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Investment in Education Inputs and Incentives

In: Handbook of Development Economics

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  • Behrman, Jere R.

Abstract

From the point of view of economic development, education is the acquisition of knowledge and skills through experiences from conception onwards over the life cycle that increase productivity broadly defined. Education can occur through, but is not limited to, formal educational activities such as preschool programs, schools, and formal training programs. The proximate determinants of education are experiences or inputs into knowledge and skills production functions. Within a dynamic forward-looking model of human capital investments, these experiences are determined sequentially by a series of family or individual decisions given past, current and expected future resources, markets, policies, and other institutions. The context in which these microinvestment demands are made, in turn, reflects decisions of suppliers of services that are explicitly related to education as well as of options that may be importantly related to education through other experiences, such as in labor markets. To understand the nature of inputs and incentives related to education in developing countries, attention must be paid to both the demand and the supply sides for investments in education, both of which are conditioned significantly by policy choices. Therefore, there are numerous important policy questions related to educational inputs and incentives. What are critical inputs into different educational processes? How important are various incentives for improving these inputs? How effective are various demand-side policies versus supply-side policies? How important are policies that have direct impact on input decisions versus policies that alter longer-run incentives to invest in current education through altering expected longer-run returns from such investments? What are the benefits relative to the resource costs of alternative policies for improving educational inputs? This chapter assesses the current state of empirical knowledge, and gaps in that knowledge, on educational incentives and inputs in developing countries as related to such questions.

Suggested Citation

  • Behrman, Jere R., 2010. "Investment in Education Inputs and Incentives," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4883-4975, Elsevier.
  • Handle: RePEc:eee:devchp:v:5:y:2010:i:c:p:4883-4975
    DOI: 10.1016/B978-0-444-52944-2.00011-2
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    2. Stephen Machin & Sandra McNally & Martina Viarengo, 2018. "Changing How Literacy Is Taught: Evidence on Synthetic Phonics," American Economic Journal: Economic Policy, American Economic Association, vol. 10(2), pages 217-241, May.
    3. Xiao, Yun & Li, Li & Zhao, Liqiu, 2017. "Education on the cheap: The long-run effects of a free compulsory education reform in rural china," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 544-562.
    4. Sandra Nieto & Raul Ramos & Juan Carlos Duque, 2012. "Rural-urban differences in educational outcomes: Evidence for Colombia using PISA microdata," ERSA conference papers ersa12p388, European Regional Science Association.
    5. Metzler, Johannes & Woessmann, Ludger, 2012. "The impact of teacher subject knowledge on student achievement: Evidence from within-teacher within-student variation," Journal of Development Economics, Elsevier, vol. 99(2), pages 486-496.
    6. Song, Yang, 2018. "Intended and unintended effects of student performance measurement reform in China," China Economic Review, Elsevier, vol. 50(C), pages 133-152.
    7. Raul Ramos & Juan Carlos Duque & Sandra Nieto, 2012. "“Decomposing the Rural-Urban Differential in Student Achievement in Colombia Using PISA Microdata”," AQR Working Papers 201210, University of Barcelona, Regional Quantitative Analysis Group, revised Mar 2013.
    8. Xiaoying Liu & Jere R Behrman & Aryeh D Stein & Linda S Adair & Santosh K Bhargava & Judith B Borja & Mariangela Freitas da Silveira & Bernardo L Horta & Reynaldo Martorell & Shane A Norris & Linda M , 2017. "Prenatal care and child growth and schooling in four low- and medium-income countries," PLOS ONE, Public Library of Science, vol. 12(2), pages 1-21, February.
    9. Moshoeshoe,Ramaele Elias, 2020. "Long-Term Effects of Free Primary Education on Educational Achievement : Evidence from Lesotho," Policy Research Working Paper Series 9404, The World Bank.
    10. Zhou, Jinchun & Deolalikar, Anil B., 2022. "Generational persistence in schooling in China over a half century: Implications for schooling inequality," International Journal of Educational Development, Elsevier, vol. 89(C).
    11. Kilburn, Kelly & Handa, Sudhanshu & Angeles, Gustavo & Mvula, Peter & Tsoka, Maxton, 2017. "Short-term impacts of an unconditional cash transfer program on child schooling: Experimental evidence from Malawi," Economics of Education Review, Elsevier, vol. 59(C), pages 63-80.
    12. repec:idb:brikps:69298 is not listed on IDEAS
    13. Ramos, Raul & Duque, Juan Carlos & Nieto, Sandra, 2016. "Decomposing the Rural-Urban Differential in Student Achievement in Colombia using PISA Microdata/Una descomposición del diferencial rural-urbano en los rendimientos educativos en Colombia a partir de ," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 34, pages 379-412, Mayo.
    14. Jorge M. Agüero & Muhammad F. Majid, 2016. "War and the Stock of Human Capital," Working papers 2016-24, University of Connecticut, Department of Economics.

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    More about this item

    Keywords

    education; knowledge; skills; human capital; test scores; incentives for education; economic development; schooling; preschool programs; early childhood development; training programs; learning by doing; program evaluation; experimental trials; demand-side educational policies; supply-side educational policies; school vouchers; conditional cash transfers; teacher incentives; student incentives; educational product markets; teacher markets; labor markets;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • I00 - Health, Education, and Welfare - - General - - - General
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I29 - Health, Education, and Welfare - - Education - - - Other

    Statistics

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