An analysis of Fundeb's contribution to the quality of public education in Brazilian municipalities

This study analyzed the effect of the Fund for the Maintenance and Development of Basic Education and for the Appreciation of Education Professionals (Fundeb) on the National System of Basic Education Assessment (Saeb) results of Brazilian municipalities by estimating a spatial panel model with information from 2007 and 2017, which include the 10 years of the fund's implementation. The results indicated that the 10% increase in the Fundeb amount per student received by the municipality raised the Saeb score by approximately one point. Furthermore, the increase in the fund's value in neighboring municipalities contributed to increasing the municipality's Saeb score by approximately three points. These results are evidence in favor of the hypothesis that Fundeb has encouraged the management and adoption of good practices in municipal education, which influence the decisions and behavior of the neighboring municipalities’ managers to also improve their practices and results.