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IV.B Education and Development
Carleton UniversityECON 3508
(Text, Chapter 8, pp. 359-386]
February 14, 2013
Arch Ritter
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The Central Roles of Education and Health
Health and education are important objectives of development, as reflected in Amartya Sen’s capability approach, and in the core values of economic development
Health and education are also important components of growth and development
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Education and Health as Joint Investments for Development These are investments in the same individual;
Mutually supportive Greater health capital may improve the returns to
investments in education Health is a factor in school attendance Healthier students learn more effectively A longer life raises the rate of return to education Healthier people have lower depreciation of
education capital Greater education capital may improve the returns to
investments in health Public health programs need knowledge learned in
school Basic hygiene and sanitation may be taught in
school Education is needed in training of health personnel
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Improving Health and Education: Why Increasing Incomes Is Not
Sufficient Increases in income often do not lead to
substantial increases in investment in children’s education and health
But better educated mothers tend to have healthier children at any income level
Significant market failures in education and health require policy action Signifying major Government roles
everywhere
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What is Education?What is Education?
Where does one get it?Where does one get it?
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What is Education?What is Education? ““All forms of learning and improving human knowledge All forms of learning and improving human knowledge
and capabilities”and capabilities” Education =/= “Schooling”Education =/= “Schooling” Types of education:Types of education:
Informal:Informal: At home, from our parents and family, friends……. At home, from our parents and family, friends……. On our own, learning by doingOn our own, learning by doing At playAt play On the job; at work On the job; at work In conversationIn conversation In our communities In our communities
FormalFormal At “day-care”, school, college, university, classes…At “day-care”, school, college, university, classes… Employee training Employee training Formal apprenticeships Formal apprenticeships
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The Functions of The Functions of EducationEducation
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The Functions of The Functions of EducationEducation General socialization; Ethical Community & citizenship
responsibility Fundamental personal empowerment Improvement in personal and family
quality of life “Joy of learning”…an “end” in itself Understanding the world and
ourselves “Human capital”: of particular
relevance here
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Human CapitalHuman Capital
The economist’s term for the knowledge and skills that workers acquire through education, training, and experience.
Produced through investment in people
Examples:
formal education, health,
informal education, sanitation,
family environment water availability, nutrition,
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Education and Education and DevelopmentDevelopment
In general: Education promotes development and Development promotes education
How does education promote development??
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Education and Education and DevelopmentDevelopment
How does education promote development? Basic literacy and numeracy are
indispensible for coping and survival in the modern world
Generates skills of all sorts needed in the economy
Improved parental, esp. mothers’ education builds “human capital” of children; e.g. via nutrition, health, child-care spill-overs or via nutrition, health, child-care spill-overs or “externalities”“externalities”
May improves quality and scope of entrepreneurship on farms and in other economic activities
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But education on its own will not “produce” development;
Public policy mess-ups, institutional stupidities and political dysfunction all can overwhelm good education and produce stagnation and contraction
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Development and Development and EducationEducation
Does development promote Does development promote education?education?
How?How?
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Education and Development
How does development promote education?
Development (sustainable growth plus equity) generates the resources that can improve and support education• Growth leads to increased tax
revenues for public education expenditures;
• Higher family incomes permit increased family financing of education
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8.5 Educational Systems and Development
Educational supply and demand: the relationship between employment opportunities and educational demands
“Education Certification”: continuous up-grading of job entry requirements
for jobs previously filled with less-educated workers.
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Analyzing Education: Costs and Benefits, Private and Social
Private Costs and Benefits:Private Costs and Benefits:
Social Costs and Benefits” Social Costs and Benefits”
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Analyzing Education: Costs and Benefits, Private and Social
Private Benefits:Private Benefits:• Personal empowerment: Personal empowerment:
knowledge, skills, “learning to learn”knowledge, skills, “learning to learn”• Lifetime earningsLifetime earnings• Greater potential for participationGreater potential for participation• Consumption benefits?Consumption benefits?
Private Costs Private Costs • Hard work (also maybe a private benefit).Hard work (also maybe a private benefit).• Earnings foregone (opportunity cost) Earnings foregone (opportunity cost) • Direct costs (fees, supplies, board & lodging)Direct costs (fees, supplies, board & lodging)
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Analyzing Education: Costs and Benefits, Private and Social
Social BenefitsSocial Benefits Improved productivity benefits allImproved productivity benefits all Improved nutrition, health, child-care spill-overs or Improved nutrition, health, child-care spill-overs or
“externalities”, especially from women’s education“externalities”, especially from women’s education Improved potential for tech change and productive Improved potential for tech change and productive
entrepreneurship entrepreneurship More effective political participation?More effective political participation?
• Social CostsSocial Costs Resources dedicated to educationResources dedicated to education Opportunity costs to societyOpportunity costs to society
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Investing in Education and Health: The Human Capital
Approach Initial investments in health or
education lead to a stream of higher future income
The present discounted value of this stream of future income is compared to the costs of the investment
Private returns to education are high, and may be higher than social returns, especially at higher educational levels
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Figure 8.1 Age-Earnings Profiles by Level of Education: Venezuela
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Figure 8.2 Financial Trade-Offs in the Decision to Continue in School
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Psacharopoulos and Patrinos, 2005
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Figure 8.6 Private versus Social Benefits and Costs of Education: An Illustration
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8.5 Educational Systems and Development
Distribution of Education Lorenz curves for the distribution
of education
Education, Inequality, and Poverty Note that formal education systems can Note that formal education systems can
worsen income distributionworsen income distribution
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Lorenz Curves and Gini Coefficients for Education in India and South Korea, 1990
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Gini Coefficients for Education in 85 Countries
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Figure 8.4 Youth Figure 8.4 Youth Literacy Rate, 2008Rate, 2008
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Trends in African Trends in African Education:Education:
Gross Enrollment RatiosGross Enrollment Ratios1970 2000 2007
Primary 51.0 81.7 94.0Secondary
6.3 25.7 30.0
Tertiary 0.8 3.6 5.5Source: World Bank, World Development Indicators, 2009
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MDG Goals and Achievem
ent: Education
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Participation in Education for Some African Countries, 2007
Country Primary Secondary Tertiary Adult LiteracyM F
S. Africa 103 96 15 89 87
Ghana 96 49 6 72 58
Kenya 106 50 Na Na
Zimbabwe 101 40 Na 95 88
Botswana 107 76 5 83 83
Nigeria 97 32 10 80 64
Malawi 126 28 0 79 65
Ethiopia 91 30 3 Na
Liberia 90.6 31.6 17.4 58.1
All Africa 94 32 5 71 54Source: UNDP. Human Development Report, 2007/2008
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The Gender Gap: Discrimination in Education
Young females receive less education than young males in nearly every low and lower-middle income developing country
Closing the educational gender gap is important because: The social rate of return on women’s
education is higher than that of men in developing countries
Education for women increases productivity, lowers fertility
Educated mothers have a multiplier impact on future generations
Education can break the vicious cycle of poverty and inadequate schooling for women
Good news: MDG goals on parity being approached, progress in every developing region
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School Attainment by Gender:
Ratio of Female to Male, Per Cent
Region 1960
2000
South AsiaMiddle East and North Africa
Sub Saharan AfricaLatin America & Carib.East Asia
25%51%
59%83%50%
52%60%
71%96%84%
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Gender disparity is measured by the ratio of girls to boys enrolled in primary and secondary schools. Most regions are on track to achieve this target by 2015.
MDG Goals and
Achievement: Gender Disparities
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Educational Issues1.1. Achieving 100% primary school enrollmentsAchieving 100% primary school enrollments
2.2. Expanding secondary enrolmentsExpanding secondary enrolments
3.3. Expanding tertiary educationExpanding tertiary education
4.4. Equal access to education for girls and womenEqual access to education for girls and women
5.5. Child labour and educationChild labour and education
6.6. Relevance of curricula; especially in rural areas; Relevance of curricula; especially in rural areas; balancing supply of graduates with demand for balancing supply of graduates with demand for labourlabour
7.7. Financial and equity issuesFinancial and equity issues
8.8. ““Balance” among primary, secondary and tertiary Balance” among primary, secondary and tertiary educationeducation
9.9. Improving QualityImproving Quality10. Education, Internal Migration, and the Brain Drain
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Educational Issues
1. Achieving 100% primary school enrollments; almost complete
2. Expanding secondary educationMajor achievements so far in these areas:
But note
Africa:
gross enrollment ratios
Unevenness of advances among countries
1970 2000 2007
Primary 51.0 81.7 94.0
Secondary 6.3 25.7 30.0
Tertiary 0.8 3.6 5.5
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Participation in Education for Some African Countries, 2007
Country Primary
Secondary
Tertiary
Adult LiteracyM F
South Africa
103 96 15 89 87
Ghana 96 49 6 72 58
Kenya 106 50 Na Na
Zimbabwe
101 40 Na 95 88
Botswana
107 76 5 83 83
Nigeria 97 32 10 80 64
Malawi 126 28 0 79 65
Ethiopia 91 30 3 Na
D. R. Congo
85 33 4 Na
All Africa 94 32 5 71 54
Source: UNDP. Human Development Report, 2007/2008
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Educational Issues., continued3. 3. Equal access to education for girls and women,
especially in East Asian and some African countries
Why the imbalances? Cultural traditions in some countries; “At home” tradition for women; Early withdrawal for work at
home Income potentials for males vis-a-vis females outside the
home? Lack of resources Policy approach of governments Early pregnancies; early marriage
Most countries are catching up regarding women’s education,
quickly enough? A Millennial Development Goal
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Educational Issues, continued
4. Expanding Tertiary 4. Expanding Tertiary EducationEducation
High costHigh cost Quality issueQuality issue Equity issueEquity issue Brain drain issueBrain drain issue Curriculum relevance?Curriculum relevance?
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5. Child Labor
Child labor is a widespread phenomenon
Children need to learn to work; but when does this become exploitative and ant-developmental?
Government intervention may be necessary
Sometimes this shift can be self-enforcing, so active intervention is only needed at first
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Other approaches to child labor policy
Get more children into school e.g. new village schools; and enrollment incentives for parents
Consider child labor an expression of poverty, so emphasize ending poverty generally (a traditional World Bank approach, now modified)
If child labor is inevitable in the short run, regulate it to prevent abuse and provide support services for working children (UNICEF approach)
Ban child labor; or if impossible, ban child labor in its most abusive forms (ILO strategy;)
Activist approach: trade sanctions. Concerns: could backfire when children shift to informal sector; and if modern sector growth slows
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Educational Issues, continued
6. Relevance of curricula; especially in rural areas
Are “school-leavers” also “village-leavers”? (Rural brain drain?)
“Education for Development”
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7. Financial and equity issues7. Financial and equity issues
How should costs be shared between How should costs be shared between society and individual for higher society and individual for higher education? education?
[Hint: Observe social and private costs [Hint: Observe social and private costs and benefits]and benefits]
Educational Issues, continued
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Public Expenditure per Student per Year as a Percent of GDP pc
Country Primary
Secondary Tertiary
Botswana 16.1% 41.2% 440.6%
Burundi 20.0 77.5 363.1
Ghana 18.4 29.1 213.4
Mauritius 10.3 17.4 40.4
Niger 28.7 46.1 371.4
Rwanda 10.2 365.1 372.8
South Africa 15.6 16.7 44.3
Canada na na na
USA 22.2 24.6 26.
Source:: World Bank, World Development Report, 2009, Table 2.11
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Re. 7 and 8: The Issue of Balance and Fairness among Levels of Education
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8. “Balance” among primary, secondary 8. “Balance” among primary, secondary and tertiary educationand tertiary education
What should be the relevant emphases What should be the relevant emphases placed on these?placed on these?
Educational Issues, continued
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Educational Issues, cont’d:
9. Improving Quality while the systems expand rapidly
A Major task. How can this be done??
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9. Improving Quality while the systems expand rapidly. How can this be done??
Increase resource allocations (from Taxation via economic growth)
Easily said, hard to do; Relevamce of economic growth to undergird tax
increases and education Better teacher training;
better salaries to incentivate good full-time work Improve ability of children to learn
(nutrition at school sometimes) Concentrate attention on primary schools ? Reconsider financing for higher education ?
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10. 10. Education, Migration and various “Brain Drains”