nep-edu New Economics Papers
on Education
Issue of 2008‒11‒25
nineteen papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. Network Effects in a Human Capital Based Economic Growth Model By Teresa V. Martins; Tanya Araújo; Maria A. Santos; Miguel St Aubyn
  2. Education-Occupation Mismatch: Is There an Income Penalty? By Nordin, Martin; Persson, Inga; Rooth, Dan-Olof
  3. External Return to Education in Poland By Strawinski, Pawel
  4. Imagining Education: Educational Policy and the Labor Earnings Distribution By Diego Amador
  5. Commercial Incentives in Academia By Albert Banal-Estañol; Inés Macho-Stadler
  6. Biological versus foster children education : the old-age support motive as a catch-up determinant ? Some evidence from Indonesia. By Karine Marazyan
  7. Credential Changes and Education Earnings Premia in Australia By Michael Coelli; Roger Wilkins
  8. The Determinants of University Participation in Canada (1977−2003) By Christofides, Louis N.; Hoy, Michael; Yang, Ling
  9. Multilevel modeling of educational longitudinal data with crossed random effects By Minjeong Jeon; Sophia Rabe-Hesketh
  10. The Impact of Entrepreneurship Education on Entrepreneurship Competencies and Intentions: An Evaluation of the Junior Achievement Student Mini-Company Program By Oosterbeek, Hessel; van Praag, Mirjam; IJsselstein, Auke
  11. Child Support and Educational Outcomes: Evidence from the British Household Panel Survey By Ian Walker; Yu Zhu
  12. Central exit examinations increase performance... but take the fun out of mathematics By Kerstin Schneider; Hendrik Jürges
  13. The Optimal Composition of Government Expenditure withTransfer Payments, Education Expenditure and a Public Good By John Creedy; Solmaz Moshlehi
  14. The Impact of Industry Collaboration on Academic Research Output: A Dynamic Panel Data Analysis By Albert Banal-Estañol; Mireia Jofre-Bonet; Cornelia Meissner
  15. Literacy, Skills and Welfare: Effects of Participation in an Adult Literacy Program By Niels-Hugo Blunch; Claus C Pörtner
  16. Measures of Science & Technology in Ecuador By José Luis, Massón-Guerra
  17. Constrained School Choice: An Experimental Study By Caterina Calsamiglia; Guillaume Haeringer; Flip Klijn
  18. Should we raise public expenditure on basic education and reduce expenditure at college? By Marisa Hidalgo-Hidalgo; Iñigo Iturbe-Ormaetxe
  19. The Human Development Index as a Criterion for Optimal Planning By Merwan Engineer; Ian King; Nilanjana Roy

  1. By: Teresa V. Martins; Tanya Araújo; Maria A. Santos; Miguel St Aubyn
    Date: 2008–09
  2. By: Nordin, Martin (Lund University); Persson, Inga (Lund University); Rooth, Dan-Olof (Kalmar University)
    Abstract: This paper adds to the small literature on the consequences of education-occupation mismatches. It examines the income penalty for field of education-occupation mismatches for men and women with higher education in Sweden and reveals that the penalty for such mismatches is large for both men and women. In fact, it is substantially larger than has been found for the US. Controlling for cognitive ability further establishes that the income penalty is not caused by a sorting by ability, at least for Swedish men. The income penalty for men decreases with work experience which is an indication that education-specific skills and work experience are substitutes to some extent. There is no evidence, though, that the mismatched individuals move to a matching occupation over time. Thus, for some, the income penalty seems to be permanent.
    Keywords: salary wage differentials, rate of return, human capital, educational economics
    JEL: I21 J24 J31
    Date: 2008–10
  3. By: Strawinski, Pawel
    Abstract: In the article social rate of return to education is considered. As is pointed out in various research papers social return rate exceeds the pure technical rate of return by considerable margin. However, it is hard to calculate adequate figure due to methodological and data problems. The model used in the article is based on a comparative advantage theory. It contains two equations: one for technical and social rate of return to education, second deals with non-random selection for different education regimes. We find that private rate of return is over 7% yearly and therefore is still among the highest in Europe and there exists additional 1.5% social return to higher education.
    Keywords: return to education; private returns; external return
    JEL: O15 I22
    Date: 2008–06–05
  4. By: Diego Amador
    Abstract: This paper simulates, within a partial equilibrium framework, the scenarios resulting form the implementation of several educational policies. Then, policies are compared according to their hypothetical results in terms of labor earnings inequality, as measured by the Gini coefficient. Results suggest that educational policies which attempt to guarantee medium qualification produce the lowest inequality even if dispersion in schooling years is high. Policies which attempt to raise tertiary education coverage but do not raise high school coverage as well, lead to rising inequality.
    Date: 2008–10–16
  5. By: Albert Banal-Estañol (Department of Economics, City University, London); Inés Macho-Stadler (Universitat Autònoma de Barcelona, Departament d’Economia i d’Història Econòmica)
    Abstract: This paper investigates the effects of monetary rewards from commercialisation on the pattern of research. We build a simple repeated model of a researcher capable to obtain innovative ideas. We analyse how academic and market incentives affect the allocation of the researcher’s time between research and development. We argue, however, that technology transfer objectives also affect the choice of research projects. Although commercialisation incentives reduce the time spent in research, they might also induce researchers to conduct research that is more basic in nature, contrary to what the “skewing problem” would presage. Monetary rewards induce a more intensive search for (ex-post) path-breaking innovations, which are more likely to be generated through (ex-ante) basic research programs. These results are shown to hold even if development delays publication.
    Keywords: Faculty behaviour, basic vs. applied research
    Date: 2008–11
  6. By: Karine Marazyan (Centre d'Economie de la Sorbonne)
    Abstract: This paper aims at explaining differences in education among foster-children and between foster and biological children in developing countries. Foster-children whose biological parents are alive may provide old-age support for both their host and biological parents. Therefore foster-children have lower returns to education than biological children and should receive less human capital investment in household where both types of children live together. However, in households where foster-children are alone, host parents will over-invest in their education to ensure that the expected old-age support will equal a minimum amount to survive. Using data from Indonesia, we provide some evidence supporting our hypothesis.
    Keywords: Household structure, child fostering, sibling rivalry.
    JEL: I2 J1 O1
    Date: 2008–07
  7. By: Michael Coelli; Roger Wilkins
    Abstract: We find that post-school education earnings premia have remained strikingly stable over the 1981 to 2003-04 period in Australia. This stability is in sharp contrast to the rising college premium observed in the US. The observed stability in Australia may in part be due to changes in the credentials earned by individuals entering certain professional occupations during the 1980s and early 1990s, particularly for females. We provide an estimate of the potential effect of within-occupation credential changes on estimates of education earnings premia in Australia over time. Our focus is on credential changes within the nursing and teaching professions, which have moved from predominately certificate and diploma qualifications to university bachelor’s degree or higher as the standard qualification
    Keywords: education; earnings structure; wage premium; credentials; Australia
    JEL: I20 J24 J31
    Date: 2008
  8. By: Christofides, Louis N. (University of Cyprus); Hoy, Michael (University of Guelph); Yang, Ling (Wilfrid Laurier University)
    Abstract: The decision to attend university is influenced by the balance of the expected returns and costs of attending university, by liquidity constraints and capital market imperfections that may modify these calculations and, hence, by the family income of prospective students. Family circumstances also play a role. We examine the secular increase in the propensity of children from Canadian families, evident in annual surveys spanning two and a half decades, to attend university. We quantify the importance of these factors taking account of the greater propensity by young women than men to attend university and controlling for secular trends in socioeconomic norms that impinge on these decisions.
    Keywords: university participation, parental education, university premium, gender, tuition, income, societal trends
    JEL: I21 J01 J24
    Date: 2008–10
  9. By: Minjeong Jeon (University of California, Berkeley); Sophia Rabe-Hesketh (University of California, Berkeley)
    Abstract: We consider multilevel models for longitudinal data where membership in the highest level units changes over time. The application is a four-year study of Korean students who are in middle school during the first two waves and in high school during the second two waves, where middle schools and high schools are not nested. The model includes crossed random effects for middle schools and high schools and can be estimated using Stata¡¯s xtmixed command. An important consideration is how the impact of the middle school and high school random effects on the response variable should change over time.
    Date: 2008–11–16
  10. By: Oosterbeek, Hessel (University of Amsterdam); van Praag, Mirjam (University of Amsterdam); IJsselstein, Auke (University of Amsterdam)
    Abstract: This paper analyzes the impact of a leading entrepreneurship education program on college students’ entrepreneurship competencies and intentions using an instrumental variables approach in a difference-in-differences framework. We exploit that the program was offered to students at one location of a school but not at another location of the same school. Location choice (and thereby treatment) is instrumented by the relative distance of locations to parents’ place of residence. The results show that the program does not have the intended effects: the effect on students’ self-assessed entrepreneurial skills is insignificant and the effect on the intention to become an entrepreneur is even significantly negative.
    Keywords: entrepreneur competencies, program evaluation, entrepreneurship education, entrepreneur intentions
    JEL: A20 C31 H43 H75 J24 L26
    Date: 2008–08
  11. By: Ian Walker; Yu Zhu
    Abstract: There is someevidence to support the view that Child Support (CS), despite low compliance rates and a strong interaction with the welfare system, has played a positive role in reducing child poverty among non-intact families. However, relatively little research has addressed the role of CS on outcomes for the children concerned. There are good reasons for thinking that CS could leverage better outcomes than other forms of income support and, using a sample of dependent children in non-intact families from the British Household Panel Survey (BHPS), we find that CS received has an effect which is at least 10 times as large as that associated with variations in other sources of total household net income for two key educational outcomes: namely school leaving at the age of 16, and attaining 5 or more good GCSEs. We show that this remarkable and strong result is robust and, in particular, can be given a causal interpretation.
    Keywords: parental separation; parental incomes; child support; educational outcomes
    JEL: D13 D31 K12 J13 J22
    Date: 2008–11
  12. By: Kerstin Schneider (Department of Economics University of Wuppertal); Hendrik Jürges (MEA Universität Mannheim)
    Abstract: In response to PISA, all German federal states but one have adopted central exit examinations (CEEs) at the end of all secondary school tracks. Theoretically, the advantages of CEEs are fairly undisputed. CEEs make teaching and learning output observable and comparable across schools, and provide incentives for teachers and students to increase their effort. In line with earlier research, we confirm that CEEs have a positive causal effect on student performance. We also investigate what actually drives this effect. We find that the teachers' main reaction to CEEs is to increase the amount of homework, and to check and discuss homework more often. Students report increased learning pressure, which has sizeable negative effects on student attitudes towards learning. Students who take central exit exams in mathematics like mathematics less, think it is less easy and they are more likely to find it boring.
    Keywords: High-stakes testing, student achievement, teacher quality
    JEL: I28 H42 D02
    Date: 2008–06
  13. By: John Creedy; Solmaz Moshlehi
    Abstract: This paper examines the optimal allocation of tax revenue among a universal transfer payment, a pure public good and expenditure on education. Using a single-period framework, education expenditure raises the productivity of individuals via a human capital production function. The social welfare function is based on individuals’ (indirect) utilities. Education creates a substantial fiscal spillover whereby the increase in human capital gives rise to higher labour earnings and thus higher income tax revenue, thereby allowing greater government expenditure on all items than would otherwise be possible. A higher inequality of exogenous ability levels is found to increase all types of expenditure, but only the transfer increases in relative terms. Higher inequality aversion leads to an increase in transfer payments in absolute and relative terms, at the expense of the other two components. However, the effects are small so that different judges may display little disagreement concerning optimal expenditure shares. An increase in the elasticity of the wage with respect to basic ability implies that education is less effective in raising the average level of productivity, which leads to the planner reducing education spending which leaves more tax revenue available for spending on transfer payments and the public good.
    Keywords: n/a
    Date: 2008
  14. By: Albert Banal-Estañol (Department of Economics, City University, London); Mireia Jofre-Bonet (Department of Economics, City University, London); Cornelia Meissner (Department of Economics, City University, London)
    Abstract: The aim of this paper is to analyse the impact of university knowledge and technology transfer activities on academic research output. Specifically, we study whether researchers with collaborative links with the private sector publish less than their peers without such links, once controlling for other sources of heterogeneity. We report findings from a longitudinal dataset on researchers from two engineering departments in the UK between 1985 until 2006. Our results indicate that researchers with industrial links publish significantly more than their peers. Academic productivity, though, is higher for low levels of industry involvement as compared to high levels.
    Date: 2008–11
  15. By: Niels-Hugo Blunch; Claus C Pörtner
    Abstract: This paper examines the effects of adult literacy program participation on household consumption in Ghana. We use community fixed effects combined with instrumental variables to account for possible endogenous program placement and self-selection into program participation. For households where none of the adults have completed any formal education we find a substantial, positive and statistically significant effect on household consumption. Our preferred estimate of the effect of participation for households without education is equivalent to a ten percent increase in consumption per adult equivalent. There is, however, little evidence that other households benefit from participation in terms of welfare. The improvements in literacy and numeracy rates are also mainly concentrated among participants with little or no formal schooling, although most participants appear to gain in skills to some extent. Taking account of both direct cost and opportunity cost we argue that the social returns to adult literacy programs are substantial.
    Date: 2005–09
  16. By: José Luis, Massón-Guerra
    Abstract: One of the structural problems in Latin-American has been the lower innovative capacity and lower generation of economically exploitable knowledge. This phenomenon has been produced by the absence of government’s incentives and strategies in order to be competitive inside the Knowledge Based Economy. More concretely, political, institutional and social factors have contributed negatively within this reality. As a consequence, the knowledge generation in this region is insufficient not only to satisfy its necessities but also to be competitive in the global context. At difference, the developing regions have recognized the significance impact of Science and Technology (S&T) and Education in their sustainable growth. In the Latin-American context, this analysis requires robust indicators that help to evidence the causes of this problematic. In this respect, the absence of harmonized politics and common variables that allows studying the evolution of S&T in the Latin-American region is the main limitation for this analysis. Based on that, this report brings an exploratory analysis that allows identifying the critical factors and the possible solutions of this S&T problematic. In parallel, the case of the National Innovation System implanted in Ecuador is presented and evaluated.
    Keywords: Science; Technology; Entrepreneurship; Innovation
    JEL: Q55 O32 L26 M13 O31
    Date: 2008–05–02
  17. By: Caterina Calsamiglia; Guillaume Haeringer; Flip Klijn
    Abstract: The literature on school choice assumes that families can submit a preference list over all the schools they want to be assigned to. However, in many real-life instances families are only allowed to submit a list containing a limited number of schools. Subjects' incentives are drastically affected, as more individuals manipulate their preferences. Including a safety school in the constrained list explains most manipulations. Competitiveness across schools play an important role. Constraining choices increases segregation and affects the stability and efficiency of the final allocation. Remarkably, the constraint reduces significantly the proportion of subjects playing a dominated strategy.
    Keywords: school choice, matching, experiment
    JEL: C72 C78 D78 I20
    Date: 2008–11–17
  18. By: Marisa Hidalgo-Hidalgo (Department of Economics, Universidad Pablo de Olavide); Iñigo Iturbe-Ormaetxe (Department of Economics, Universidad de Alicante)
    Abstract: This paper analyzes public intervention in education, taking into account the existence of two educational levels: basic education and college education. The government decides per capita expenditure at each level and the subsidy for college education. We explore the effect of transferring money from one level to the other on equity and efficiency. We find that there is always a policy reform that satisfies both the objectives of equity and efficiency, where efficiency refers to average productivity of college graduates. For developed countries, this policy consists of transferring resources from college education to basic education.
    Keywords: Basic education, college education, public expenditure in education.
    JEL: H52 I28 J24
    Date: 2008–11
  19. By: Merwan Engineer; Ian King; Nilanjana Roy
    Abstract: Planning strategies that maximize the Human Development Index (HDI) tend towards minimizing consumption and maximizing non-investment expenditures on education and health. Interestingly, such strategies also tend towards equitable outcomes, even though inequality aversion is not modelled in the HDI. A problematic feature of strategies that maximize the HDI is that the income component in the index only role is to distort the allocation between health and education expenditure. Because the income component does not play its intended role of securing resources for a decent standard of living, we argue that it is better to drop income from the index in considering optimal plans. Alternatively, we consider net income, income net of education and health expenditures, as indicator of capabilities not already reflected in the education and life expectancy components of the index. When net income is used in a modified HDI index, optimal plans yield a balance between allocations for consumption, education, and health. Finally, we calculate our modified indexes for OECD countries and compare them with the HDI.
    Keywords: Consumption; Human development index; Income; Inequality; Planning
    JEL: O21 O15
    Date: 2008

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