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Education For All: A Welfare-Improving Course for Africa?

  • Elisabeth Caucutt

    (University of Western Ontario)

  • Krishna B. Kumar

    (Duke University)

In this paper, we argue that the case for universal compulsory education for sub-Saharan Africa might have been overstated. We capture the African situation through a heterogeneous-agent model, in which high costs of education relative to income and the skill premium cause the economy to stagnate in a low steady state with minimal educational attainment. We calibrate the model to available data from the sub-Saharan African countries to study education policies. We find that a tax and in-kind subsidy scheme that effectively redistributes resources from households with lower ability children to those with higher ability children outperforms enrollment-maximizing policies such as the abolition of child labor and compulsory education. (Copyright: Elsevier)

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File URL: http://dx.doi.org/10.1016/j.red.2006.11.003
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Article provided by Elsevier for the Society for Economic Dynamics in its journal Review of Economic Dynamics.

Volume (Year): 10 (2007)
Issue (Month): 2 (April)
Pages: 294-326

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Handle: RePEc:red:issued:06-75
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