IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/3171.html
   My bibliography  Save this paper

On the use of transparent formulae to allocate federal education transfers

Author

Listed:
  • Paqueo, Vicente
  • Lopez-Acevedo, Gladys
  • Parandekar, Suhas

Abstract

One of the key questions that arise in discussions of education decentralization, is how federal education resources should be allocated among the various states, and within states, among communities or schools. In general, there are two approaches: (1) bilateral negotiations between the federal government and states with little transparency as to the rules, and (2) formula-based distribution. The authors show that, based on econometric analysis on federal education transfers data in Mexico, the former approach can lead to allocation results that appear contrary to stated policy objectives like equity improvement and greater social inclusion in education. The authors then argue that contrary to common belief, the use of capitation, or per student allocation can improve not only efficiency but also equity. They present a theoretical model to analyze this hypothesis. The authors discuss several variations of the capitation formula, and present an analysis of the characteristics of the winners, and losers of their application, using Mexico as an illustration.

Suggested Citation

  • Paqueo, Vicente & Lopez-Acevedo, Gladys & Parandekar, Suhas, 2003. "On the use of transparent formulae to allocate federal education transfers," Policy Research Working Paper Series 3171, The World Bank.
  • Handle: RePEc:wbk:wbrwps:3171
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2003/12/08/000012009_20031208141408/Rendered/PDF/WPS3171.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Glewwe & Hanan Jacoby, 1994. "Student Achievement and Schooling Choice in Low-Income Countries: Evidence from Ghana," Journal of Human Resources, University of Wisconsin Press, vol. 29(3), pages 843-864.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Webb, Steven B. & Gonzalez, Christian Y., 2004. "Bargaining for a new fiscal pact in Mexico," Policy Research Working Paper Series 3284, The World Bank.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers WR-587, RAND Corporation.
    2. World Bank, 2011. "Vietnam," World Bank Publications - Reports 27450, The World Bank Group.
    3. Lay, Jann, 2010. "MDG Achievements, Determinants, and Resource Needs: What Has Been Learnt?," GIGA Working Papers 137, GIGA German Institute of Global and Area Studies.
    4. Assaad, Ragui & Hendy, Rana & Salehi-Isfahani, Djavad, 2019. "Inequality of opportunity in educational attainment in the Middle East and North Africa: Evidence from household surveys," International Journal of Educational Development, Elsevier, vol. 66(C), pages 24-43.
    5. Jean Drèze & Geeta Gandhi Kingdon, 2001. "School Participation in Rural India," Review of Development Economics, Wiley Blackwell, vol. 5(1), pages 1-24, February.
    6. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    7. Murat G. Kırdar & Meltem Dayıoğlu & İsmet Koç, 2016. "Does Longer Compulsory Education Equalize Schooling by Gender and Rural/Urban Residence?," The World Bank Economic Review, World Bank Group, vol. 30(3), pages 549-579.
    8. Orazem, Peter F. & King, Elizabeth M., 2008. "Schooling in Developing Countries: The Roles of Supply, Demand and Government Policy," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 55, pages 3475-3559, Elsevier.
    9. Garcia-Aracil, Adela & Winter, Carolyn, 2006. "Gender and ethnicity differentials in school attainment and labor market earnings in Ecuador," World Development, Elsevier, vol. 34(2), pages 289-307, February.
    10. Marcel Fafchamps & Agnes R. Quisumbing, 1999. "Human Capital, Productivity, and Labor Allocation in Rural Pakistan," Journal of Human Resources, University of Wisconsin Press, vol. 34(2), pages 369-406.
    11. Tsaneva, Magda, 2017. "Does school Matter? Learning outcomes of Indonesian children after dropping out of school," World Development Perspectives, Elsevier, vol. 6(C), pages 1-10.
    12. Atuhurra, Julius F., 2016. "Does community involvement affect teacher effort? Assessing learning impacts of Free Primary Education in Kenya," International Journal of Educational Development, Elsevier, vol. 49(C), pages 234-246.
    13. Marigee P. Bacolod & Priya Ranjan, 2008. "Why Children Work, Attend School, or Stay Idle: The Roles of Ability and Household Wealth," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 791-828, July.
    14. David K. Evans & Arkadipta Ghosh, 2008. "Prioritizing Educational Investments in Children in the Developing World," Working Papers 587, RAND Corporation.
    15. Appleton, S., 2000. "Education and Health at the Household Level in Sub-Saharan Africa," Papers 33, Chicago - Graduate School of Business.
    16. Drusilla K. Brown & Alan V. Deardorff & Robert M. Stern, 2009. "The Effects of Multinational Production on Wages and Working Conditions in Developing Countries," World Scientific Book Chapters, in: Globalization And International Trade Policies, chapter 17, pages 623-687, World Scientific Publishing Co. Pte. Ltd..
    17. Ahmed, Akhter U. & Arends-Kuenning, Mary, 2003. "Do crowded classrooms crowd out learning?," FCND briefs 149, International Food Policy Research Institute (IFPRI).
    18. Krafft, Caroline & Elbadawy, Asmaa & Sieverding, Maia, 2019. "Constrained school choice in Egypt," International Journal of Educational Development, Elsevier, vol. 71(C).
    19. Sarmistha Pal, 2004. "How Much of the Gender Difference in Child School Enrolment Can Be Explained? Evidence from Rural India," Bulletin of Economic Research, Wiley Blackwell, vol. 56(2), pages 133-158, April.
    20. Francesca Marchetta & David E. Sahn, 2016. "The Role of Education and Family Background in Marriage, Childbearing, and Labor Market Participation in Senegal," Economic Development and Cultural Change, University of Chicago Press, vol. 64(2), pages 369-403.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:3171. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.