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

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  • Orazem, Peter
  • King, Elizabeth M.

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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Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12838.

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Date of creation: 01 Jan 2008
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Handle: RePEc:isu:genres:12838

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Citations

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Cited by:
  1. Yoshito Takasaki, 2012. "Do natural disasters decrease the gender gap in schooling?," Tsukuba Economics Working Papers, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba 2012-001, Economics, Graduate School of Humanities and Social Sciences, University of Tsukuba.
  2. Kenneth Harttgen & Stephan Klasen & Mark Misselhorn, 2010. "Pro-Poor Progress in Education in Developing Countries?," Review of Economics and Institutions, Università di Perugia, Università di Perugia, vol. 1(1).
  3. Krishnan, Pramila & Krutikova, Sofya, 2013. "Non-cognitive skill formation in poor neighbourhoods of urban India," Labour Economics, Elsevier, Elsevier, vol. 24(C), pages 68-85.
  4. Emran, M. Shahe & Shilpi, Forhad, 2012. "Gender, geography and generations : intergenerational educational mobility in post-reform India," Policy Research Working Paper Series 6055, The World Bank.
  5. ANDRÉ Pierre & DEMONSANT Jean-Luc, 2012. "Koranic Schools in Senegal: A real barrier to formal education?," CEPS/INSTEAD Working Paper Series 2012-34, CEPS/INSTEAD.
  6. King, Elizabeth M. & Montenegro, Claudio E. & Orazem, Peter F., 2010. "Economic freedom, human rights, and the returns to human capital : an evaluation of the Schultz hypothesis," Policy Research Working Paper Series 5405, The World Bank.
  7. Bustelo, Monserrat & Arends-Kuenning, Mary P. & Lucchetti, Leonardo, 2012. "Persistent Impact of Natural Disasters on Child Nutrition and Schooling: Evidence from the 1999 Colombian Earthquake," IZA Discussion Papers 6354, Institute for the Study of Labor (IZA).
  8. Bruno Teodoro Oliva & André Portela Fernandes De Souza & Vladimir Pinheiro Ponczek, 2011. "Os Determinantes Do Fluxo Escolar Entreo Ensino Fundamental E O Ensino Médio No Brasil," Anais do XXXVIII Encontro Nacional de Economia [Proceedings of the 38th Brazilian Economics Meeting], ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of 165, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  9. Abhiroop Mukhopadhyay & Soham Sahoo, 2012. "Does Access to Secondary Education Affect Primary Schooling? Evidence from India," Working Papers id:5044, eSocialSciences.
  10. Orazem, Peter & Glewwe, Paul & Patrinos, Harry, 2007. "The Benefits and Costs of Alternative Strategies to Improve Educational Outcomes," Staff General Research Papers, Iowa State University, Department of Economics 12853, Iowa State University, Department of Economics.
  11. Jann Lay, 2010. "MDG Achievements, Determinants, and Resource Needs: What Has Been Learnt?," GIGA Working Paper Series 137, GIGA German Institute of Global and Area Studies.
  12. Behrman, Jere R., 2010. "Investment in Education Inputs and Incentives," Handbook of Development Economics, Elsevier, Elsevier.
  13. Subha Mani & John Hoddinott & John Strauss, 2009. "Determinants of Schooling Outcomes: Empirical Evidence from Rural Ethiopia," Fordham Economics Discussion Paper Series, Fordham University, Department of Economics dp2009-03, Fordham University, Department of Economics.
  14. Mani, Subha & Hoddinott, John & Strauss, John, 2012. "Long-term impact of investments in early schooling — Empirical evidence from rural Ethiopia," Journal of Development Economics, Elsevier, Elsevier, vol. 99(2), pages 292-299.
  15. 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, Fordham University, Department of Economics dp2009-09, Fordham University, Department of Economics.

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