ESSAYS ON SCHOOL SPENDING AND EDUCATIONAL OUTCOMES: LITERATURE REVIEW AND EVIDENCE OF EFFECTS ON BASIC EDUCATION IN BRAZIL
education funding; school spending; educational outcomes; systematic review; difference-in-differences
Given educational inequality, which reflects social disparities in Brazil, funding policies and the allocation of financial resources emerge as relevant factors in the context of basic education. Investigating how these resources are used, as well as their effects on educational outcomes, is essential. The objective of this study is to evaluate the effects of these policies and financial resources on the structure of basic education in Brazil. To this end, the thesis is organized into three essays. Essay 1 conducts a systematic review of the literature on the relationship between school spending and educational performance, covering 45 studies from various databases published between 2015 and 2022. The findings indicate positive effects of spending on academic performance, especially for disadvantaged groups, although most analyses focus on developed countries. The review suggests that studies in less developed contexts, such as Brazil, may lead to different implications. Essay 2 investigates the effects of the new Fundeb, implemented in 2021, on municipal educational indicators in Brazil, using a simulated difference-in-differences model with data from 2017 to 2023. Treating the policy as an exogenous event, municipalities were classified as big winners, big losers, and neutral, based on their net Fundeb balance. The results show that big winners presented improvements in early-grade IDEB scores, Portuguese language scores, and reductions in age-grade distortion, along with a slight increase in enrollment in early childhood education. In contrast, big losers experienced an increase in age-grade distortion. These findings suggest that the redistribution of resources through the new Fundeb may contribute to improving the quality of basic education. Essay 3 examines the effects of the policy on educational inequalities across municipalities, combining the Theil-T index with a simulated difference-in-differences model for the 2017–2023 period. The analysis covers disparities in access, infrastructure, and student performance, focusing on the same municipal groups. The results show reductions in inequalities related to access and infrastructure, especially in early childhood education and early grades, while challenges remain in the later years, particularly regarding student retention. Performance inequality in Portuguese language showed a slight increase among big winners. The three essays contribute to the analysis of the effects of funding policies and financial resources on Brazilian education, offering evidence to support interventions aimed at promoting greater equity and quality within the educational system.