||The trend of Taiwan′s population structure changing is mainly due to medical technology development and late marriage, fertility reduction, life-span is getting longer and the number of children is gradually reduced. Aging population and low birth rate accelerate Taiwan into the aging society. Therefore, the expenditure on the aging population is the main social and economic issue. I would like to explore whether the proportion of the aging population gradually increases, and then government’s financial expenditure on education will reduce due to the expenditure for pension and health care to the aging population. Is there exclusion to the expenditure between aging and children? |
In this paper, using panel data model, data includes 20 cities and counties in Taiwan, and time period is from 1998 to 2015. The proportion of the annual expenditure on education is the dependent variable. The total number of young people, the total population of the elderly, per household median disposable income, the total number household of cities and counties are independent variables. The results of empirical analysis show that this study is suited to fixed effect model, the relation between total population of young children and education expenditure is positive, representing the total number of young children increasing, the county’s government education spending will significantly increase. The total number of elderly population and education expenditure is positive, which is different from the expected result. The reason may be that the government has always regarded education as the important development in the future, so the education expenditure and the elderly population are increasing. However, while situation of population aging is getting heavy, there might a conflict between aging trend and financial expenditure on education.
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