This paper assesses the impact on economic growth of increased efficiency of public spending in primary
and lower-secondary education. Higher efficiency in public spending in schools can bolster growth through
two main channels. On the one hand, it can allow a transfer of labour from the public sector to the business
sector at unchanged educational output. On the other, it can enhance educational output and productivity of
the future labour force at unchanged public employment and expenditures. The paper argues that, in most
cases, efficiency gains...
