nep-edu New Economics Papers
on Education
Issue of 2011‒02‒05
fourteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Labour Market Returns to Higher Education in Vietnam By Doan, Tinh
  2. Higher Education in India: Strategies and Schemes during Eleventh Plan Period (2007-2012) for Universities and Colleges By University Grants Commission UGC
  3. Dynamic Aspects of Teenage Friendships and Educational Attainment By Patacchini, Eleonora; Rainone, Edoardo; Zenou, Yves
  4. Information Technology and Student Achievement: Evidence from a Randomized Experiment in Ecuador By Paul Carrillo; Mercedes Onofa; Juan Ponce
  5. Why do educated mothers matter? A model of parental help By Luciano Canova; Alessandro Vaglio
  6. Industry funding of university research and scientific productivity By Hottenrott, Hanna; Thorwarth, Susanne
  7. Education and Household Welfare in Sri Lanka from 1985 to 2006 By Rozana Himaz; Harsha Aturupane
  8. The Bottom Line: Accounting for Revenues and Expenditures in Intercollegiate Athletics By Victor A. Matheson; Debra J. O’Connor; Joseph H. Herberger
  9. Redistributive Taxation, Incentives, and the Intertemporal Evolution of Human Capital By Christian Ferreda; Matías Tapia
  10. Education, Migration and Source Community Incomes in Rural China By Karpestam, Peter
  11. The Gender Reservation Wage Gap: Evidence form British Panel Data By Brown, Sarah; Roberts, Jennifer; Taylor, Karl
  12. Teacher mobility responses to wage changes: evidence from quasi-natural experiment By Torberg Falch
  13. The role of mid-range universities in knowledge transfer: the case of non-metropolitan regions in Central and Eastern Europe (examples from Hungary and the Czech Republic) By Gál, Zoltán; Ptáček, Pavel
  14. Fostering growth in CEE countries: a country-tailored approach to growth policy By Philippe Aghion; Heike Harmgart; Natalia Weisshaar

  1. By: Doan, Tinh
    Abstract: This paper employs the Ordinary Least Squares, Instrumental Variables and Treatment Effect models to a new dataset from the Vietnam Household Living Standards Survey (VHLSS) to estimate return to the four-year university education in 2008. Our estimates reveal that the return to university education is about 17% (annualized) and robust to the various estimators. The return to higher education has significantly increased since the economic reform in late 1980s.
    Keywords: economic transition; returns to higher education; IV model; Vietnam
    JEL: J31 O15 C31
    Date: 2011–01–26
  2. By: University Grants Commission UGC
    Abstract: The UGC has contributed in a number of ways in developing policies and to devise the schemes and to transform them into an action plan for implementation. The UGC also took several new initiatives for reforming higher education, many of the which were of a fundamental nature.
    Keywords: higher education, India, education, University Grants Commission, UGC, colleges, universities
    Date: 2011
  3. By: Patacchini, Eleonora (La Sapienza University of Rome, EIEF, IZA and CEPR.); Rainone, Edoardo (La Sapienza University of Rome); Zenou, Yves (Stockholm University, Research Institute of Industrial Economics (IFN), GAINS, IZA and CEPR. Email:)
    Abstract: We study peer effects in education. We first develop a network model that predicts a relationship between own education and peers’ education as measured by direct links in the social network. We then test this relationship using the four waves of the AddHealth data, looking at the impact of school friends nominated in the first wave in 1994-1995 on own educational outcome reported in the fourth wave in 2007-2008. We find that there are strong and persistent peer effects in education since a standard deviation increase in peers’ education attainment translates into roughly a 10 percent increase of a standard deviation in the individual’s education attainment (roughly 3.5 more months of education). We also find that peer effects are in fact significant only for adolescents who were friends in grades 10-12 but not for those who were friends in grades 7-9. This might indicate that social norms are important in educational choice since the individual’s choice of college seems to be influenced by that of friends in the two last years of high school.
    Keywords: Social networks; education; peer effects; identification strategy
    JEL: C21 I21 Z13
    Date: 2011–01–25
  4. By: Paul Carrillo; Mercedes Onofa; Juan Ponce
    Abstract: This paper studies the effects of information and communication technologies (ICT) in the school environment on educational achievement. To quantify these effects, the impact is evaluated of a project run by the municipality of Guayaquil, Ecuador, which provides computer-aided instruction in mathematics and language to students in primary schools. Using an experimental design, it is found that the program had a positive impact on mathematics test scores (about 0.30 of a standard deviation) and a negative but statistically insignificant effect on language test scores. The impact is heterogeneous and is much larger for those students at the top of the achievement distribution.
    Keywords: Information and communications technology, Education, Experimental design, Ecuador
    JEL: C93 I21
    Date: 2011–01
  5. By: Luciano Canova (Enrico Mattei School); Alessandro Vaglio (University of Bergamo)
    Abstract: This paper investigates the role performed by mothers in affecting their childrens’ performance at school. The article develops firstly a theoretical model in which household (parent - child pair) is treated as an individual, whose utility depends both on the performance at school of the student and on consumption. The model focuses on the different possibilities through which help of mothers may affect pupil’s performance both in terms of time devoted to supervision and spillover effects. Empirical evidence then, using PISA 2006 and focusing on Italian case, shows that education of mothers is an issue when interacted with her occupational status. Highly educated mothers have a positive impact on students’ score only when they are highly qualifed in the job market.
    Keywords: Education, PISA, quantile regressions, parental help
    JEL: J12 J24 I21
    Date: 2011
  6. By: Hottenrott, Hanna; Thorwarth, Susanne
    Abstract: University research provides valuable inputs to industrial innovation. It is therefore not surprising that private sector firms increasingly seek direct access through funding public R&D. This development, however, spurred concerns about possible negative long-run effects on scientific performance. While previous research has mainly focused on a potential crowding-out of scientific publications through commercialization activities such as patenting or the formation of spin-off companies, we study the effects of direct funding from industry on professors' publication and patenting efforts. Our analysis of a sample of 678 professors at 46 higher education institutions in Germany shows that a higher share of industry funding of a professor's research budget results in a lower publication outcome both in terms of quantity and quality in subsequent years. For patents, we find that industry funding increases their quality measured by patent citations. --
    Keywords: Scientist Productivity,University Research,Patents,Research Funding,Technology Transfer
    JEL: O31 O32 O33
    Date: 2010
  7. By: Rozana Himaz; Harsha Aturupane
    Abstract: This paper looks at the impact of education on household economic welfare in Sri Lanka over twenty years from 1985 to 2006 using five cross section household survey datasets. Applying quantile regression techniques the analysis finds that the incremental value to household welfare shows a distinct jump for an extra year of education at levels where important national examinations are completed. Moreover, higher quantiles systematically enjoy greater incremental welfare to education levels between Grade 8 to completed Advanced level examinations. Both these effects happen partly via the labour market, as labour market returns to employment display similar trends. The first finding suggests that credentials are important in the labour market. The second finding suggests that individuals in the upper quantiles probably have better quality education as well as social and analytical skills that complement formal education, enabling them to earn higher returns for their education.
    Keywords: Sri Lanka, education, welfare, quantile regression, returns
    JEL: I00 I20 I21 O53
    Date: 2011
  8. By: Victor A. Matheson (Department of Economics, College of the Holy Cross); Debra J. O’Connor (Department of Economics, College of the Holy Cross); Joseph H. Herberger (Department of Economics, College of the Holy Cross)
    Abstract: This paper examines the profitability of Division I athletic programs at colleges and universities in the United States under a variety of accounting definitions of profit. The data identify several broad themes. First, a majority of athletic departments rely heavily on direct and indirect subsidization of their programs by the student body, the institution itself, and state governments in order to balance their books. Without such funding, less than a third of BCS athletic departments and no non-BCS departments are in the black. Second, athletic programs rely heavily on contributions to balance their books. Donations to athletic departments may serve as a substitute for donations to the rest of the university, lowering giving to other programs. Third, football and men’s basketball programs are generally highly profitable at BCS schools, but below this top tier, fewer than 10% of football programs and 15% of men’s basketball programs show a profit by any reasonable accounting measures.
    Keywords: Athletics, higher education, sports
    JEL: L83 O18 R53 J23
    Date: 2011–01
  9. By: Christian Ferreda; Matías Tapia
    Abstract: This paper contributes to the literature on redistributive taxation and human capital dynamics by explicitly analyzing the role of incentives in the education market where human capital is produced. We introduce an explicit education market with heterogeneous private schools in a dynamic stochastic general equilibrium model with overlapping generations and human capital accumulation. We use the model to simulate the effects of taxation on growth, intergenerational mobility, inequality, and welfare. Equalization in education expenditures reduces incentives for differentiation in the education market, with the distribution of education investments shifting towards the least productive schools. This has significant consequences on equilibrium outcomes, and highlights the importance of incorporating the role of intermediation when analyzing redistribution policies.
    Keywords: Human capital, school market, redistributive taxation, inequality, efficiency.
    JEL: E24 H21 I21
    Date: 2010
  10. By: Karpestam, Peter (Department of Economics, Lund University)
    Abstract: Residents in rural China doubt the benefits from education, yet there is empirical evidence supporting positive effects in urban and rural areas. This paper investigates whether education affects a variety of income attainment indicators for households in rural China, using a household survey from the provinces of Hebei and Liaoning. The analysis estimates education effects for household residents, but also for temporary migrants (rural-urban migrants) and children who have moved permanently (rural-rural migrants). This can help to answer a set of three related questions: 1) Does household welfare in rural China depend on education? 2) Is the effect of education contingent on the decision to migrate? and 3) Does education have dissimilar effect for rural-urban and rural-rural migrants? The results support that education has positive income effects and that migration yields no additional payoffs. However, there is no evidence that households benefit from higher education if migration is only temporary. Altogether, this signals positive payoffs of educational expenses to rural households but households which consider sending a migrant into the urban labor force are better off if the more educated stay at home.
    Keywords: East Asia; China; Education; Migration; Remittances; Non-Farm Incomes;
    JEL: D13 F24 I20 J60 R23
    Date: 2011–01–18
  11. By: Brown, Sarah (University of Sheffield); Roberts, Jennifer (University of Sheffield); Taylor, Karl (University of Sheffield)
    Abstract: Our findings suggest the existence of a gender reservation wage gap. The presence of children, particularly pre-school age children, plays an important role in determining the proportion of this gap that can be explained by individual characteristics. For individuals without children, the unexplained component of the differential is 99% compared to only 22% for those with pre-school age children, which might indicate that perceived discrimination in the labour market influences the reservation wage setting of females.
    Keywords: reservation wages, wage decomposition
    JEL: J13 J24 J64
    Date: 2011–01
  12. By: Torberg Falch (Department of Economics, Norwegian University of Science and Technology)
    Abstract: This paper utilizes a Norwegian experiment with exogenous wage changes to study teacher’s turnover decisions. Within a completely centralized wage setting system, teachers in schools with a high degree of teacher vacancies in the past got a wage premium of about 10 percent during the period 1993-94 to 2002-03. The empirical strategy exploits that several schools switched status during the empirical period. In a fixed effects framework, the wage premium reduces the probability to quit by 6-7 percentage points and increases recruitment by 4-7 percentage points.
    Date: 2010–04–26
  13. By: Gál, Zoltán; Ptáček, Pavel
    Abstract: The paper focuses on the specific role of mid-range universities in knowledge transfer and explores the knowledge flows from these mid-range universities facing a number of extra constraints in transitional Central Eastern European (CEE) regions. Mid-range universities, very often located outside of the metropolitan regions, represent the keystones of regional innovation systems for the less developed regions where the “density of contacts” is much lower and possible spillovers emerge more sparsely. The first part of the paper focuses on the types of possible linkages between mid-range universities and industry, and limitations of these relations bringing examples from Western Europe where the position of universities in the collaboration with business sector and their role in the innovation system is quite different form their CEE counterparts. It is mainly due to the different development path of innovation systems and development trajectories in post-communist countries described in the paper. Based on case studies bringing examples mainly from the non-metropolitan regions of Hungary and the Czech Republic, where the number of constraints, such as the lack of critical mass in their techno-economic systems, the traditionally weaker role of university based experimental researches, the mismatch between the economic and knowledge sectors, the weak regional innovation systems and less intense university–industry links are the major impediments of knowledge transfer. The paper argues that ambitious university-based developmental models have to be revised in CEE regions and the future role of universities has to be reconsidered as potential engines of local economic development from a more realistic perspective. The paper also argues, that the regional techno-economic system needs to achieve a certain degree of maturity in order to be able to determine the foci of a research and innovation-oriented regional development within the reindustrializing CEE regions and makes policy recommendation for the mid-range universities to take on new role, which means a stronger regional engagement in also medium-tech innovations and in social and organizational innovation.
    Keywords: mid-range universities; knowledge transfer; non-metropolitan regions; Central & Eastern Europe; regional engagement;
    JEL: P36 I23 D83 O33 D8 O31 R11
    Date: 2010–09–12
  14. By: Philippe Aghion (Harvard University); Heike Harmgart (EBRD); Natalia Weisshaar (Royal Holloway College)
    Abstract: This paper analyses the long term growth experiences of the eastern European accession countries and the effect of various tailored growth policies. We find that there are two overarching growth-enhancing policies that can substantially increase long-term growth: competition and the quality of education. We find empirical evidence that if accession countries from the transition region want to achieve – and sustain – higher growth rates they will need to ensure competition by continuing to remove entry and trade barriers and by strengthening competition agencies. We also find evidence on the positive long-run impact of quality of education on growth, and hence the high return on public investment in education, particularly at the primary and secondary level. The private sector’s role in overcoming skill mismatches will benefit from deepening financial intermediation and reducing constraints in access to finance.
    JEL: O1 P2 P5
    Date: 2010–10

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