Benchmarking the effective literacy rate
Several authors have identified an externality accruing to proximate illiterates, that is, illiterate people with access to a literate person. The standard literacy rate ignores this externality; measures of effective literacy are sensitive to it. Nearly all measures of effective literacy appearing in the literature are greater than or equal to R. In fact, the best known of these, the Basu-Foster measure , is strictly greater in virtually every case (see Basu and Foster [Basu, Kaushik, Foster, James, 1998. On measuring literacy. Economic Journal 108 (451), 1733-1749]). Although the inequality is an unintended consequence of their construction, it amounts to setting a benchmark for the effective literacy rate. This note examines Basu and Foster's framework and offers an alternative benchmark.
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- Basu, Kaushik & Foster, James E., 1998.
"On measuring literacy,"
Policy Research Working Paper Series
1997, The World Bank.
- Sen, Amartya, 1997. "On Economic Inequality," OUP Catalogue, Oxford University Press, number 9780198292975, March.
- Gibson, John, 2001. "Literacy and Intrahousehold Externalities," World Development, Elsevier, vol. 29(1), pages 155-166, January.
- Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 2001. "Is literacy shared within households? Theory and evidence for Bangladesh," Labour Economics, Elsevier, vol. 8(6), pages 649-665, December.
- Dutta, Indranil, 2004. "Generalized measures of literacy," Mathematical Social Sciences, Elsevier, vol. 48(1), pages 69-80, July.
- Subramanian, S., 2004. "Measuring literacy: some extensions of the Basu-Foster framework," Journal of Development Economics, Elsevier, vol. 73(1), pages 453-463, February.
- Mitra, Tapan, 2002. "On Literacy Rankings," Working Papers 02-16, Cornell University, Center for Analytic Economics.
- Maddox, Bryan, 2007. "Worlds Apart? Ethnographic Reflections on "Effective Literacy" and Intrahousehold Externalities," World Development, Elsevier, vol. 35(3), pages 532-541, March.
- Kaushik Basu & James E.Foster & S. Subramanian, 2000. "Isolated and Proximate Illiteracy And Why these Concepts Matter in Measuring Literacy and Designing Education Programmes," Vanderbilt University Department of Economics Working Papers 0002, Vanderbilt University Department of Economics.
- Basu, Kaushik & Narayan, Ambar & Ravallion, Martin, 1999. "Is knowledge shared within households?," Policy Research Working Paper Series 2261, The World Bank.
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