Efficiency of public spending related to human capital formation

Abstract

This paper analyzes efficiency of public spending related to human capital formation in basic primary school in the East Paraná region. As data served the IDEB index and an analyze of its variables that might have impacted those results. The theory of human capital concludes that education can interfere essentially in the development of a person, especially due to excellence in instruction for the initial years. Based on this concept and that the IDEB índex is appropriate to measure quality of instruction and, consequently of human capital, the research supposes that public spending influences the IDEB index. Thus, the research determined the spending on basic primary school, carried out by the municipalities of the East Paraná region between 2006 and 2011 and compared them with the results of the IDEB index. The results reveal that the development of the IDEB index was proportionately lower than the increase of public spending, indicating possible failure in formation of human capital. It also exhibits that between the variables that influences the dimension evaluation, the variable Meta 3 is the one that should demand more attention related to interventions and public policies in education.