The Impact of Cutting Education Expenditures

The Case of Mexico in the 1980s

Francisco Perez-Arce

Published Mar 23, 2011

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.

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RAND Style Manual
Perez-Arce, Francisco, The Impact of Cutting Education Expenditures: The Case of Mexico in the 1980s, RAND Corporation, WR-845, 2011. As of September 23, 2024: https://www.rand.org/pubs/working_papers/WR845.html
Chicago Manual of Style
Perez-Arce, Francisco, The Impact of Cutting Education Expenditures: The Case of Mexico in the 1980s. Santa Monica, CA: RAND Corporation, 2011. https://www.rand.org/pubs/working_papers/WR845.html.
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