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The mechanics of progress in education : evidence from cross-country data

Author

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  • Mingat, Alain
  • Jee-Peng Tan

Abstract

The authors explore differences in education in rich and poor countries by first systematically documenting the relationship between per capita GNP and various indicators of educational development. They then exploit a simple accounting identity relating the availability of resources to their expenditure, to clarify the sources of rich countries'advantage in education. Data for a sample for 125 countries in 1993 confirm the expected favorable relationship between per capita GNP and each of the following dimensions of educational development: a) The sector context (as reflected by the demographic burden on the education system, the government's fiscal capacity, and so on). b) The production of education services, including such factors as public spending on education and the composition of spending. c)Education outcomes, in terms of coverage and student learning. d) Efficiency of sector operations. e) Equity in access and distribution of public spending on education. One appealing explanation for why richer countries achieve better results is that they have more resources for their education systems. But bigger budget allocations to education contribute relatively little to differences in resources. Lighter demographic burdens in richer countries is also a relatively modest factor. By far the most important factor is the decline of teacher salaries relative to per capita GNP, which accounts for at least half of any educational advantage at all stages of economic development. The extra resources for education associated with income growth allows a country to expand enrollments and improve classroom conditions by reducing the pupil-teacher ratio. Early in income growth, countries allocate more of the extra resources to expand coverage; later they shift toward reducing the pupil-teacher ratio. But, contend the authors, so long as coverage is not yet universal a more efficient strategy for educational development is to emphasize continued expansion of coverage rather than a rapid reduction in the pupil-teacher ratio. In the long run, lower levels of educational attainment among tomorrow's adults is likely to diminish learning achievement among tomorrow's children.

Suggested Citation

  • Mingat, Alain & Jee-Peng Tan, 1998. "The mechanics of progress in education : evidence from cross-country data," Policy Research Working Paper Series 2015, The World Bank.
  • Handle: RePEc:wbk:wbrwps:2015
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    Citations

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    Cited by:

    1. Branka Andjelkovic & Alexander Chubrik & Marek Dabrowski & Roman Mogilevsky & Irina Sinitsina & Przemyslaw Wozniak, 2010. "Challenges and Trajectories of Fiscal Policy and PFM Reform in CEE/CIS," CASE Network Reports 0092, CASE-Center for Social and Economic Research.
    2. Martin Gustafsson & Firoz Patel, 2009. "Managing the teacher pay system: What the local and international data are telling us," Working Papers 26/2009, Stellenbosch University, Department of Economics.
    3. Axel Dreher & Peter Nunnenkamp & Rainer Thiele, 2008. "Does Aid for Education Educate Children? Evidence from Panel Data," The World Bank Economic Review, World Bank Group, vol. 22(2), pages 291-314, April.
    4. Rajkumar, Andrew Sunil & Swaroop, Vinaya, 2008. "Public spending and outcomes: Does governance matter?," Journal of Development Economics, Elsevier, vol. 86(1), pages 96-111, April.
    5. Benjamin Kamga Fomba & Dieu Ne Dort Fokam Talla & Paul Ningaye, 2023. "Institutional Quality and Education Quality in Developing Countries: Effects and Transmission Channels," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 86-115, March.
    6. Bourguignon, Francois & Diaz-Bonilla, Carolina & Lofgren, Hans, 2008. "Aid, service delivery, and the millennium development goals in an economy-wide framework," Policy Research Working Paper Series 4683, The World Bank.
    7. Adejumo, Oluwabunmi O. & Asongu, Simplice A. & Adejumo, Akintoye V., 2021. "Education enrolment rate vs employment rate: Implications for sustainable human capital development in Nigeria," International Journal of Educational Development, Elsevier, vol. 83(C).
    8. Roland Craigwell & Danielle Bynoe & Shane Lowe, 2012. "The effectiveness of government expenditure on education and health care in the Caribbean," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 11(1), pages 4-18, April.
    9. Mr. Rodney Ramcharan, 2002. "Columbia or High School? Understanding the Roles of Education in Development," IMF Working Papers 2002/036, International Monetary Fund.
    10. Asplund, Rita (ed.), . "Education and Earnings. Further Evidence from Europe," ETLA B, The Research Institute of the Finnish Economy, number 183.
    11. Martin Gustafsson & Tsekere Maponya, 2020. "Are South Africa’s teachers among the best paid in the world? Using household assets as a proxy for monetary pay," Working Papers 08/2020, Stellenbosch University, Department of Economics.
    12. Gebregziabher, Fiseha & Niño-Zarazúa, Miguel, 2014. "Social spending and aggregate welfare in developing and transition economies," WIDER Working Paper Series 082, World Institute for Development Economic Research (UNU-WIDER).
    13. Mukherjee, Anit N., 2007. "Public expenditure on education: A review of selected issues and evidence," Working Papers hd1, National Institute of Public Finance and Policy.
    14. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
    15. Thia Jasmina, 2016. "Public Spending and Learning Outcomes of Basic Education at the District Level in Indonesia," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 62, pages 180-190, December.
    16. Fiseha Gebregziabher & Miguel Niño-Zarazúa, 2014. "Social Spending and Aggregate Welfare in Developing and Transition Economies," WIDER Working Paper Series wp-2014-082, World Institute for Development Economic Research (UNU-WIDER).
    17. Simon Feeny, 2013. "Service delivery and human development in Papua New Guinea: the performance of provincial governments," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 71-85.

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