nep-edu New Economics Papers
on Education
Issue of 2013‒05‒11
sixteen papers chosen by
Joao Carlos Correia Leitao
University of Beira Interior and Technical University of Lisbon

  1. Making aid work for education in developing countries: An analysis of aid effectiveness for primary education coverage and quality By Birchler, Kassandra; Michaelowa, Katharina
  2. International Education and Economic Growth By Bergerhoff, Jan; Borghans, Lex; Seegers, Philipp K.; van Veen, Tom
  3. Sparking Innovation in STEM Education with Technology and Collaboration: A Case Study of the HP Catalyst Initiative By Kiira Kärkkäinen; Stéphan Vincent-Lancrin
  4. Pure Ethnic Gaps in Educational Attainment and School to Work Transitions. When Do They Arise? By S. BAERT; B. COCKX
  5. Improving the Economic Situation of Young People in France By Hervé Boulhol
  6. Managers versus students: new approach in improving capital structure education By Miglo, Anton
  7. Is Public Education Viable? A brief critical review of neoliberalism in education with a special focus on the Portuguese situation By Margarida Chagas Lopes
  8. Adolescent Risk Perception, Substance Use, and Educational Attainment By Ji Yan; Sally Brocksen
  9. Earnings Differentials and Returns to Education in China, 1995-2008 By Cui, Yuling; Nahm, Daehoon; Tani, Massimiliano
  10. “Double Penalty in Returns to Education: Informality and Educational Mismatch in the Colombian Labour market” By Paula Herrera; Enrique López-Bazo; Elisabet Motellón
  11. Female Labour Supply, Human Capital and Welfare Reform By Richard Blundell; Monica Costa Dias; Costas Meghir; Jonathan M. Shaw
  12. Firm Entry Deregulation, Competition and Returns to Education and Skill By Ana P. Fernandes; Priscila Ferreira; L. Alan Winters
  13. Does Education Expenditure Promote Economic Growth in Saudi Arabia? An Econometric Analysis By Ageli, Dr Mohammed Moosa
  14. International organizations and the future of education assistance By Heyneman, Stephen P.; Lee, Bommi
  15. Generating commercial ideas in Finnish universities. The role of interdisciplinarity and networking By Nikulainen, Tuomo
  16. Commercialization of academic research. A comparison between researchers in the U.S. and Finland By Nikulainen, Tuomo; Tahvanainen, Antti-Jussi

  1. By: Birchler, Kassandra; Michaelowa, Katharina
    Abstract: This paper examines the effect of education aid on primary enrolment and education quality. Using the most recent data on aid disbursements and econometric specifications inspired by the general aid effectiveness literature, we find some evidence that don
    Keywords: aid effectiveness, educational enrolment, education quality
    Date: 2013
  2. By: Bergerhoff, Jan (University of Bonn); Borghans, Lex (Maastricht University); Seegers, Philipp K. (Maastricht University); van Veen, Tom (Maastricht University)
    Abstract: In recent years international student mobility increased. While net hosting countries are in a better position to win highly educated students for their labour force, they face the additional cost of providing the education. In much of continental Europe these costs are not levied on students, but are borne by the national tax payers, making them an active topic of debate. Borrowing some fundamental equations from the Lucas growth model, this paper addresses the question whether countries benefit from educating international students. We derive conditions under which international education has a positive effect on economic growth, overall and in each specific country. Based on empirically motivated parameter values to calibrate our two-country model we find that international student mobility increases steady state growth for both countries on average by 0.013 percentage points. A small country that is favoured by the inflows of a larger country could experience an extra growth of 0.049 percentage points. The benefits from international education increase when a country tunes its education and migration policy.
    Keywords: international education, economic growth, economics of education
    JEL: I25
    Date: 2013–04
  3. By: Kiira Kärkkäinen; Stéphan Vincent-Lancrin
    Abstract: This report highlights innovative technology-supported pedagogic models in science, technology, engineering and mathematics (STEM) education, explores what to expect from collaboration in a designed network, and, thereafter, sketches lessons for promoting educational innovation through collaboration.<P> How can technology-supported learning help to move beyond content delivery and truly enhance STEM education so that students develop a broad mix of skills? How can collaboration be encouraged and used to help develop, spread, accelerate and sustain innovation in education? The HP Catalyst Initiative – an education grant programme by the Hewlett Packard (HP) Sustainability and Social Innovation team – is used as a case study to answer these questions.<BR>Le rapport met en lumière des modèles pédagogiques utilisant la technologie pour l'enseignement des science, de la technologie, de l'ingénierie et des mathématiques (STEM), explore ce que l'on peut attendre de la collaboration dans un réseau créé artificiellement, et, ensuite, en tire des leçons pour promouvoir l'innovation éducative à travers la collaboration...
    Date: 2013–04–17
  4. By: S. BAERT; B. COCKX
    Abstract: This article decomposes the observed gaps in educational attainment and school-to-work transitions between grandchildren of natives and immigrants in Belgium into (i) differences in observed family endowments and (ii) a residual “pure ethnic gap”. It innovates by explicitly taking delays in educational attainment into account, by identifying the moments at which the pure ethnic gaps arise, by disentangling the decision to continue schooling at the end of a school year from the achievement within a particular grade, and by integrating the language spoken at home among observed family endowments. The pure ethnic gap in educational attainment is found to be small if delays are neglected, but substantial if not and for school-to-work transitions. It is shown that morethan 20% of the pure ethnic gap in graduating from secondary school without delay originates in tenth grade. Language usage explains only part of the gap in school-to-work transitions for low educated.
    Keywords: dynamic discrete choice, dynamic selection bias, educational attainment, school-to-work transitions, ethnic minorities, discrimination.
    JEL: C35 J15 J70
    Date: 2013–02
  5. By: Hervé Boulhol
    Abstract: The economic situation of young people is unsatisfactory. Educational inequalities have been widening for over a decade, due to a sharp decline in the results of the most highly disadvantaged students. The unemployment rate for the 20-24 age bracket has not dropped below 16% for nearly 30 years. French youth are highly pessimistic about the future and express great distrust of institutions. The social safety net sits uneasily between autonomy and family solidarity and is unfair because young people who are unemployed and have no solid financial backing from their families find themselves in precarious situations. Positive discrimination in education policies should be given a real priority and education spending rationalised to draw more resources to primary schooling. The autonomy of universities should be increased, as should the financial independence of young people. The workings of the labour market, some features of which penalise new entrants, need to be reformed and youth employment services enhanced. This Working Paper relates to the 2013 OECD Economic Review of France (
    Keywords: unemployment, education, France, employment, tertiary education, primary education, labour market, youth, school failure, school-to-work transition
    JEL: H52 I21 I24 I25 J20 J30
    Date: 2013–04–05
  6. By: Miglo, Anton
    Abstract: According to Graham and Harvey (2001), an immense gap exists between capital structure theories and practice. By analyzing students’ perception of capital structure theories and the differences between their opinion and that of the current CEO’s and managers this paper argues that this can be partially explained by current educational practices. Educators mostly focus on one or maybe two most popular theories and students have much smaller knowledge about other theories. Secondly educational practices favor trade-off theory to asymmetric information based theories. The paper provides some suggestions regarding capital structure education and future research.
    Keywords: capital structure education, trade-off theory, pecking-order theory, shareholders-bondholders conflict, life cycle theory, flexibility theory, debt and discipline
    JEL: G32 I21 I22
    Date: 2012
  7. By: Margarida Chagas Lopes
    Abstract: As well as in other social domains, neoliberalism has been invading education. This trend is leading to a general commodification and to the progressive substitution of some basic values, as the equality of opportunities, by efficiency and competitiveness. At the same time, education policies become more and more shaped by strict economic principles, reflecting the training acquired by decision makers in economics and economics of education courses. That is why we reject, as a critical social scientist, the view that the viability of public education could be discussed uniquely on the grounds of mainstream public economics criteria. On the contrary, that discussion must allow critical pedagogies and alternative approaches to express themselves. Also mainstream clichés must be systematically criticized, as we exemplify in the domain of economics of education. Actually, those are the indispensable complimentary pathways throughout which we can return to education its full meaning as a social service; and also to economics of education its legitimacy as a social science.
    Keywords: Public Education, Neoliberalism, Critical Pedagogy, Portugal
    JEL: H44 I21 I24 I19
    Date: 2013–02
  8. By: Ji Yan; Sally Brocksen
    Abstract: This paper studies whether adolescents who are more aware of the risks on substance use in the early teenage years are later less likely to turn into binge drinkers or smokers. It also examines if reduction in substance use, due to high risk perception among adolescents, consequently improves their educational achievement. This research is important for two reasons. First, enhancing risk perception of substance use is an important strategy to prevent the youth from binge drinking and smoking. Second, adolescent substance use and educational achievement are key predictors of adulthood outcomes. We apply a bivariate probit model to a large representative dataset which codes youth risk perception, substance use, and educational attainment. The analysis shows high risk perception lowers the likelihood of substance use among the high school seniors. The resulting low alcohol use increases the chance of attending college and decreases the probability of dropping out of high school. The reduction in cigarette use caused by high risk perception has a similar effect on such two educational outcomes. It also increases high school graduation by 22 percent. Overall, this study suggests that enhancing recognition on the hazards of substance use is an effective policy intervention to reduce adolescent binge drinking and smoking, as well as improve educational attainment. Key Words: adolescent risk perception; binge drinking; cigarette smoking; educational attainment
    JEL: I12 I18 J24
    Date: 2013
  9. By: Cui, Yuling (Macquarie University, Sydney); Nahm, Daehoon (Macquarie University, Sydney); Tani, Massimiliano (Macquarie University, Sydney)
    Abstract: This paper estimates the returns to education of rural-urban migrants during the period of transition of China's economy between 1995 and 2008. Using data from CHIP and RUMiC, we find that rural migrants' earning differentials with urban residents are substantial and mainly depend on the type of occupation, industry, and employers' ownership, rather than the level of education completed. Returns to formal schooling for migrants remained stable at approximately 3% and 5% throughout the period, and differences across quantiles are generally statistically insignificant. Increasing gaps in the return to schooling by gender have instead emerged. These results raise questions about the incentives to invest in human capital for rural migrants and for the governments funding education in emigration regions.
    Keywords: returns to education, rural migrants, quantile regression, ownership enterprises, China, returns to schooling
    JEL: C31 J24 J61 O15
    Date: 2013–04
  10. By: Paula Herrera (Faculty of Economics, University of Barcelona); Enrique López-Bazo (Faculty of Economics, University of Barcelona); Elisabet Motellón (Faculty of Economics, University of Barcelona)
    Abstract: This paper examines the returns to education taking into consideration the existence of educational mismatches in the formal and informal employment of a developing country. Results show that the returns of surplus, required and deficit years of schooling are different in the two sectors. Moreover, they suggest that these returns vary along the wage distribution, and that the pattern of variation differs for formal and informal workers. In particular, informal workers face not only lower returns to their education, but suffer a second penalty associated with educational mismatches that puts them at a greater disadvantage compare to their formal counterparts.
    Keywords: Educational Mismatch; Formal/Informal Employment; Economic Development; Wage Gap. JEL classification: O17; J21; J24.
    Date: 2013–05
  11. By: Richard Blundell; Monica Costa Dias; Costas Meghir; Jonathan M. Shaw
    Abstract: We consider the impact of Tax credits and income support programs on female education choice, employment, hours and human capital accumulation over the life-cycle. We thus analyze both the short run incentive effects and the longer run implications of such programs. By allowing for risk aversion and savings we are also able to quantify the insurance value of alternative programs. We find important incentive effects on education choice, and labor supply, with single mothers having the most elastic labor supply. Returns to labour market experience are found to be substantial but only for full-time employment, and especially for women with more than basic formal education. For those with lower education the welfare programs are shown to have substantial insurance value. Based on the model marginal increases to tax credits are preferred to equally costly increases in income support and to tax cuts, except by those in the highest education group.
    JEL: H2 H3 I21 J22 J24 J31
    Date: 2013–05
  12. By: Ana P. Fernandes (University of Exeter); Priscila Ferreira (NIMA, Universidade do Minho); L. Alan Winters (University of Sussex, CEPR, CEP and IZA)
    Abstract: This paper studies the effect of firm entry deregulation on the returns to skill and education. We use matched employer-employee data for the universe of workers and firms in Portugal and exploit a comprehensive episode of entry deregulation, unique in the industrialized world, as a quasi-natural experiment to investigate how increased competition affects wages. We find that after the reform the returns to a university degree increased by around 5 percent and the returns to skills increased by around 3 percent. We include match (worker-firm) fixed effects and thus identify the effect from individuals who stay in the same firm after the reform. Results are therefore not driven by changes in employment composition, and are supportive of education and skill becoming more valuable after the reform.
    Keywords: Entry, Deregulation, Product Market Competition, Wage Structure, Returns to Education
    JEL: J3
    Date: 2013–04
  13. By: Ageli, Dr Mohammed Moosa
    Abstract: This paper investigates the Keynesian Relations and Education Expenditure in Saudi Arabia during the period (1970-2012) for real Oil GDP and Non Oil GDP. Keynesian Relations investigated that fundamental economic growth is validity to the education growth. In the previous tudies have been tested the three versions of Keynesian Relations to support the existence of long-run relationship between education expenditure and economic growth. We used a method as a time series econometrics techniques to examine how far Keynesian Relations validity can be applied in Saudi economy. The results obtained from the analyses find that the Keynesian proposition can explain the growth of education in Saudi Arabia, which holds for both the Oil and Non Oil income cases. The findings also note that the existence of strong causality for all of Keynesian Relations versions in the long run.
    Keywords: Keynesian Relations, Ordinary Least Square (OLS), Co integration, Granger Causality, Error Correction Model (ECM), Augmented Dickey Fuller (ADF), Education Expenditure, Economic Growth, Saudi Arabia
    JEL: C22 E62 H52 I21
    Date: 2013–04–06
  14. By: Heyneman, Stephen P.; Lee, Bommi
    Abstract: Education began to be included as a component of foreign assistance in the early 1960s as it is a principal ingredient of development. A number of multilateral and bilateral agencies were established around this time to implement various types of aid prog
    Keywords: education, foreign aid, effectiveness, multilateral, bilateral, ODA
    Date: 2013
  15. By: Nikulainen, Tuomo
    Abstract: Existing research argues that the keys to generating industry-relevant knowledge are interdisciplinary and networked research. The aim of this paper is to address statistically whether interdisciplinary and networked research are related to a higher potential to generate ideas with significant commercial value. Using a unique survey of academics in Finland, we identify several factors that relate to idea generation. In different types of research networks, we find a positive connection to an interdisciplinary work environment and networking. We also identify significant differences among fields of research.
    Keywords: universities, research, idea generation, commercial ideas, interdisciplinarity, networks, networking
    JEL: O30 O38 O33 O34
    Date: 2013–05–03
  16. By: Nikulainen, Tuomo; Tahvanainen, Antti-Jussi
    Abstract: This paper aims to identify factors that relate to scientists’ propensity to make commercially significant scientific discoveries (inventions) and to describe how these inventions are commercialized. Based on a large survey of academics active in different fields of science at U.S. universities, the paper benchmarks the top 20 universities against the rest, identifying the impact of different institutional settings. To highlight the institutional setting, the paper also compares these results to similar survey data from Finland, representing a small, highly educated European country. This comparison addresses the ‘European paradox’ in university technology commercialization, which is characterized by high investments in university research and disappointingly low levels of inventions and related commercialization activity. The results show that the likelihood of making commercially valuable scientific discoveries in the U.S. is driven by motivations related to the identification of commercial opportunities and working in interdisciplinary research environments. There are also significant differences between the various fields of science. In the top U.S. universities, the funding sources for scientists more likely to make inventions are more diversified and unique. The results for Finland are surprisingly similar, suggesting that the cause of the ‘European paradox’ seems to originate in the commercialization of inventions rather than their generation. When focusing on inventors who actively pursue commercial goals, both U.S. and Finnish inventors prefer licensing as the most popular way of taking scientific discoveries to the market. Consulting and entrepreneurship rank second and third, respectively. The countries differ with respect to both the inventors’ motivations to commercialize inventions and their reasons to refrain from it. In Finland, the motivations for not pursuing commercial opportunities are much more prominent than among U.S. scientists.
    Keywords: academic inventions, innovation, commercialization of research, academic entrepreneurship
    JEL: O30 O38 O33 O34
    Date: 2013–05–03

This nep-edu issue is ©2013 by Joao Carlos Correia Leitao. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.