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Why is so Little Spent on Educating the Poor?

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  • Tony Addison

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  • Aminur Rahman

    ()

Abstract

If the poor are to benefit from economic growth, then they need the skills that are in growing demand, and the capacity to raise their productivity as smallholder farmers and micro-entrepreneurs. Yet, the poor seldom receive a satisfactory education. Too little is spent on primary education—the category of education of most direct benefit to the poor—while on average public subsidies to secondary education are roughly three times as high as subsidies to primary education, and subsidies to tertiary education are thirty times as high. In consequence, the higher income deciles benefit disproportionately from public spending on education—the share of the richest income quintile (28%) is roughly double that of poorest income quintile (13%) across countries [DIscussion Paper No. 2001/29].

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:1080.

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Date of creation: Jul 2007
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Handle: RePEc:ess:wpaper:id:1080

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Keywords: poverty; income distribution; education; development;

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  1. Ted Miguel, 1999. "Ethnic Diversity, Mobility and School Funding: Theory and Evidence From Kenya," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers, Suntory and Toyota International Centres for Economics 14, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  2. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1203-50, November.
  3. Cutler, David M & Elmendorf, Douglas W & Zeckhauser, Richard J, 1993. "Demographic Characteristics and the Public Bundle," Public Finance = Finances publiques, , , vol. 48(Supplemen), pages 178-98.
  4. Steven N. Durlauf, 1992. "A Theory of Persistent Income Inequality," NBER Working Papers 4056, National Bureau of Economic Research, Inc.
  5. Cutler, David M & Glaeser, Edward L, 1997. "Are Ghettos Good or Bad?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(3), pages 827-72, August.
  6. Dixit, Avinash & Grossman, Gene M. & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Scholarly Articles 3450061, Harvard University Department of Economics.
  7. Alberto Alesina & Reza Baqir & William Easterly, 1997. "Public Goods and Ethnic Divisions," NBER Working Papers 6009, National Bureau of Economic Research, Inc.
  8. Bernheim, B Douglas & Whinston, Michael D, 1986. "Common Agency," Econometrica, Econometric Society, Econometric Society, vol. 54(4), pages 923-42, July.
  9. Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, World Bank Group, World Bank Group, vol. 14(1), pages 49-72, February.
  10. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 112(4), pages 1027-56, November.
  11. repec:fth:stanho:e-95-6 is not listed on IDEAS
  12. Addison, Tony & Ndikumana, Leonce, 2001. "Overcoming the Fiscal Crisis of the African State," Working Paper Series, World Institute for Development Economic Research (UNU-WIDER) UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  13. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  14. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR;CES;MSH, CEPR;CES;MSH, vol. 16(32), pages 127-166, 04.
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Cited by:
  1. Michael Clemens, 2004. "The Long Walk to School: International Education Goals in Historical Perspective," Working Papers, Center for Global Development 37, Center for Global Development.
  2. Gruber, Lloyd & Kosack, Stephen, 2014. "The Tertiary Tilt: Education and Inequality in the Developing World," World Development, Elsevier, Elsevier, vol. 54(C), pages 253-272.

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