DIGITAL LIBRARY
FINANCIAL IMPACTS OF CLASS-SIZE REDUCTION IN PORTUGUESE EDUCATIONAL SYSTEM
1 Institute of Education, University of Lisbon (PORTUGAL)
2 University Institut of Lisbon (ISCTE-IUL) (PORTUGAL)
About this paper:
Appears in: INTED2019 Proceedings
Publication year: 2019
Pages: 3425-3432
ISBN: 978-84-09-08619-1
ISSN: 2340-1079
doi: 10.21125/inted.2019.0889
Conference name: 13th International Technology, Education and Development Conference
Dates: 11-13 March, 2019
Location: Valencia, Spain
Abstract:
This research emerges in the follow up of a research project, funded by the Portuguese Ministry of Education, which had a great impact, and which promoted a new legal regulation regarding the size of classes.

The present research aims to promote a reflection toward the benefits derived from the class-size reduction, looking, in this sense, to demonstrate that the costs resulting from this are usually overvalued when they are determined on the basis of a worker's gross cost to the State, and not taking into account the corresponding net costs. For this academic exercise, it was considered the Portuguese case and the costs of a teacher for the public education system in Portugal. Keeping in mind a methodological approach designed to estimate not only gross costs, but, in the same way, the net costs of hiring a teacher at reference prices of 2015/2016, and crossing that cost with the projections of classes to be created in the Portuguese educational system, in the academic year of 2017/2018, starting from a scenario of reduction of the maximum number of students per class, it was estimated that the net costs of that measure will be in the order of 20 million euros, a significantly lower value to those usually assumed by policy makers and considered in the scientific debate on that measure of educational policy.

In addition to these net costs, it is necessary to consider other factors that justify the use of a policy of reduction of classes in Portugal. These are the positive pedagogical effects on students' learning - particularly in the most disadvantaged socioeconomic contexts -, the financial savings resulting from the amounts applied in programs to promote school retention, as well as a spillover effect in the medium to long-term resulting from a more educated population. If, to these factors, we still consider a scenario of a strong demographic decline in Portugal, it is demonstrated the opportunity and importance in reinforcing a policy of reducing the number of students per class in Portugal.

This work aims to contribute to a better reflection on this subject, in Portugal and in other countries, sensitizing different educational actors for a closer approximation of the relationship between cost and direct and indirect benefits that may result from a policy of class-size reduction.
Keywords:
Class-Size Reduction, Educational Policies, Educational Economy.