nep-edu New Economics Papers
on Education
Issue of 2008‒12‒07
seventeen papers chosen by
Joao Carlos Correia Leitao
Technical University of Lisbon

  1. The distributional impact of increased school resources: the Specialist Schools Initiative and the Excellence in Cities Programme By Steve Bradley; Jim Taylor; Giuseppe Migali
  2. Education return and financing : donated affluence as consequence of tuition free study programs in Germany By Hans-Georg Petersen; Markus Kirchner
  3. Education and Mobility By Machin, Stephen; Pelkonen, Panu; Salvanes, Kjell G.
  4. Institutions, Education, and Economic Performance By Lim, Jamus Jerome; Adams-Kane, Jonathon
  5. One size fits all? The effects of teacher cognitive and non-cognitive abilities on student achievement By Grönqvist, Erik; Vlachos, Jonas
  6. Fostering Educational Enrolment Through Subsidies: The Issue of Timing By Mario Fiorini
  7. On the Determinants of Pay of CEOs in UK Public Sector Higher Education Institutions By Bachan, Ray
  8. Home computers and educational outcomes: evidence from the NLSY97 and CPS By Daniel O. Beltran; Kuntal K. Das; Robert W. Fairlie
  9. The governance of University knowledge transfer By Aldo Geuna; Alessandro Muscio
  10. Expanding "Choice" in School Choice By Atila Abdulkadiroglu; Yeon-Koo Che; Yosuke Yasuda
  11. Admission conditions and graduates' employability By Fernando Alexandre; Miguel Portela; Carla Sá
  12. Peer Effects and Social Networks in Education By Calvó-Armengol, Antoni; Patacchini, Eleonora; Zenou, Yves
  13. Do Credit Constraints Matter more for College Dropout Entrepreneurs? By Werner, Arndt
  14. School desegregation, school choice and changes in residential location patterns by race By Nathaniel Baum-Snow; Byron Lutz
  15. Estimating the Returns to Schooling: A Likelihood Approach Based on Normal Mixtures By John K. Dagsvik, Torbjørn Hægeland and Arvid Raknerud
  16. Why Do Researchers Collaborate with Industry? An analysis of the wine sector in Chile, South Africa and Italy By Elisa Giuliani; Andrea Morrison; Carlo Pietrobelli; Roberta Rabellotti
  17. Collaboration networks as carriers of knowledge spillovers: Evidence from EU27 regions By Jarno Hoekman; Koen Frenken; Frank van Oort

  1. By: Steve Bradley; Jim Taylor; Giuseppe Migali
    Abstract: This paper estimates the impact of two flagship education policies, the Specialist Schools initiative and the Excellence in Cities programme, on the attainment of secondary school pupils in England. The focus is on their relative impact across gender, ethnic and socio-economic groups. Using pupil-level data, we find, first, that the EiC programme has been substantially more effective than the specialist schools initiative in raising the attainment of ethnic minority pupils, particularly Asians. Second, the Specialist Schools initiative has favoured pupils from economically advantaged families whereas the EiC programme has been more effective in raising the attainment of pupils from poor families. Third, both policies have been more effective for girls than for boys, thereby contributing to the educational gender gap.
    Keywords: Ethnicity, Gender, Test scores, Excellence in Cities, Specialist schools
    Date: 2008
  2. By: Hans-Georg Petersen; Markus Kirchner
    Abstract: The paper sheds some light on the education returns in Germany in the post war period. After describing higher education in Germany the current stand of higher education financing within the single states is presented. In six states tuition fees will be introduced in 2007/08 and discussions are going on in even some more. In the second part of the paper an empirical analysis is done using longitudinal data from the German social pension system. The analysis over the whole lifecycle renders results which proof that the higher education advantages are quite remarkable and might be a justification for more intensified financing by tuition fees. But all this has to be embedded into an encompassing strategy of tax and social policy, especially to prevent a strengthened process of social selection, which would be counterproductive for an increased and highly qualified human capital in Germany.
    Keywords: education return, tuition fees, tertiary education, vocational education, human capital, lifetime income, income contingent loans
    JEL: J26 J24 J13 I28 I22 I21 H81 D14 D1
    Date: 2008–01
  3. By: Machin, Stephen (University College London); Pelkonen, Panu (London School of Economics); Salvanes, Kjell G. (Norwegian School of Economics and Business Administration)
    Abstract: We show that the length of compulsory education has a causal impact on regional labour mobility. The analysis is based on a quasi-exogenous staged Norwegian school reform, and register data on the whole population. Based on the results, we conclude that part of the US-Europe difference, as well as the European North-South difference in labour mobility, is likely to be due to differences in levels of education in the respective regions.
    Keywords: labour market, mobility, education
    JEL: I28 J24 J61
    Date: 2008–11
  4. By: Lim, Jamus Jerome; Adams-Kane, Jonathon
    Abstract: This paper considers the interactions between governance, educational outcomes, and economic performance. More specifically, we seek to establish the linkages by which institutional quality affect growth by considering its mediating impact on education. While the contribution of both human capital and institutions to growth are often acknowledged, the channels by which institutions affect human capital and, in turn, growth, has been relatively underexplored. Our empirical approach adopts a two-stage strategy that estimates national-level educational production functions which include institutional governance as a covariate, and uses these estimates as instruments for human capital in cross-country growth regressions.
    Keywords: Institutions; human capital; education; economic growth
    JEL: O43 H11 O15
    Date: 2008–10–28
  5. By: Grönqvist, Erik (IFAU - Institute for Labour Market Policy Evaluation); Vlachos, Jonas (Department of Economics, Stockholm University)
    Abstract: Teachers are increasingly being drawn from the lower parts of the general ability distribution, but it is not clear how this affects student achievement. We track the position of entering teachers in population-wide cognitive and non-cognitive ability distributions using school grades and draft records from Swedish registers. The impact on student achievement caused by the position of teachers in these ability distributions is estimated using matched student-teacher data. On average, teachers’ cognitive and non-cognitive social interactive abilities do not have a positive effect on student performance. However, social interactive ability turns out to be important for low aptitude students, whilst the reverse holds for cognitive abilities. In fact, while high performing students benefit from high cognitive teachers, being matched to such a teacher can even be detrimental to their lower performing peers. Hence, the lower abilities among teachers may hurt some students, whereas others may even benefit. High cognitive and non-cognitive abilities thus need not necessarily translate into teacher quality. Instead, these heterogeneities highlight the importance of the student-teacher matching process.
    Keywords: Cognitive and non-cognitive ability; teacher quality; student achievement
    JEL: I21
    Date: 2008–11–11
  6. By: Mario Fiorini (School of Finance and Economics, University of Technology, Sydney)
    Abstract: In this paper we build a dynamic structural model of educational choices in which cognitive skills shape decisions. The model is estimated by maximum likelihood using cohort data where individuals are observed from birth onwards. These data are unique in that they include cognitive skills test scores collected as early as age 7. We then simulate the e?ect of two educational subsidies equal in cost but different in the timing of disbursement. The ?rst consists of grants assigned directly to individuals aged between 16 and 18. The second is assigned to the parents earlier on, when the cohort is still in its childhood. The latter subsidy affects cognitive skills accumulation and in turn educational choices. Our results suggest that a direct grant in the form of a tuition subsidy might be more efficient even in the absence of short term ?nancial constraints. Although cognitive skills accumulated during childhood play a key role in the educational decisions, an unconditional ?nancial subsidy to parents is not the best policy. The results do not call a halt to investments in cognitive skill accumulation during childhood, but recommend that such investments should be well structured and ensure a high return.
    Keywords: educational decisions; dynamic structural estimation; tuition subsidy; parental income subsidy
    JEL: I21 I28 J24 J31
    Date: 2008–05–01
  7. By: Bachan, Ray (University of Brighton)
    Abstract: The pay determining process of CEOs of UK higher education institutions is modelled using three econometric methodologies applied to a large and unique dataset for the academic years 1997/98 through to 2005/06. A gender differential in pay is detected and this differential remains robust across the specifications reported and across higher education sub-sectors. There is evidence that CEOs with industrial work experience and those who have been employed by a higher education body earn more than their counterparts without these attributes. We also find that CEOs are rewarded favourably on the termination of their contracts. There is little evidence that institutional characteristics influence pay after controlling for institution fixed effects. There is only limited evidence that they are rewarded for the 'performance' of the institutions they manage, but are rewarded favourably by increasing the volume of tuition fees. There is some support for 'tournament theory' as an explanation for the determination of CEO pay in this labour market.
    Keywords: CEO, pay, performance, public sector, higher education, fixed effects
    JEL: J45 M5 M12
    Date: 2008–11
  8. By: Daniel O. Beltran; Kuntal K. Das; Robert W. Fairlie
    Abstract: Although computers are universal in the classroom, nearly twenty million children in the United States do not have computers in their homes. Surprisingly, only a few previous studies explore the role of home computers in the educational process. Home computers might be very useful for completing school assignments, but they might also represent a distraction for teenagers. We use several identification strategies and panel data from the two main U.S. datasets that include recent information on computer ownership among children--the 2000-2003 CPS Computer and Internet Use Supplements (CIUS) matched to the CPS Basic Monthly Files and the National Longitudinal Survey of Youth 1997--to explore the causal relationship between computer ownership and high school graduation and other educational outcomes. Teenagers who have access to home computers are 6 to 8 percentage points more likely to graduate from high school than teenagers who do not have home computers after controlling for individual, parental, and family characteristics. We generally find evidence of positive relationships between home computers and educational outcomes using several identification strategies, including controlling for typically unobservable home environment and extracurricular activities in the NLSY97, fixed effects models, instrumental variables, and including future computer ownership and falsification tests. Home computers may increase high school graduation by reducing non-productive activities, such as truancy and crime, among children in addition to making it easier to complete school assignments.
    Date: 2008
  9. By: Aldo Geuna (SPRU, University of Sussex & Department of Economics S. Cognetti de Martiis, University of Turin); Alessandro Muscio (GRIF, Università Luiss Guido Carli)
    Keywords: European Universities, Knowledge Transfer, Governance, Intellectual Property, Knowledge Transfer Organization
    JEL: I23 O3
    Date: 2008–01–09
  10. By: Atila Abdulkadiroglu (Duke University - Department of Economics); Yeon-Koo Che (Columbia University - Department of Economics); Yosuke Yasuda (Columbia University - Department of Economics)
    Abstract: Truthful revelation of preferences has emerged as a desideratum in the design of school choice programs. Gale-Shapley's deferred acceptance mechanism is strategy-proof for students but limits their ability to communicate their preference intensities. This results in ex-ante inefficiency when ties at school preferences are broken randomly. We propose a variant of deferred acceptance mechanism which allows students to influence how they are treated in ties. It maintains truthful revelation of ordinal preferences and supports a greater scope of efficiency.
    Date: 2008
  11. By: Fernando Alexandre (Universidade do Minho - NIPE); Miguel Portela (Universidade do Minho - NIPE and IZA); Carla Sá (Universidade do Minho - NIPE and CIPES)
    Abstract: We evaluate the information content of admission conditions for study programs’ quality by investigating its relationship with graduates’ employability. We find that study programs with larger numeri clausi are associated with a higher probability of finding a job. Additionally, compulsory admission exams seem to be informative about study programs’ quality. Namely, study programs requiring the Math exam appear to be linked with lower unemployment propensity. Cardoso et al. (2008), however, found that those programs face lower demand when compared to other studies. These paradoxical results suggest that students’ choices may be based on insufficient information on returns to higher education investment. That information failure indicates that a Government intervention may be due.
    Keywords: Higher education; unemployment propensity; fractional models
    JEL: C21 I21 J23 J64
    Date: 2008
  12. By: Calvó-Armengol, Antoni (Universitat Autònoma de Barcelona); Patacchini, Eleonora (University of Rome La Sapienza); Zenou, Yves (Stockholm University)
    Abstract: This paper studies whether structural properties of friendship networks affect individual outcomes in education. We first develop a model that shows that, at the Nash equilibrium, the outcome of each individual embedded in a network is proportional to her Katz-Bonacich centrality measure. This measure takes into account both direct and indirect friends of each individual but puts less weight to her distant friends. We then bring the model to the data by using a very detailed dataset of adolescent friendship networks. We show that, after controlling for observable individual characteristics and unobservable network specific factors, the individual's position in a network (as measured by her Katz-Bonacich centrality) is a key determinant of her level of activity. A standard deviation increase in the Katz-Bonacich centrality increases the pupil school performance by more than 7 percent of one standard deviation.
    Keywords: centrality measure, peer influence, network structure, school performance
    JEL: A14 C31 C72 I21
    Date: 2008–11
  13. By: Werner, Arndt
    Abstract: Start-ups and their respective market partners are faced with severe problems of asymmetric information due to their lack of prior production history and reputation. Given this situation, it is most likely that outside financiers will not be informed about the potential gains, losses, and risks of the new venture. In our paper, we study how banks screen the abilities of the entrepreneurs. We argue that specific characteristics of the educational history of individuals signal their quality as founders. Namely, we expect banks to also use “college dropout” as an indicator when deciding to extend credit to a founder. We empirically test our hypotheses using a dataset of 189 German start-ups collected in 1998/99. Our hypothesis is borne out by the data. Applying ordered probit techniques we find that college dropouts have more difficulties to obtain the credit they need in the beginning of their start-up than those without college dropout experience.
    Keywords: adverse selection; financial constraints; entrepreneurship; education
    JEL: G14 D82 M13 M21
    Date: 2008–11–01
  14. By: Nathaniel Baum-Snow; Byron Lutz
    Abstract: This paper examines the residential location and school choice responses to desegregation of large public school districts. Unique data and variation in the timing of desegregation orders facilitate the analysis. The 16 percent decline in white public enrollment due to desegregation primarily led to migration to suburban districts in the South and increased private enrollment in other regions. Desegregation caused black public enrollment to increase by 20 percent outside the South largely due to population changes. The spatial distributions of responses by race to desegregation orders closely match those predicted by a model of residential location and private school choice.
    Date: 2008
  15. By: John K. Dagsvik, Torbjørn Hægeland and Arvid Raknerud (Statistics Norway)
    Abstract: In this paper we develop likelihood based methods for statistical inference in a joint system of equations for the choice of length of schooling and earnings. The model for schooling choice is assumed to be an ordered probit model, whereas the earnings equation contains variables that are flexible transformations of schooling and experience, with corresponding coefficients that are allowed to be heterogeneous across individuals. Under the assumption that the distribution of the random terms of the model can be expressed as a particular finite mixture of multinormal distributions, we show that the joint probability distribution for schooling and earnings can be expressed on closed form. In an application of our method on Norwegian data, we find that the mixed Gaussian model offers a substantial improvement in fit to the (heavy-tailed) empirical distribution of log-earnings compared to a multinormal benchmark model.
    Keywords: Schooling choice; earnings equation; normal mixtures; treatment effects; self-selection; random coefficients; full information maximum likelihood
    JEL: C31 I20 J30
    Date: 2008–12
  16. By: Elisa Giuliani (Dipartimento di Economia Aziendale, Pisa University - Italy and SPRU, University of Sussex); Andrea Morrison (Department of Economic Geography, Utrecht University and CESPRI Bocconi University, Milan - Italy); Carlo Pietrobelli (CREI, Università Roma Tre, Roma - Italy); Roberta Rabellotti (Dipartimento di Scienze Economiche e Metodi Quantitativi, Università del Piemonte Orientale, Novara - Italy)
    Abstract: This paper explores the determinants of the linkages between industry and research organizations – including universities. We present new evidence on three wine producing areas – Piedmont, a region of Italy, Chile, South Africa - that have successfully reacted to the recent structural changes experienced in the industry worldwide. Based on an original dataset, we carry out an econometric exercise to study the microeconomic determinants of researchers’ collaborations with industry. The evidence reveals that individual researcher characteristics, such as embeddedness in the academic system, age and sex, matter more than their publishing record or formal degrees
    Keywords: University-Industry Linkages, Innovation System, Wine Sector, Emerging Economies
    JEL: O30 O38 O13
    Date: 2008–05
  17. By: Jarno Hoekman (Urban & Regional research centre Utrecht (URU), Utrecht University - The Netherlands); Koen Frenken (Urban & Regional research centre Utrecht (URU), Utrecht University - The Netherlands); Frank van Oort (Netherlands Institute for Spatial Research (RPB)- The Netherlands)
    Abstract: The geography of innovation traditionally concentrates on localised knowledge spillovers, yet neglects collaboration networks as a means to access knowledge outside the region. Using publication and patent data for 1316 regions in the EU27 plus Norway and Switzerland, we find that both localised knowledge spillovers and the knowledge spillovers stemming from collaboration affect the innovative performance of regions. The results provide support for EU policies aimed at creating European collaboration networks.
    Keywords: Knowledge Production Function, Spillovers, Collaboration, Networks, European Research Area, Publication, Patent, Public Good
    JEL: C21 O30 O33 O52 R11
    Date: 2008–09

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