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What Do Teachers Do? Teacher Quality Vis-a-vis Teacher Quantity in a Model of Public Education and Growth

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Author Info

  • MAUSUMI DAS

    (Department of Economics, Delhi School of Economics, Delhi, India)

  • SUBRATA GUHA

    (Centre for Economic Studies & Planning, Jawaharlal Nehru University New Delhi 110067)

Abstract

This paper analyses the contribution of teachers in a public education system and its implication for growth. We focus exclusively on two teacher-specific inputs (teacher quality and teacher quantity), and two student-specific inputs (ability and effort). We argue that all these factors enter separately in the education technology and therefore have differential impact of the process of human capital formation. In a public educa- tion system where teachers remunerations are paid by the government and financed by taxation, for any given amount of government revenue, there exists a trade-o¤ between teacher quality and teacher quantity. At the same time, the imposed tax rate has an impact on the export choice of an agent. Thus human capital formation and growth in the model depends on a complex interaction between teacher quality, teacher quantity, student ability and student effort. In this context we discuss the optimal education policy as well the optimal taxation policy of the government.

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Bibliographic Info

Paper provided by Centre for Development Economics, Delhi School of Economics in its series Working papers with number 216.

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Length: 23 pages
Date of creation: Sep 2012
Date of revision:
Handle: RePEc:cde:cdewps:216

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Related research

Keywords: Public Education; Quality of Education; Growth;

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  1. Jean-Marie Viaene & Itzhak Zilcha, 2009. "Human Capital and Inequality Dynamics: The Role of Education Technology," Economica, London School of Economics and Political Science, vol. 76(304), pages 760-778, October.
  2. Zhang, Jie, 1996. " Optimal Public Investments in Education and Endogenous Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 98(3), pages 387-404.
  3. Andrew Leigh & Chris Ryan, 2008. "How and Why Has Teacher Quality Changed in Australia?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 41(2), pages 141-159, 06.
  4. Jesse Rothstein, 2008. "Teacher Quality in Educational Production: Tracking, Decay, and Student Achievement," NBER Working Papers 14442, National Bureau of Economic Research, Inc.
  5. Robert Tamura, 2001. "Teachers, Growth, and Convergence," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1021-1059, October.
  6. Hanushek, Eric A. & Woessmann, Ludger, 2007. "The role of education quality for economic growth," Policy Research Working Paper Series 4122, The World Bank.
  7. Blankenau, William F. & Simpson, Nicole B., 2004. "Public education expenditures and growth," Journal of Development Economics, Elsevier, vol. 73(2), pages 583-605, April.
  8. Caroline M. Hoxby & Andrew Leigh, 2004. "Pulled Away or Pushed Out? Explaining the Decline of Teacher Aptitude in the United States," American Economic Review, American Economic Association, vol. 94(2), pages 236-240, May.
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