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Microeconomic and macroeconomic factors determining individual preferences for education
by Nitsotolis Vasileios
      1. Introduction
        This paper investigates the determinants of individual preferences regarding public education spending and reform, contributing to the discussion on how socio-economic and institutional contexts influence public opinion. It highlights the significance of understanding the drivers behind individual choices in shaping support for education policies.
      2. Literature review on individual preferences for education
        Previous research has demonstrated that support for public education investment is associated with socioeconomic inequality, education level, and gender. Busemeyer (2012), Ansell (2008, 2010), and Svallfors (1997) argue that individuals facing social disparities or pursuing education tend to favor redistribution and education reform, although perceptions may vary depending on benefit concentration and fiscal context (Van de Walle & Jilke, 2014; Levy, 2005).
      3. Methodological modelling
        The study employs logit models to evaluate predictors of support for education reform. This technique is appropriate for categorical dependent variables and provides standardized estimates, enabling comparisons across variables with different scales (Aldrich & Nelson, 1984; Long & Freese, 2014; Pampel, 2021).
      4. Data
        Micro-level data were sourced from the Flash Eurobarometer 526 survey (GESIS - Study ZA7986, April 2023), covering 20 European countries. Macroeconomic indicators were obtained from Eurostat and OECD databases. The variables encompass demographic, economic, educational characteristics, income distribution, tertiary education rates, unemployment, and public education expenditure.
      5. Results
        Findings indicate that both individual and country-level factors significantly affect preferences. Support is higher among women, urban dwellers, students, and white-collar workers, while men show lower support rates. Positive predictors include median income, Gini index, tertiary enrollment, and unemployment, whereas income by urban category and public education spending show negative associations. Individuals outside the labor force do not express higher support for education reform, confirming past conclusions regarding their prioritization of immediate welfare benefits.
      6. Conclusions
        This study provides robust evidence that individual preferences on education reform are shaped by a combination of microeconomic and macroeconomic conditions. Policymakers should consider these factors when designing inclusive education strategies, especially in contexts of rising inequality. Targeted redistribution through education, alongside efforts to engage underrepresented groups, is essential for enhancing equity. Further research is needed to refine understanding of how institutional, fiscal, and social variables jointly influence public attitudes toward education.
    • JEL CLASSIFICATION I28, I28, H52
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