6533b85ffe1ef96bd12c25ae

RESEARCH PRODUCT

The Effect of Public Education Expenditure on Shadow Economy: A Cross-Country Analysis

Maria Berrittella

subject

Labour economicsHigher educationbusiness.industryControl variablePublic policyshadow economy.EducationEconomyNegative relationshipSettore SECS-P/03 - Scienza Delle FinanzeEconomicsEndogeneitybusinessPublic educationGeneral Economics Econometrics and FinanceInclusion (education)government expenditureShadow (psychology)

description

AbstractThis paper empirically examines whether devoting more resources to education can reduce the size of the shadow economy on a cross-section of countries. The findings show a negative relationship between public education expenditure and the size of the shadow economy, which is robust to the inclusion of different proxies for the control variables, a large set of policy variables, regional differences and endogeneity. The findings also emphasize the role of education, suggesting that public policies devoted to higher education level imply a decreasing effect on the shadow economy.

yearjournalcountryeditionlanguage
2015-09-24
10.1080/10168737.2015.1081259http://hdl.handle.net/10447/226679