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Education For All: A Welfare-Improving Course for Africa?

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  • Elisabeth Caucutt

    (University of Western Ontario)

  • Krishna B. Kumar

    (Duke University)

Abstract

In this paper, we argue that the case for universal compulsory education for sub-Saharan Africa might have been overstated. We capture the African situation through a heterogeneous-agent model, in which high costs of education relative to income and the skill premium cause the economy to stagnate in a low steady state with minimal educational attainment. We calibrate the model to available data from the sub-Saharan African countries to study education policies. We find that a tax and in-kind subsidy scheme that effectively redistributes resources from households with lower ability children to those with higher ability children outperforms enrollment-maximizing policies such as the abolition of child labor and compulsory education. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2006.11.003
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Bibliographic Info

Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 10 (2007)
Issue (Month): 2 (April)
Pages: 294-326

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Handle: RePEc:red:issued:06-75

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Keywords: Heterogeneous-agent macroeconomic models; Education subsidies; Economic stagnation;

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References

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Cited by:
  1. Sylvain Dessy & Tiana Rambeloma, 2009. "Immigration Policy, Remittances, and Growth in the Migrant-Sending Country," Cahiers de recherche, CIRPEE 0915, CIRPEE.
  2. Alain Nurbel & Ibrahim Ahamada, 2008. "Investissements directs étrangers entrants et développement : l'enjeu de la capacité d'absorption," Mondes en développement, De Boeck Université, De Boeck Université, vol. 0(3), pages 79-96.

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