The Impact of Cutting Education Expenditures: The Case of Mexico in the 1980s

43 Pages Posted: 4 Apr 2011

See all articles by Francisco Pérez-Arce

Francisco Pérez-Arce

Center for Economic and Social Research (CESR)

Date Written: March 30, 2011

Abstract

This paper studies the impact of expenditures on the returns to schooling within a context of dramatic reductions in public spending. The author matches data on expenditures and pupil-teacher ratios from Mexico in the 1980s with individual earnings in 2007/2008 and find that the returns to education among individuals that went to poorly funded schools are lower than among those that went to better funded ones. He determines that within-state changes in educational expenditures and pupil-teacher ratios predict changes in the returns to education.

Suggested Citation

Perez-Arce, Francisco, The Impact of Cutting Education Expenditures: The Case of Mexico in the 1980s (March 30, 2011). RAND Working Paper Series WR- 845, Available at SSRN: https://ssrn.com/abstract=1799643 or http://dx.doi.org/10.2139/ssrn.1799643

Francisco Perez-Arce (Contact Author)

Center for Economic and Social Research (CESR) ( email )

635 Downey Way
Los Angeles, CA 90089-3332
United States

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