Financial impacts of a policy of class-size reduction: the Portuguese case

Abstract

This research emerges in the follow up of a research project, funded by the Portuguese Ministry of Education, and which supported a new legal regulation regarding the size of classes. The present article 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 taken into account the Portuguese case and the costs of a teacher for the public education system in Portugal at reference prices of 2017/2018. 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. This work intends to contribute to a better reflection on this subject, sensitizing different educational actors for a closer approximation to the relationship between cost and direct and indirect benefits that may result from a policy of class-size reduction.