THE DETERMINANTS OF EXPENDITURES ON EDUCATION IN BRAZIL

Abstract

The aim of this paper is to examine the determinants of education expenditures in Brazil. We estimate discrete models in which families decide whether or not to enroll their children in a private or public school. We also model de education expenditures using censored regression models. We use micro data from the PNADs between 2001 and 2006 and from POF 2002/2003. The paper concludes that the main determinants of enrollments in private schools are mother’s education, family income, supply of public schools, cost of education and state of residence. With respect to expenditures, the main determinant is per capita family income, with the sensitivity of spending to changes in income being higher in the fundamental education than in the high school.