Differences in the division of education responsibilities between tiers of government and in the degree of autonomy the latter have to take decisions and raise their own revenues could imply differences in the level of efficiency with which these responsibilities are carried out. The aim of this study is, therefore, to analyze the effects of decentralization on the efficiency of educational policy, by examining the way in which different decentralization structures can have differential effects and by exploring the channels via which decentralization can affect educational outcomes. To achieve this, I first analyze the effects of a partial fiscal decentralization reform introduced in Spain at the beginning of the eighties, when educational responsibilities were devolved to regions that were not, however, granted any decision-making power for raising their own taxes. I believe that this study, reported in Chapter 2, makes a relevant contribution to the scarce empirical evidence gathered to date about the effects of decentralization on educational outcomes. First, this is the first study to analyze these effects in the context of a partial fiscal decentralization, which enables me to provide empirical evidence about one of the main points of debate in the fiscal federalism literature. Second, the way in which education policy has been decentralized in Spain, with a set of regions receiving educational powers at the beginning of the eighties and the remaining regions having to wait until the end of the nineties to receive the same powers, provides a unique benchmark against which to conduct a consistent identification of the effects of decentralization. Finally, I believe that the conclusions that can be drawn from this study are especially relevant at a time in which a process of recentralization of decision-making autonomy in the education sector in Spain is being undertaken. Second, I analyze the effects of decentralization on educational outcomes under different decentralization structures. That is, I analyze ...
[eng]Differences in the division of education responsibilities between tiers of government and in the degree of autonomy the latter have to take decisions and raise their own revenues could imply differences in the level of efficiency with which these responsibilities are carried out. The aim of this study is, therefore, to analyze the effects of decentralization on the efficiency of educational policy, by examining the way in which different decentralization structures can have differential effects and by exploring the channels via which decentralization can affect educational outcomes. To achieve this, I first analyze the effects of a partial fiscal decentralization reform introduced in Spain at the beginning of the eighties, when educational responsibilities were devolved to regions that were not, however, granted any decision-making power for raising their own taxes. I believe that this study, reported in Chapter 2, makes a relevant contribution to the scarce empirical evidence gathered to date about the effects of decentralization on educational outcomes. First, this is the first study to analyze these effects in the context of a partial fiscal decentralization, which enables me to provide empirical evidence about one of the main points of debate in the fiscal federalism literature. Second, the way in which education policy has been decentralized in Spain, with a set of regions receiving educational powers at the beginning of the eighties and the remaining regions having to wait until the end of the nineties to receive the same powers, provides a unique benchmark against which to conduct a consistent identification of the effects of decentralization. Finally, I believe that the conclusions that can be drawn from this study are especially relevant at a time in which a process of recentralization of decision-making autonomy in the education sector in Spain is being undertaken. Second, I analyze the effects of decentralization on educational outcomes under different decentralization structures. That is, I analyze whether different degrees of subnational government autonomy, both on the expenditure and revenue sides, have the expected differential effects. The analysis in Chapter 3 contrasts with analyses reported in previous studies, since it draws on cross-national evidence to analyse the way in which different structures of expenditure and revenue decentralization have a differential impact on the efficiency of public education policies, a question hitherto unaddressed in this branch of literature. However, these studies tell us nothing about the process via which the educational outcomes might vary depending on whether a country operates a decentralized or a centralized system. In Chapter 4 I provide a number of insights into this question, by analyzing the role of teacher quality in a decentralization process, that is, how teacher quality might be affected by decentralization and the extent to which this effect explains the effects of decentralization on educational attainment. The relationship between decentralization and teacher quality has received little attention in the literature and, to the best of my knowledge, the study in chapter 4 is the first attempt to empirically analyze it. In addition to the empirical analysis, an effort has been made in Chapter 4 to summarize the arguments that underpin the relationship between decentralization and teacher quality. Finally, this is also the first study that seeks to analyze the process via which decentralization might affect educational attainment. The methodology used in this study to address this question, which decomposes the total effect of decentralization into a direct effect and an indirect effect via teacher quality has not been applied before in the economics of education empirical literature, which has always tended to focus on the estimation of reduced-form equations of educational attainment. Here, however, I estimate a structural model in which teacher quality variables are also considered endogenous variables. The three studies reveal that the effects of decentralization on the outcomes of the educational system are positive and, in line with theoretical prescriptions, that these effects depend on the autonomy of subnational governments and on the level of government awarded educational competences. Additionally, an important share of the overall effect of decentralization on educational outcomes is mediated through its effects on teacher quality.
This paper uses cross-national data to examine the effects of diferent dimensions of decentralization on the efficiency of educational policies in OECD countries. The results show that the autonomy of subnational governments, both on the expenditure and revenue sides of their activities, is what really matters in determining the effect of decentralization on educational outcomes. The decision-making autonomy of subnational governments with regard to the regulation and management of the educational system has a significant and positive effect on educational attainment, though this varies with the degree to which subnational governments are held accountable for their taxing decisions. These results are robust to the different analyses conducted, thus corroborating that they are not driven by the potential endogeneity of decentralization policies.
[cat] Diversos arguments derivats de la teoria del federalisme fiscal suggereixen que la descentralització pot portar a majors nivells d'eficiència en la provisió de béns i serveis publics. L'objectiu d'aquest estudi és contrastar aquesta hipòtesi mitjançant l'avaluació dels efectes de la descentralització sobre els resultats educatius a Espanya. Els resultats educatius es mesuren d'acord amb la taxa de supervivència, que es defineix com el nombre d'estudiants que es matricula en educació secundària no obligatòria en relació als alumnes matriculats a l'últim curs d'educació obligatòria durant l'any acadèmic anterior. ; [eng] Several arguments derived from fiscal federalism theory suggest that decentralization may lead to improved levels of efficiency in the provision of public goods and services. The aim of this study is to examine this hypothesis by evaluating the effects of decentralization on educational outcomes in Spain. These are measured using a survival rate, defined as the ratio between the number of students who enrolled in upper-secondary (noncompulsory) education and the number of students enrolled in the final year of lower-secondary (compulsory) education during the previous academic year.
Several arguments derived from fiscal federalism theory suggest that decentralization may lead to improved levels of efficiency in the provision of public goods and services. The aim of this study is to examine this hypothesis by evaluating the effects of decentralization on educational outcomes in Spain. These are measured using a survival rate, defined as the ratio between the number of students who enrolled in upper-secondary (non-compulsory) education and the number of students enrolled in the final year of lower-secondary (compulsory) education during the previous academic year. We use a panel data set comprising the 50 provinces of Spain for the years 1978 to 2005, a period that covers the entire process of decentralization. Since education competences were devolved to the regions at different points in time, we can estimate the effects of these reforms by applying the differences-in-differences method and by using the non-decentralized autonomous regions as the comparison group. We find that decentralization in Spain had a positive impact on educational outcomes when pupils on vocational training programmes are not taken into account, and that the richer the region is the more marked the effect becomes. However, this improvement in educational outcomes is achieved at the expense of enrolment in vocational training programmes. These effects might reflect a better match between population preferences and educational policies consequent upon decentralization.
