The Distribution of Mexico's Public Spending on Education

Research shows that education has played a crucial role in raising levels of earnings and that returns to education in Mexico have increased, particularly in higher education and in the upper tail of the conditional earnings distribution. The authors examine patterns of public spending on education in the face of further increases in earnings inequality. They analyze the incidence of benefits using two sets of data: data on unit costs per student by state and by education level, and data from surveys on household income and spending. Among their findings: Nationally, the poorest income groups get most of the national and state subsidy for primary education. At higher education levels the poor get progressively smaller subsidies. For all Mexico, government spending on primary education is very progressive. In lower secondary education it is neutral. And in upper secondary education it benefits mainly the middle and upper classes. Tertiary education is strongly regressive, benefiting mainly the richest deciles and mainly in urban areas. But those government patterns vary by region. In the central region average total spending is more uniformly distributed than the national pattern. In the northern region the subsidy is progressive. Primary education is neutral and higher levels of instruction are moderately regressive. In the central region primary schooling is very progressive, while lower secondary schooling is almost neutral. Upper secondary and tertiary instruction strongly benefit the richest income deciles. In the southern region basic (primary and lower secondary) education is very progressive, upper secondary education is neutral, and tertiary education is highly regressive. In Mexico City all levels of education except primary are strongly regressive. The authors show that public spending at the tertiary level is more regressive than household spending. So much of public spending on tertiary education favors non-poor families in urban areas that to reallocate the spending so that poor students have a chance to participate would require developing credit markets for higher education. The government's role should be to help overcome market failures in the financial sector, which limit the availability of long-term financing for higher education. These failures can be corrected through student loan programs or means-tested financial aid and scholarship programs. Such programs are rarely devoid of subsidy but are preferable to the direct, cost-free provision of services because the subsidy is targeted more closely to the source of market failure.

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Main Authors: Lopez-Acevedo, Gladys, Salinas, Angel
Language:en_US
Published: World Bank, Washington, DC 2000-07
Subjects:educational financing, higher education, primary education, public expenditures, income levels, subsidies, household budgets, government spending policy, credit markets, enrolment, student loans, financial aid to students, scholarships, secondary education, addition, age group, basic education, developing countries, distance education, early childhood education, economic reforms, education expenditures, education level, education levels, education services, education system, educational expenditure, educational levels, educational services, enrollment, enrollment rate, enrollment rates, essays, families, formal education, free education, household income, instruction, investment in education, level of education, levels of education, meaning, official entry age, papers, primary enrollment, primary enrollment rates, primary school, primary schooling, primary schools, public expenditure, public primary, quality of education, repetition, rural areas, school attendance, schooling, schools, secondary level, teacher, tertiary education, training institutes, tutors, universities, urban areas,
Online Access:http://hdl.handle.net/10986/21400
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spelling dig-okr-10986214002023-11-17T16:10:16Z The Distribution of Mexico's Public Spending on Education Lopez-Acevedo, Gladys Salinas, Angel educational financing higher education primary education public expenditures income levels subsidies household budgets government spending policy credit markets enrolment student loans financial aid to students scholarships secondary education addition age group basic education developing countries distance education early childhood education economic reforms education expenditures education level education levels education services education system educational expenditure educational levels educational services enrollment enrollment rate enrollment rates essays families formal education free education household income instruction investment in education level of education levels of education meaning official entry age papers primary education primary enrollment primary enrollment rates primary school primary schooling primary schools public expenditure public primary quality of education repetition rural areas school attendance schooling schools secondary education secondary level teacher tertiary education training institutes tutors universities urban areas Research shows that education has played a crucial role in raising levels of earnings and that returns to education in Mexico have increased, particularly in higher education and in the upper tail of the conditional earnings distribution. The authors examine patterns of public spending on education in the face of further increases in earnings inequality. They analyze the incidence of benefits using two sets of data: data on unit costs per student by state and by education level, and data from surveys on household income and spending. Among their findings: Nationally, the poorest income groups get most of the national and state subsidy for primary education. At higher education levels the poor get progressively smaller subsidies. For all Mexico, government spending on primary education is very progressive. In lower secondary education it is neutral. And in upper secondary education it benefits mainly the middle and upper classes. Tertiary education is strongly regressive, benefiting mainly the richest deciles and mainly in urban areas. But those government patterns vary by region. In the central region average total spending is more uniformly distributed than the national pattern. In the northern region the subsidy is progressive. Primary education is neutral and higher levels of instruction are moderately regressive. In the central region primary schooling is very progressive, while lower secondary schooling is almost neutral. Upper secondary and tertiary instruction strongly benefit the richest income deciles. In the southern region basic (primary and lower secondary) education is very progressive, upper secondary education is neutral, and tertiary education is highly regressive. In Mexico City all levels of education except primary are strongly regressive. The authors show that public spending at the tertiary level is more regressive than household spending. So much of public spending on tertiary education favors non-poor families in urban areas that to reallocate the spending so that poor students have a chance to participate would require developing credit markets for higher education. The government's role should be to help overcome market failures in the financial sector, which limit the availability of long-term financing for higher education. These failures can be corrected through student loan programs or means-tested financial aid and scholarship programs. Such programs are rarely devoid of subsidy but are preferable to the direct, cost-free provision of services because the subsidy is targeted more closely to the source of market failure. 2015-02-03T17:46:37Z 2015-02-03T17:46:37Z 2000-07 http://hdl.handle.net/10986/21400 en_US Policy Research Working Paper;No. 2404 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo application/pdf World Bank, Washington, DC
institution Banco Mundial
collection DSpace
country Estados Unidos
countrycode US
component Bibliográfico
access En linea
databasecode dig-okr
tag biblioteca
region America del Norte
libraryname Biblioteca del Banco Mundial
language en_US
topic educational financing
higher education
primary education
public expenditures
income levels
subsidies
household budgets
government spending policy
credit markets
enrolment
student loans
financial aid to students
scholarships
secondary education
addition
age group
basic education
developing countries
distance education
early childhood education
economic reforms
education expenditures
education level
education levels
education services
education system
educational expenditure
educational levels
educational services
enrollment
enrollment rate
enrollment rates
essays
families
formal education
free education
household income
instruction
investment in education
level of education
levels of education
meaning
official entry age
papers
primary education
primary enrollment
primary enrollment rates
primary school
primary schooling
primary schools
public expenditure
public primary
quality of education
repetition
rural areas
school attendance
schooling
schools
secondary education
secondary level
teacher
tertiary education
training institutes
tutors
universities
urban areas
educational financing
higher education
primary education
public expenditures
income levels
subsidies
household budgets
government spending policy
credit markets
enrolment
student loans
financial aid to students
scholarships
secondary education
addition
age group
basic education
developing countries
distance education
early childhood education
economic reforms
education expenditures
education level
education levels
education services
education system
educational expenditure
educational levels
educational services
enrollment
enrollment rate
enrollment rates
essays
families
formal education
free education
household income
instruction
investment in education
level of education
levels of education
meaning
official entry age
papers
primary education
primary enrollment
primary enrollment rates
primary school
primary schooling
primary schools
public expenditure
public primary
quality of education
repetition
rural areas
school attendance
schooling
schools
secondary education
secondary level
teacher
tertiary education
training institutes
tutors
universities
urban areas
spellingShingle educational financing
higher education
primary education
public expenditures
income levels
subsidies
household budgets
government spending policy
credit markets
enrolment
student loans
financial aid to students
scholarships
secondary education
addition
age group
basic education
developing countries
distance education
early childhood education
economic reforms
education expenditures
education level
education levels
education services
education system
educational expenditure
educational levels
educational services
enrollment
enrollment rate
enrollment rates
essays
families
formal education
free education
household income
instruction
investment in education
level of education
levels of education
meaning
official entry age
papers
primary education
primary enrollment
primary enrollment rates
primary school
primary schooling
primary schools
public expenditure
public primary
quality of education
repetition
rural areas
school attendance
schooling
schools
secondary education
secondary level
teacher
tertiary education
training institutes
tutors
universities
urban areas
educational financing
higher education
primary education
public expenditures
income levels
subsidies
household budgets
government spending policy
credit markets
enrolment
student loans
financial aid to students
scholarships
secondary education
addition
age group
basic education
developing countries
distance education
early childhood education
economic reforms
education expenditures
education level
education levels
education services
education system
educational expenditure
educational levels
educational services
enrollment
enrollment rate
enrollment rates
essays
families
formal education
free education
household income
instruction
investment in education
level of education
levels of education
meaning
official entry age
papers
primary education
primary enrollment
primary enrollment rates
primary school
primary schooling
primary schools
public expenditure
public primary
quality of education
repetition
rural areas
school attendance
schooling
schools
secondary education
secondary level
teacher
tertiary education
training institutes
tutors
universities
urban areas
Lopez-Acevedo, Gladys
Salinas, Angel
The Distribution of Mexico's Public Spending on Education
description Research shows that education has played a crucial role in raising levels of earnings and that returns to education in Mexico have increased, particularly in higher education and in the upper tail of the conditional earnings distribution. The authors examine patterns of public spending on education in the face of further increases in earnings inequality. They analyze the incidence of benefits using two sets of data: data on unit costs per student by state and by education level, and data from surveys on household income and spending. Among their findings: Nationally, the poorest income groups get most of the national and state subsidy for primary education. At higher education levels the poor get progressively smaller subsidies. For all Mexico, government spending on primary education is very progressive. In lower secondary education it is neutral. And in upper secondary education it benefits mainly the middle and upper classes. Tertiary education is strongly regressive, benefiting mainly the richest deciles and mainly in urban areas. But those government patterns vary by region. In the central region average total spending is more uniformly distributed than the national pattern. In the northern region the subsidy is progressive. Primary education is neutral and higher levels of instruction are moderately regressive. In the central region primary schooling is very progressive, while lower secondary schooling is almost neutral. Upper secondary and tertiary instruction strongly benefit the richest income deciles. In the southern region basic (primary and lower secondary) education is very progressive, upper secondary education is neutral, and tertiary education is highly regressive. In Mexico City all levels of education except primary are strongly regressive. The authors show that public spending at the tertiary level is more regressive than household spending. So much of public spending on tertiary education favors non-poor families in urban areas that to reallocate the spending so that poor students have a chance to participate would require developing credit markets for higher education. The government's role should be to help overcome market failures in the financial sector, which limit the availability of long-term financing for higher education. These failures can be corrected through student loan programs or means-tested financial aid and scholarship programs. Such programs are rarely devoid of subsidy but are preferable to the direct, cost-free provision of services because the subsidy is targeted more closely to the source of market failure.
topic_facet educational financing
higher education
primary education
public expenditures
income levels
subsidies
household budgets
government spending policy
credit markets
enrolment
student loans
financial aid to students
scholarships
secondary education
addition
age group
basic education
developing countries
distance education
early childhood education
economic reforms
education expenditures
education level
education levels
education services
education system
educational expenditure
educational levels
educational services
enrollment
enrollment rate
enrollment rates
essays
families
formal education
free education
household income
instruction
investment in education
level of education
levels of education
meaning
official entry age
papers
primary education
primary enrollment
primary enrollment rates
primary school
primary schooling
primary schools
public expenditure
public primary
quality of education
repetition
rural areas
school attendance
schooling
schools
secondary education
secondary level
teacher
tertiary education
training institutes
tutors
universities
urban areas
author Lopez-Acevedo, Gladys
Salinas, Angel
author_facet Lopez-Acevedo, Gladys
Salinas, Angel
author_sort Lopez-Acevedo, Gladys
title The Distribution of Mexico's Public Spending on Education
title_short The Distribution of Mexico's Public Spending on Education
title_full The Distribution of Mexico's Public Spending on Education
title_fullStr The Distribution of Mexico's Public Spending on Education
title_full_unstemmed The Distribution of Mexico's Public Spending on Education
title_sort distribution of mexico's public spending on education
publisher World Bank, Washington, DC
publishDate 2000-07
url http://hdl.handle.net/10986/21400
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