01755cas a2200241 a 4500 AALejournalIMF015413 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513517384 1018-5941 BD-DhAAL BD-DhAAL Nose, Manabu. Estimation of Drivers of Public Education Expenditure : Baumol's Effect Revisited / Manabu Nose. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes drivers of rising per-pupil public education spending, including Baumol's 'cost disease' effect. Higher wages paid to teachers contributed significantly to the increase in per-pupil spending over the past decades. Empirical analyses using a large dataset of advanced and developing economies show that the contribution of Baumol's effect was much smaller than impled by theory. Rather, the spending inccrease reflects rising wage premiums paid for teachers in excess of market wages, especially in middle-income countries. The strong wage premium effect suggests that institutional characteristics that govern teachers' wage setting are key determinants of education expenditure. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2015/178 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/178/001.2015.issue-178-en.xml IMF e-Library