nep-edu New Economics Papers
on Education
Issue of 2010‒10‒23
eleven papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. A Foundation System and a State System - Private-School Implications on Welfare and Education Expenditure By Andrzej Kwiatkowski
  2. The demand for private schooling in England: the impact of price and quality By Richard Blundell; Lorraine Dearden; Luke Sibieta
  3. Estimating marginal returns to education By Pedro Carneiro; James Heckman; Edward Vytlacil
  4. Looking Beyond Literacy: Disparities in Levels of and Access to Education in a Kerala Village By Suma Scaria
  5. What determines private school choice? a comparison between the UK and Australia By Lorraine Dearden; Chris Ryan; Luke Sibieta
  6. Starting school and leaving welfare: the impact of public education on lone parents' welfare receipt By Mike Brewer; Claire Crawford
  7. Globalization and the Composition of Public Education Expenditures: A Dynamic Panel Analysis By Baskaran, Thushyanthan; Hessami, Zohal
  8. Is grade repetition one of the causes of early school dropout? :Evidence from Senegalese primary schools. By André, Pierre
  9. Gender disparities in completing school education in India: Analyzing regional variations By Husain, Zakir
  10. Financing Higher Education in Tunisia By Tahar Abdessalem
  11. Could education promote the Israeli-Palestinian peace process? By Mayssun El-Attar

  1. By: Andrzej Kwiatkowski
    Abstract: This paper examines the effects of two different education financing systems: a foundation system and a state system on the level and distribution of resources devoted to education in the presence of private schools. We use political economy approach where households differ in their level of income, and the central tax rate used to finance education is determined by a majority vote. Our analysis focuses on implications of allowing for a private-school option. To evaluate the importance of private schools we develop a computational model and calibrate it using USA data. The results reveal that the private school option is very important quantitatively in terms of welfare, total resources spent on education and equity.
    Keywords: Education finance reform, Private schools
    JEL: I22 I28 H42
    Date: 2010–10
  2. By: Richard Blundell (Institute for Fiscal Studies and University College London); Lorraine Dearden (Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London); Luke Sibieta (Institute for Fiscal Studies)
    Abstract: <p><p><p>In this paper we use English school level data from 1993 to 2008 aggregated up to small neighbourhood areas to look at the determinants of the demand for private education in England from the ages of 7 until 15 (the last year of compulsory schooling). We focus on the relative importance of price and quality of schooling. However, there are likely to be unobservable factors that are correlated with private school prices and/or the quality of state schools that also impact on the demand for private schooling which could bias our estimates. Our long regional and local authority panel data allows us to employ a number of strategies to deal with this potential endogeneity. Because of the likely presence of incidental trends in our unobservables, we employ a double difference system GMM approach to remove both fixed effects and incidental trends. We find that the demand for private schooling is inversely related to private school fees as well as the quality of state schooling in the local area at the time families were making key schooling choice decisions at the ages of 7, 11 and 13. We estimate that a one standard deviation increase in the private school day fee when parents/students are making these key decisions reduces the proportion attending private schools by around 0.33 percentage points which equates to an elasticity of around -0.26. This estimate is only significant for choices at age 7 (but the point estimates are very similar at the ages of 11 and 13). At age 11 and age 13, an increase in the quality of local state secondary reduces the probability of attending private schools. At age 11, a one standard deviation increase in state school quality reduces participation in private schools by 0.31 percentage points which equates to an elasticity of -0.21. The effect at age 13 is slightly smaller, but still significant. Demand for private schooling at the ages of 8, 9, 10 and 12, 14 and 15 are almost entirely determined by private school demand in the previous year for the same cohort, and price and quality do not impact significantly on this decision other than through their initial influence on the key participation decisions at the ages of 7, 11 and 13. </p></p></p>
    Date: 2010–09
  3. By: Pedro Carneiro (Institute for Fiscal Studies and University College London); James Heckman (Institute for Fiscal Studies and University of Chicago); Edward Vytlacil (Institute for Fiscal Studies and Columbia University)
    Abstract: <p>This paper estimates the marginal returns to college for individuals induced to enroll in college by different marginal policy changes. The recent instrumental variables literature seeks to estimate this parameter, but in general it does so only under strong assumptions that are tested and found wanting. We show how to utilize economic theory and local instrumental variables estimators to estimate the effect of marginal policy changes. Our empirical analysis shows that returns are higher for individuals more likely to attend college. We contrast the returns to well-defined marginal policy changes with IV estimates of the return to schooling. Some marginal policy changes inducing students into college produce very low returns.</p>
    Date: 2010–10
  4. By: Suma Scaria
    Abstract: This paper makes an attempt at understanding why inequalities continue to exist in the educational profile of the population despite high literacy, universal enrollment in schools and relatively better infrastructural facilities. In this connection, the questions relating to entry barriers in higher education and labour market outcomes gain considerable significance.
    Keywords: kerala, village, population, literacy, enrollment, schools, educational, infrastructural, entry barriers, education, labour market, inequalities, access,
    Date: 2010
  5. By: Lorraine Dearden (Institute for Fiscal Studies and Bedford Group, Institute of Education, University of London); Chris Ryan; Luke Sibieta (Institute for Fiscal Studies)
    Abstract: <p><p>This paper compares patterns of private school attendance in the UK and Australia. About 6.5% of school children in the UK attend a private school, while 33% do so in Australia. We use comparable household panel data from the two countries to model attendance at a private school at age 15 or 16 as a function of household income and other child and parental characteristics. As one might expect, we observe a strong effect of household income on private school attendance. The addition of other household characteristics reduces this income elasticity, and reveals a strong degree of intergenerational transmission in both countries, with children being 8 percentage points more likely to attend a private school if one of their parents attended one in the UK, and anywhere up to 20 percentage points more likely in Australia. The analysis also reveals significant effects of parental education level, political preferences, religious background and the number of siblings on private school attendance. </p></p>
    Date: 2010–09
  6. By: Mike Brewer (Institute for Fiscal Studies); Claire Crawford (Institute for Fiscal Studies)
    Abstract: <p>Childcare costs are often viewed as one of the biggest barriers to work, particularly among lone parents on low incomes. Children in England are typically eligible to start school - and thus access a number of hours of free public education - on 1 September after they turn four. This means that children born one day apart may start school up to one year apart. We exploit this discontinuity to investigate the impact of youngest child being eligible for full-time primary education (relative to part-time nursery education) on welfare receipt and employment patterns amongst lone parents receiving welfare. In contrast to previous studies, we are able to estimate the precise timing (relative to the date when full-time education begins) of any impact on labour supply, by using rich administrative data. Amongst those receiving welfare when their youngest child is aged approximately three and a half, we find a small but significant effect on both employment and welfare receipt (of around 2 percentage points, or 10‐15 per cent), which peaks eight to nine months after the child becomes eligible (aged approximately 4 years and 9 months). We also find some evidence of a smaller effect of eligibility for part‐time nursery education on lone parents' labour supply. This suggests that the expansion of public education programmes to younger disadvantaged children may only encourage a small number of low income lone parents to return to work.</p>
    Keywords: Labour supply, school entry, regression discontinuity, lone parents, welfare receipt
    JEL: I21 J22
    Date: 2010–09
  7. By: Baskaran, Thushyanthan; Hessami, Zohal
    Abstract: This paper studies the relationship between globalization and the composition of public education expenditures. The theoretical model is embedded in a median voter setting and is based on the assumption that globalization leads to lower tax revenues as well as an increase in the relative wage of high-skilled workers. Overall, the theoretical discussion suggests that globalization induces a shift from primary to tertiary education expenditures, which is backed up by empirical evidence from dynamic panel estimations for 121 countries over the 1992 - 2006 period. A possible implication of the shift in educational priorities towards higher education is an increase in income inequality.
    Keywords: Globalization; public education expenditures; educational policy
    JEL: H42 F15 H52
    Date: 2010–09–15
  8. By: André, Pierre
    Abstract: This chapter investigates the connection between grade repetition and school dropout. Household data is matched against a panel of academic test scores and the school career of each child inferred from the combined dataset. This chapter uses two original identification strategies to identify the effect of grade repetition on school dropout. The first instrumental strategy uses the differences among teacher attitude to repetition as an instrument for grade repetition. The second strategy uses the discontinuity in the probability of grade repetition between pupils whose test score is just lower and just higher than the target achievement. Both results show a negative effect of the grade repetition decision on the probability of being enrolled at school the next year.
    Keywords: Grade repetition; School demand; School dropouts; Senegal
    JEL: D12 I28 O12
    Date: 2009–12
  9. By: Husain, Zakir
    Abstract: Is gender disparity greater in North India? This paper seeks to answer this question by examining gender differences in probability of completing school education across regions in India. A Gender Disparity Index is calculated using National Sample Survey Organization unit level data from the 61st Round and regional variations in this index analyzed to examine the hypothesis that gender disparity is greater in the North, comparative to the rest of India. This is followed by an econometric exercise using a logit model to confirm the results of the descriptive analysis after controlling for socio-economic correlates of completing school education. Finally, the Fairlie decomposition method is used to estimate the contribution of explanatory variables in explaining differences in probabilities of completing schooling across regions. The results reveal that gender disparities are greater in North India, for total and rural population, and in Eastern India, for urban population. However, the ‘residual effect’ after accounting for effect of explanatory variables - often referred to as ‘discrimination effect’, as opposed to disparity – is higher in Eastern India, irrespective of the place of residence.
    Keywords: discrimination; disparity; gender; Oaxaca decomposition; school education; India
    JEL: I20 C35
    Date: 2010–09–26
  10. By: Tahar Abdessalem (Ecole Polytechnique, Tunisia)
    Abstract: This paper focuses on Tunisia, which like other developing countries, has allocated increasing levels of resources to education, particularly higher education, mainly through public funding over the past few decades. In 2005-2008, public expenditure on education amounted to around 7.4 percent of GDP, with 2 percent allocated to higher education. However, in the last few years, the budgetary constraints have increased, and are likely to remain so in the near future. These budgetary constraints exist within a context of rapidly increasing student enrollment, and the need to improve the quality of education to insure better employability of graduates. In light of this situation, public policy is obliged to define orientations and programs, improving quality and efficiency while reducing costs and resource wastage, to enhance access and equity. This paper is organized as follows: it begins with an assessment of public expenditure on higher education in Tunisia, with respect to its adequacy, efficiency and equity. Next, in section 2, we explore the challenges posed to financing by demographic evolution, the quality of education and private provision. Section 3 examines some financing reinforcement strategies, and analyzes feasible measures to raise private funding contributions. Section 4 provides some concluding remarks.
    Date: 2010–10
  11. By: Mayssun El-Attar (Institute for Fiscal Studies and McGill University)
    Abstract: <p>The goal of this paper is to measure Palestinians' attitudes towards a peace process and their determinants. One novelty is to define these attitudes as multidimensional and to measure them carefully using a flexible item response model. Results show that education, on which previous evidence appears contradictory, has a positive effect on attitudes towards concessions but a negative effect on attitudes towards reconciliation. This could occur if more educated people, who currently have very low returns to education, have more to gain from peace but are less willing to reconcile because of resentment acquired due to their experience.</p>
    Date: 2010–09

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