibility. Using a difference-in-differences approach, which I show to be particularly credible in this context, I evaluate the long term effect of this reform on human capital. I find no robust evidence to corroborate the theoretically predicted benefits of decentralization.

Keywords: Decentralization; Education; Difference-in-differences estimator

JEL-codes: E61; E65

15 pages, January 15, 2007

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