The effect of reduced education spending on students’ proficiency in Brazil: evidence for the 2014–2016 recession
DOI:
https://doi.org/10.11606/1980-5330/ea190681Keywords:
educational performance, spending in education, economic recessionAbstract
This paper investigates the effect of municipal educational expenditure on the performance in test scores of elementary education (5th and 9th grades) in Brazilian public schools. To identify a causal effect, we analyse the impact of the Brazilian Recession from 2014 to 2016 on municipal educational spending. We document a negative effect on educational performance in math and language, in both grades, in municipalities more exposed to the recession shock. The potential mechanism is associated with reduced school quality, represented by teacher dissatisfaction, larger workload, and problems related to school management. This paper shows that Brazil’s recurrent recession shocks adversely affect human capital accumulation.
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