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Schooling in Developing Countries: The Roles of Supply, Demand and Government Policy

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Author Info
Orazem, Peter F.
King, Elizabeth M.

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Abstract

In developing countries, rising incomes, increased demand for more skilled labor, and government investments of considerable resources on building and equipping schools and paying teachers have contributed to global convergence in enrollment rates and completed years of schooling. Nevertheless, in many countries substantial education gaps persist between rich and poor, between rural and urban households and between males and females. To address these gaps, some governments have introduced school vouchers or cash transfers programs that are targeted to disadvantaged children. Others have initiated programs to attract or retain students by expanding school access or by setting higher teacher eligibility requirements or increasing the number of textbooks per student. While enrollments have increased, there has not been a commensurate improvement in knowledge and skills of students. Establishing the impact of these policies and programs requires an understanding of the incentives and constraints faced by all parties involved, the school providers, the parents and the children. The chapter reviews the economic literature on the determinants of schooling outcomes and schooling gaps with a focus on static and dynamic household responses to specific policy initiatives, perceived economic returns and other incentives. It discusses measurement and estimation issues involved with empirically testing these models and reviews findings. Governments have increasingly adopted the practice of experimentation and evaluation before taking steps to expand new policies. Often pilot programs are initiated in settings that are atypically appropriate for the program, so that the results overstate the likely impact of expanding the program to other settings. Program expansion can also result in general equilibrium feedback effects that do not apply to isolated pilots. These behavioral models provide a useful context within which to frame the likely outcomes of such expansion.

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This chapter was published in: T. Paul Schultz & John A. Strauss (ed.) , Elsevier, chapter 55, pages 3475-3559, 2008.

This item is provided by Elsevier in its series Handbook of Development Economics with number 5-55.

Handle: RePEc:eee:devchp:5-55

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This chapter was published in the following book, which is listed on IDEAS:
T. Paul Schultz & John A. Strauss (ed.), 2008. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 4, number 5, December. [Downloadable!] (restricted)
Keywords: education; household demand for education; education policy;

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Find related papers by JEL classification:
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Orazem, Peter & Glewwe, Paul & Patrinos, Harry, 2007. "The Benefits and Costs of Alternative Strategies to Improve Educational Outcomes," Staff General Research Papers 12853, Iowa State University, Department of Economics. [Downloadable!]
  2. Christoffer Sonne-Schmidt & Finn Tarp & Lars Peter Østerdal, 2008. "Ordinal Comparison of Multidimensional Deprivation: theory and application," Discussion Papers 08-33, University of Copenhagen. Department of Economics. [Downloadable!]
  3. Subha Mani & John Hoddinott & John Strauss, 2009. "Long-Term Impact of Investments in Early Schooling – Empirical Evidence from Rural Ethiopia," Fordham Economics Discussion Paper Series dp2009-03, Fordham University, Department of Economics. [Downloadable!]
  4. Kenneth Hartgen & Stephan Klasen & Mark Misselhorn, 2009. "Pro-Poor Progress in Education in Developing Countries?," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 8, Courant Research Centre PEG. [Downloadable!]
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