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South Africa's economics of education: A stocktaking and an agenda for the way forward

  • Martin Gustafsson
  • Thabo Mabogoane

This paper reviews some of the existing economics of education literature from the perspective of South Africa's education policymaking needs. It also puts forward a suggested research agenda for future work. The review is arranged according to five areas of research: rates of return, production functions, teacher incentives, benefit incidence analysis and cross-country comparisons. Production functions, especially if translated to cost-effectiveness models, can point to important policy solutions. Teacher incentives is a policy area that is in need of a better theoretical and empirical basis. Rates of return are difficult for policymakers to interpret, but suggest a need for a qualification below the Grade 12 level. While benefit incidence analysis can demonstrate large improvements in the equity of public financing, cross-country comparisons reveal that not only is the distribution of schooling outcomes particularly unequal, on average it is well below what the country's level of development would predict.

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File URL: http://hdl.handle.net/10.1080/0376835X.2012.706033
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Article provided by Taylor & Francis Journals in its journal Development Southern Africa.

Volume (Year): 29 (2012)
Issue (Month): 3 (September)
Pages: 351-364

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Handle: RePEc:taf:deveza:v:29:y:2012:i:3:p:351-364
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