1. IV.B Education and Development
Carleton University
ECON 3508
(Text, Chapter 8, pp ]
February 14, 2013
Arch Ritter

2. The Central Roles of Education and Health
Health and education are important objectives of development, as reflected in Amartya Sen’s capability approach, and in the core values of economic development
Health and education are also important components of growth and development

3. Education and Health as Joint Investments for Development
These are investments in the same individual; Mutually supportive
Greater health capital may improve the returns to investments in education
Health is a factor in school attendance
Healthier students learn more effectively
A longer life raises the rate of return to education
Healthier people have lower depreciation of education capital
Greater education capital may improve the returns to investments in health
Public health programs need knowledge learned in school
Basic hygiene and sanitation may be taught in school
Education is needed in training of health personnel

4. Improving Health and Education: Why Increasing Incomes Is Not Sufficient
Increases in income often do not lead to substantial increases in investment in children’s education and health
But better educated mothers tend to have healthier children at any income level
Significant market failures in education and health require policy action
Signifying major Government roles everywhere

5. What is Education? Where does one get it?

6. What is Education?
“All forms of learning and improving human knowledge and capabilities”
Education =/= “Schooling”
Types of education:
Informal:
At home, from our parents and family, friends…….
On our own, learning by doing
At play On the job; at work
In conversation In our communities
Formal
At “day-care”, school, college, university, classes…
Employee training
Formal apprenticeships

7. The Functions of Education

8. The Functions of Education
General socialization;
Ethical
Community & citizenship responsibility
Fundamental personal empowerment
Improvement in personal and family quality of life
“Joy of learning”…an “end” in itself
Understanding the world and ourselves
“Human capital”: of particular relevance here

9. Human Capital Examples:
The economist’s term for the knowledge and skills that workers acquire through education, training, and experience.
Produced through investment in people
Examples:
formal education, health,
informal education, sanitation,
family environment water availability, nutrition, 13 13 13

10. Education and Development
In general: Education promotes development and Development promotes education How does education promote development?

11. Education and Development
How does education promote development?
Basic literacy and numeracy are indispensible for coping and survival in the modern world
Generates skills of all sorts needed in the economy
Improved parental, esp. mothers’ education builds “human capital” of children; e.g. via nutrition, health, child-care spill-overs or “externalities”
May improves quality and scope of entrepreneurship on farms and in other economic activities

12. But education on its own will not “produce” development;
Public policy mess-ups, institutional stupidities and political dysfunction all can overwhelm good education and produce stagnation and contraction

13. Development and Education
Does development promote education? How?

14. Education and Development
How does development promote education?
Development (sustainable growth plus equity) generates the resources that can improve and support education
Growth leads to increased tax revenues for public education expenditures;
Higher family incomes permit increased family financing of education

15. 8.5 Educational Systems and Development
Educational supply and demand: the relationship between employment opportunities and educational demands
“Education Certification”:
continuous up-grading of job entry requirements for jobs previously filled with less-educated workers.

16. Analyzing Education: Costs and Benefits, Private and Social
Private Costs and Benefits:
Social Costs and Benefits”

17. Analyzing Education: Costs and Benefits, Private and Social
Private Benefits:
Personal empowerment:
knowledge, skills, “learning to learn”
Lifetime earnings
Greater potential for participation
Consumption benefits?
Private Costs
Hard work (also maybe a private benefit).
Earnings foregone (opportunity cost)
Direct costs (fees, supplies, board & lodging)

18. Analyzing Education: Costs and Benefits, Private and Social
Social Benefits
Improved productivity benefits all
Improved nutrition, health, child-care spill-overs or “externalities”, especially from women’s education
Improved potential for tech change and productive entrepreneurship
More effective political participation?
Social Costs
Resources dedicated to education
Opportunity costs to society

19. Investing in Education and Health: The Human Capital Approach
Initial investments in health or education lead to a stream of higher future income
The present discounted value of this stream of future income is compared to the costs of the investment
Private returns to education are high, and may be higher than social returns, especially at higher educational levels

20. Figure 8.1 Age-Earnings Profiles by Level of Education: Venezuela

21. Figure 8.2 Financial Trade-Offs in the Decision to Continue in School

22. Psacharopoulos and Patrinos, 2005

23. Figure 8.6 Private versus Social Benefits and Costs of Education: An Illustration

24. 8.5 Educational Systems and Development
Distribution of Education
Lorenz curves for the distribution of education
Education, Inequality, and Poverty
Note that formal education systems can worsen income distribution

25. Lorenz Curves and Gini Coefficients for Education in India and South Korea, 1990

26. Gini Coefficients for Education in 85 Countries

27. Figure 8.4 Youth Literacy Rate, 2008

29. Trends in African Education: Gross Enrollment Ratios
1970
2000
2007
Primary
51.0
81.7
94.0
Secondary
6.3
25.7
30.0
Tertiary
0.8
3.6
5.5
Source: World Bank, World Development Indicators, 2009

30. MDG Goals and Achievement: Education

31. Participation in Education for Some African Countries, 2007
Country
Primary
Secondary
Tertiary
Adult Literacy
M F
S. Africa
103 96 15 87
Ghana 49 6 58
Kenya
106 50 Na
Zimbabwe
101 40 88
Botswana
107 76 5
Nigeria 97 32 10 64
Malawi
126 28 65
Ethiopia 91 30 3
Liberia
90.6
31.6
17.4
58.1
All Africa 94
Source: UNDP. Human Development Report, 2007/2008

33. The Gender Gap: Discrimination in Education
Young females receive less education than young males in nearly every low and lower-middle income developing country
Closing the educational gender gap is important because:
The social rate of return on women’s education is higher than that of men in developing countries
Education for women increases productivity, lowers fertility
Educated mothers have a multiplier impact on future generations
Education can break the vicious cycle of poverty and inadequate schooling for women
Good news: MDG goals on parity being approached, progress in every developing region

34. School Attainment by Gender: Ratio of Female to Male, Per Cent
Region
1960
2000
South Asia
Middle East and North Africa
Sub Saharan Africa
Latin America & Carib.
East Asia
25%
51%
59%
83%
50%
52%
60%
71%
96%
84%

35. MDG Goals and Achievement: Gender Disparities
Gender disparity is measured by the ratio of girls to boys enrolled in primary and secondary schools. Most regions are on track to achieve this target by 2015.

36. Educational Issues Achieving 100% primary school enrollments
Expanding secondary enrolments
Expanding tertiary education
Equal access to education for girls and women
Child labour and education
Relevance of curricula; especially in rural areas; balancing supply of graduates with demand for labour
Financial and equity issues
“Balance” among primary, secondary and tertiary education
Improving Quality
Education, Internal Migration, and the Brain Drain

37. Educational Issues
Achieving 100% primary school enrollments; almost complete
2. Expanding secondary education
Major achievements so far in these areas:
But note
Africa:
gross enrollment ratios
Unevenness of advances among countries
1970
2000
2007
Primary
51.0
81.7
94.0
Secondary
6.3
25.7
30.0
Tertiary
0.8
3.6
5.5

38. Participation in Education for Some African Countries, 2007
Country
Primary
Secondary
Tertiary
Adult Literacy
M F
South Africa
103 96 15 87
Ghana 49 6 58
Kenya
106 50 Na
Zimbabwe
101 40 88
Botswana
107 76 5
Nigeria 97 32 10 64
Malawi
126 28 65
Ethiopia 91 30 3
D. R. Congo 85 33 4
All Africa 94
Source: UNDP. Human Development Report, 2007/2008

39. Educational Issues., continued
3. Equal access to education for girls and women, especially in East Asian and some African countries
Why the imbalances?
Cultural traditions in some countries;
“At home” tradition for women; Early withdrawal for work at home
Income potentials for males vis-a-vis females outside the home?
Lack of resources
Policy approach of governments
Early pregnancies; early marriage
Most countries are catching up regarding women’s education,
quickly enough?
A Millennial Development Goal

40. Educational Issues, continued
4. Expanding Tertiary Education
High cost
Quality issue
Equity issue
Brain drain issue
Curriculum relevance?

41. 5. Child Labor Child labor is a widespread phenomenon
Children need to learn to work; but when does this become exploitative and ant-developmental?
Government intervention may be necessary
Sometimes this shift can be self-enforcing, so active intervention is only needed at first

42. Other approaches to child labor policy
Get more children into school e.g. new village schools; and enrollment incentives for parents
Consider child labor an expression of poverty, so emphasize ending poverty generally (a traditional World Bank approach, now modified)
If child labor is inevitable in the short run, regulate it to prevent abuse and provide support services for working children (UNICEF approach)
Ban child labor; or if impossible, ban child labor in its most abusive forms (ILO strategy;)
Activist approach: trade sanctions.
Concerns: could backfire when children shift to informal sector; and if modern sector growth slows

43. Educational Issues, continued
6. Relevance of curricula;
especially in rural areas
Are “school-leavers” also “village-leavers”? (Rural brain drain?)
“Education for Development”

44. Educational Issues, continued
7. Financial and equity issues
How should costs be shared between society and individual for higher education?
[Hint: Observe social and private costs and benefits]

45. Public Expenditure per Student per Year as a Percent of GDP pc
Country
Primary
Secondary
Tertiary
Botswana
16.1%
41.2%
440.6%
Burundi
20.0
77.5
363.1
Ghana
18.4
29.1
213.4
Mauritius
10.3
17.4
40.4
Niger
28.7
46.1
371.4
Rwanda
10.2
365.1
372.8
South Africa
15.6
16.7
44.3
Canada na
USA
22.2
24.6
26.
Source:: World Bank, World Development Report, 2009, Table 2.11

46. Re. 7 and 8: The Issue of Balance and Fairness among Levels of Education

47. Educational Issues, continued
8. “Balance” among primary, secondary and tertiary education
What should be the relevant emphases placed on these?

48. Educational Issues, cont’d:
9. Improving Quality while the systems expand rapidly A Major task. How can this be done??

49. Increase resource allocations (from Taxation via economic growth)
9. Improving Quality while the systems expand rapidly. How can this be done??
Increase resource allocations (from Taxation via economic growth)
Easily said, hard to do;
Relevamce of economic growth to undergird tax increases and education
Better teacher training;
better salaries to incentivate good full-time work
Improve ability of children to learn
(nutrition at school sometimes)
Concentrate attention on primary schools ?
Reconsider financing for higher education ?

50. 10. Education, Migration and various “Brain Drains”