ERIC Number: ED460048
Record Type: Non-Journal
Publication Date: 2000-Jul
Reference Count: N/A
The Distribution of Mexico's Public Spending on Education. Policy Research Working Paper.
Lopez-Acevedo, Gladys; Salinas, Angel
Research has shown that education in Mexico has played a crucial role in the process of earnings formation and that returns to education have increased only in the higher levels of education and in the upper tail of the conditional earnings distribution. This paper examines the public educational expenditure patterns in the face of possible further increases in earnings inequality. Several benefit-incidence analyses are carried out bringing together two important and unique sources of information unit cost per student by state and by educational level as well as data from the households income and expenditures surveys. Some results are: (1) at national level the poorest income groups receive the bulk of primary education subsidy (federal plus state expenditures), while at higher levels of education they receive progressively smaller subsidies; and (2) government's educational expenditure pattern changes across regions. It is also shown that public expenditure at the tertiary level is more regressive than the pattern of household expenditure. A large share of public resources given to this level of education tends to favor non-poor students in urban areas. A strategy to reallocate the education public expenditures from a higher level to a lower level of instruction to favor the poor groups has to involve the development of higher educational credit markets, meaning that the government's appropriate role could be to help overcome market failures in the financial sector, which limit the availability of long-term finance for investments in higher education. This paper is part of a comprehensive work meant to build a poverty and inequality strategy for Mexico. Includes 20 figures, 3 tables, and 9 notes. (Contains 29 references.) (Author/BT)
Descriptors: Developing Nations, Economic Research, Educational Finance, Educational Research, Elementary Secondary Education, Expenditures, Foreign Countries, Government Role, Postsecondary Education, School Funds, Student Costs
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Publication Type: Reports - Research
Education Level: N/A
Authoring Institution: World Bank, Washington, DC.
Identifiers - Location: Mexico