Abstract.Day1.Boontawee

From ABC to GDP: How Investing in Younger Students Pays Off Big

Boontawee Teamvan, Bunnalin Thongpim, Nattawan Chuchalerm, and Virakorn Puranasamriddhi

This study employs National Transfer Accounts (NTAs) to highlight the greater economic and social benefits of prioritizing investments in basic education over the expansion of free higher education in Thailand. Analysis of NTAs disaggregated by income quintile shows that public spending on primary and secondary education benefit more to children from lower-income families, and contributes to reducing income inequality. in contrast, free higher education disproportionately benefits wealthier households, who are more likely to access tertiary institutions. Prioritizing basic education not only supports the have-nots more effectively but also enhances national productivity, reduces long-term dependency on public transfers, and drives sustainable economic growth. International evidence reinforces that quality education at earlier stages yields higher economic returns, making it a more equitable and impactful policy choice. This research underscores the urgent need for the Thai government to refocus its education spending to build a stronger, more inclusive foundation for the country's future prosperity.