What does this research mean for the field?

Tertiary public education expenditure indirectly reduces income inequality by improving educational quality, whereas spending at pre-primary, primary, and secondary levels in mature education systems exhibits weak or negative associations with learning outcomes. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

The aim is to explore how the composition of public education expenditure affects income inequality through educational quality and skill formation.

June 6, 2026EconomiesOpen Access

Education Expenditure Composition, Educational Quality, and Income Inequality: Evidence from 13 OECD Countries

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Authors

BSBrang SanChiang Mai University PMParavee ManeejukChiang Mai University WYWoraphon YamakaChiang Mai University

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Implication

Examines the link between education expenditure composition and income inequality, highlighting educational quality's role.

Key Points

The aim is to explore how the composition of public education expenditure affects income inequality through educational quality and skill formation.
Analyzed panel data from OECD countries from 2000 to 2022.
Employed a simultaneous equation framework estimated using Three-Stage Least Squares (3SLS).
Applied an instrumental-variable approach based on lagged expenditure to address endogeneity concerns.
Tertiary education expenditure positively affects educational quality but not directly linked to income inequality.
Pre-primary, primary, and secondary education spending shows weak or negative effects on learning outcomes, sometimes increasing income inequality.
Educational quality is a key factor connecting education spending to income distribution, with no significant short-run relationship to economic growth.

Cite This Study

San et al. (2026) studied this question.

synapsesocial.com/papers/6a23baa771a5da9775e76550 https://doi.org/10.3390/economies14060206

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Education Expenditure Composition, Educational Quality, and Income Inequality: Evidence from 13 OECD Countries

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Cite This Study

Education Expenditure Composition, Educational Quality, and Income Inequality: Evidence from 13 OECD Countries

Discussion

Member takes

Implication

Key Points

Cite This Study

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