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Title:Does a generous welfare state crowd out student effort? Panel data evidence from international student tests PDF Logo
Authors:Falch, Torberg
Fischer, Justina A. V.
Issue Date:2008
Series/Report no.:SSE/EFI Working Paper Series in Economics and Finance 694
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.
Subjects:achievement
welfare state
panel data
PISA
TIMSS
JEL:C33
H20
I20
Document Type:Working Paper
Appears in Collections:SSE/EFI Working Paper Series in Economics and Finance, EFI - The Economic Research Institute, Stockholm School of Economics

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