Economics, Econometrics and Finance
4 years ago

Big Government, Low Grades: Welfare State Hurts Student Achievement

SSRN Electronic Journal
Does a Generous Welfare State Crowd Out Student Achievement? Panel Data Evidence from International Student Tests
Torberg Falch, Justina A. V. Fischer

Paper Summary

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The article examines how government spending affects student achievement in Math and Science tests. They found that higher government consumption and social expenditures, as well as a more progressive income tax system, lead to lower student performance. Increasing government size by 10 percent can reduce student achievement by 0.1 standard deviations.