The distributional impact of public education expenditure in the United Kingdom

Publication type

Research Paper

Series Number



project deliverable


Publication date

February 1, 2007


The analysis performed in this paper concerns non-cash benefits and in particular it focuses on how accounting for public expenditure for education alters the current distribution of individual well being in the United Kingdom. Public education delivers a service that beneficiaries would otherwise need to spend cash resources on and in this respect is regarded as a non-cash government transfer.
The study of the distributional impact of public education non-cash transfers requires micro-level survey data representative of the UK population, besides national accounts aggregates for current public education expenditure. We use two alternative datasets, Family Expenditure Survey 2000/01 and Family Resources Survey 20003/04 , containing information about household cash income together with information about the number of people receiving public education at different levels. We find both an inequality and poverty reduction effect of public education expenditure.


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