nep-edu New Economics Papers
on Education
Issue of 2007‒06‒30
eight papers chosen by
Joao Carlos Correia Leitao
University of the Beira Interior

  1. Specialization in Higher Education and Economic Growth By von Greiff, Camilo
  2. Making their mark. Disentangling the Effects of Neighbourhood and School Environments on Educational Achievement By Brännström, Lars
  3. Enrollment in higher education, ability and growth By von Greiff, Camilo
  4. Linkages Between Performance and Institutions in the Primary and Secondary Education Sector By Douglas Sutherland; Robert Price
  5. Public sector research and industrial innovation in Norway: a historical perspective By Magnus Gulbrandsen; Lars Nerdrum
  6. Effects of Redistribution Policies - Who Gains and Who Loses? By von Greiff, Camilo
  7. From creativity to innovation By Yusuf, Shahid
  8. Linking Technical Education to Business Growth: A Case Study on Building Technical Skills in India By Basant Rakesh; Chandra Pankaj

  1. By: von Greiff, Camilo (Dept. of Economics, Stockholm University)
    Abstract: This paper presents a new market failure in the decision on educational type in higher education. Individuals choose types of education with different degrees of specialization. Labor market transformation makes some individuals opt for a non-specialized education type that broadens the future career possibilities in an uncertain labor market. However, the growth rate in the economy is assumed to positively depend on the amount of specialized workers that get a job within their specialized field. Imposing a tax and transfer scheme in favor of specialized education types may correct for the market failure and Pareto improve the economy if the transfer attracts a sufficiently large amount of new students to a specialized education type and if their effect on the growth rate is substantial.
    Keywords: Educational Choice; Growth
    JEL: H23 I22
    Date: 2007–06–27
  2. By: Brännström, Lars (Institute for Futures Studies)
    Abstract: One subject that has received ample attention in recent years is the potential negative effects of spatial concentrations of disadvantage on participation in society, particularly in terms of labour market participation and educational careers. This study contributes to the literature on the effects of neighbourhood and school on individual educational outcomes by examining whether and to what extent adolescent educational achievement is determined by neighbourhood and school population characteristics. By using an unusually rich administrative data set of leaving certificates for around 26,000 upper secondary school students who were registered as residing in any of the three metropolitan areas of Sweden in the school year 2004, cross-classified multilevel analyses show that characteristics attributable to upper secondary schools matter much more for the variability in achievement than do neighbourhoods. There are also indications of contextual effects at each level (particularly among boys with an immigrant background) that operate above and beyond the impact of observed individual-level background attributes. Since the estimated effects of concentrations of (dis)advantage and immigrant density at neighbourhood and school level point in different directions, this study demonstrates the benefits of analysing the effects of neighbourhood and school on individual educational outcomes at the same time.
    Keywords: education; neighbourhood
    JEL: I20 J31
    Date: 2007–06–25
  3. By: von Greiff, Camilo (Dept. of Economics, Stockholm University)
    Abstract: This paper examines the importance of the ability of high-educated individuals on the growth rate. I consider two sources of heterogeneity among individuals: ability and consumption value of education. The latter is assumed to depend on family background and will thus generate different ability thresholds to enroll in higher education for different family background types. If the effect of high-educated individuals on the growth rate depends on their ability, this will affect the willingness of low-educated individuals to contribute to the funding of higher education. Whether state funded subsidies to higher education benefit some of the low-educated individuals or even are Pareto improving is shown to depend on the switchers’ ability and hence their influence on the growth rate.
    Keywords: Higher education; Growth
    JEL: I22
    Date: 2007–06–26
  4. By: Douglas Sutherland; Robert Price
    Abstract: The efficiency of schools diverges dramatically across countries in the OECD and can also vary markedly within countries. These differences in levels of efficiency can be traced to policy and institutional settings. As such, moving to best practice could boost educational attainment and reduce pressure on budgetary resources. This paper assesses empirically the relationship between institutional and policy settings and the efficiency of public spending on primary and secondary education across OECD countries. The analysis builds on two previous papers, which respectively developed OECD-area indicators of educational efficiency based on PISA score data and institutional indicators based on questionnaire responses. The results identify a number of institutional and policy settings that appear conducive to raising efficiency, as well as policies that appear to be detrimental to achieving higher levels of efficiency. <P>Liens entre les indicateurs d'efficacité et les indicateurs institutionnels dans le secteur de l'enseignement primaire et secondaire <BR>L'efficacité des établissements scolaires varie énormément dans les pays de la zone OCDE et peut aussi varier sensiblement à l'intérieur d'un même pays. Ces différences de niveaux d'efficience peuvent être attribuées aux politiques publiques et aux structures institutionnelles. De ce fait, s'orienter vers les meilleures pratiques pourrait stimuler les performances des systèmes scolaires. Cet article évalue de manière empirique la relation entre les structures institutionnelles, les politiques gouvernementales et l'efficacité des dépenses publiques consacrées à l'éducation primaire et secondaire dans les pays de l'OCDE. Cette analyse s'appuie sur deux précédentes études, l'une qui a élaboré des indicateurs au niveau de la zone OCDE de l'efficacité des systèmes éducatifs à partir des scores PISA, l'autre des indicateurs des structures institutionnelles à partir des réponses à un questionnaire. Ceci conduit à identifier un certain nombre de structures institutionnelles et de politiques publiques qui semblent induire une efficience accrue, mais aussi des politiques qui semblent nuire à une amélioration des niveaux d'efficacité.
    Keywords: education, dépenses publiques, éducation, public spending, efficiency, efficience, Institutional indicators, Indicateurs institutionnels, efficacité
    JEL: H52 I21 I22 I28
    Date: 2007–06–11
  5. By: Magnus Gulbrandsen (Norwegian Institute for Studies in Research and Education - Centre for Innovation Research); Lars Nerdrum (Norwegian Institute for Studies in Research and Education - Centre for Innovation Research)
    Abstract: This paper analyses the historical role of public research organisations for industrial growth and innovation in Norway – and the changes in this role over time. Public research organisations include research institutes and higher education institutions, and we go back in time to the 19th century. Like many other countries, Norway has a large number research institutes involved in innovation, and these organisations have an equally long history as higher education institutions. Public sector research has co-evolved with the national industrial structure, and institutes and universities have played central roles in developing high technology sectors and activities as well as in modernisations of traditional industries.
    Date: 2007–06
  6. By: von Greiff, Camilo (Dept. of Economics, Stockholm University)
    Abstract: The paper combines optimal taxation theory with human capital theory and develops a theoretical model with endogenous wages and education decision, in which redistributive policy experiments are carried out and assessed. It is argued that general equilibrium effects of labor income taxation on wages may counteract fiscal redistribution. It is also shown that education subsidies may only benefit skilled workers, suggesting that this subsidy can merely be viewed as a redistribution from unskilled to skilled individuals. Therefore, optimal policy involves a lump-sum education tax in the form of a negative education subsidy.
    Keywords: Income Redistribution; Education Subsidies
    JEL: H21 H23
    Date: 2007–06–27
  7. By: Yusuf, Shahid
    Abstract: Talent is the bedrock of a creative society. Augmenting talent involves mobilizing culture and tradition, building institutions to increase the stock of human capital, enhance its quality, and instill values favoring achievements and initiative. The productivity of this talent in the form of ideas can be raised by nurturing wikicapital-the capital arising from networks. Translating creativity into innovation is a function of multiple incentives and sustaining innovation is inseparable from heavy investment in research. Finally, the transition from innovation to commercially viable products requires the midwifery of many service providers and the entrepreneurship skills of firms small and large.
    Keywords: Education for Development (superceded),ICT Policy and Strategies,Tertiary Education,Agricultural Knowledge & Information Systems,Cultural Policy
    Date: 2007–06–01
  8. By: Basant Rakesh; Chandra Pankaj
    Abstract: Education has been recognized as the most important source of competitive advantage for a nation. It is the key determinant of firm level productivity which in turn drives business growth and profitability. Technical knowledge, in particular, is required both for industrial as well as service development. Technical institutions contribute to the growth of business and industry in a variety of ways. The most influential and direct impact is through their graduates who bring in new skills and perspectives to firms. Industries also seek advanced training on specific topics as well as consultancy from technical institutions. Often these institutions collaborate with academics to design and develop new technologies. In this paper we have argued that technical education plays a crucial role in building these capabilities and consequently in the growth of industry. We use the case study of the Indian technical education system to explore the nature of this system, mechanisms used to govern it, linkages between the education regime and the industry, and the roles that different stakeholders play in ensuring that such a regime delivers sustained advantage to the society. We study the business growth in a few select sectors and the changing needs of technical skills therein. These sectors are agricultural implements, auto-components, chemicals, construction, garments and machine tools. We also illustrate the link between technological innovation and technical skills thereby pointing towards the trajectory of developing industrial competitiveness.
    Date: 2007–03–30

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