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Why is so Little Spent on Educating the Poor?

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Author Info
Tony Addison ()
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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Paper provided by esocialsciences.com in its series Working Papers with number id:1080.

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Date of creation: 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. Bernheim, B Douglas & Whinston, Michael D, 1986. "Common Agency," Econometrica, Econometric Society, vol. 54(4), pages 923-42, July. [Downloadable!] (restricted)
  2. Easterly, William & Levine, Ross, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1203-50, November.
    Other versions:
  3. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Blackwell Publishing, vol. 63(2), pages 237-64, April. [Downloadable!] (restricted)
  4. Cutler, D.M. & Glaeser, E.L., 1995. "Are Ghettos Good or Bad?," Papers e-95-6, Stanford - Hoover Institution.
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  5. David M. Cutler & Douglas W. Elmendorf & Richard J. Zeckhauser, 1993. "Demographic Characteristics and the Public Bundle," NBER Working Papers 4283, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Castro-Leal, Florencia & Dayton, Julia & Demery, Lionel & Mehra, Kalpana, 1999. "Public Social Spending in Africa: Do the Poor Benefit?," World Bank Research Observer, Oxford University Press, vol. 14(1), pages 49-72, February. [Downloadable!]
  7. Filmer, Deon, 2000. "The structure of social disparities in education : gender and wealth," Policy Research Working Paper Series 2268, The World Bank. [Downloadable!]
  8. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
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  9. Erzo F.P. Luttmer, 1999. "Group Loyalty and the Taste for Redistribution," Working Papers 9902, Harris School of Public Policy Studies, University of Chicago. [Downloadable!]
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  10. Paul Collier, 2001. "Implications of ethnic diversity," Economic Policy, CEPR, CES, MSH, vol. 16(32), pages 127-166, 04. [Downloadable!] (restricted)
  11. Ablo, Emmanuel & Reinikka, Ritva, 1998. "Do budgets really matter? - evidence from public spending on education and health in Uganda," Policy Research Working Paper Series 1926, The World Bank. [Downloadable!]
  12. Dixit, Avinash & Grossman, Gene M & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 752-69, August.
  13. Durlauf, Steven N, 1996. " A Theory of Persistent Income Inequality," Journal of Economic Growth, Springer, vol. 1(1), pages 75-93, March.
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