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This paper studies the relationship between inequality of opportunity and development outcomes in a cross-country setting. Scholars have long debated the impact of inequality on growth, development, and the quality of institutions in a society. The empirical relationships are however confounded by the notion that "inequality" can be seen as a composite of inequality arising from differences in effort and ability, which would tend to encourage competition and productivity, and inequality attributable to unequal opportunities, particularly in terms of access to basic goods and services, which might translate to wasted human potential and lower levels of development. The analysis in this paper applies a measure of educational opportunities that incorporates inequality between "types" or circumstance groups. Theories from economic history are used to instrument for this type of inequality in a large cross-country dataset. The results seem to confirm the hypothesis that this measure of inequality of opportunity is a better fit for structural inequality than the Gini index of income. The results suggest that inequality of endowments at the outset of history led to unequal educational opportunities, which in turn affected development outcomes such as institutional quality, infant mortality, and economic growth. The findings are robust to several checks on the instrumental variable specification.

Economic Theory & Research --- Education --- Equity --- Growth --- Health, Nutrition and Population --- Inequality --- Information and Communication Technologies --- Information Security and Privacy --- Institutions --- Macroeconomics and Economic Growth --- Opportunity --- Population Policies --- Poverty Impact Evaluation --- Poverty Reduction

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This article studies the extent to which participation in productive associations in Nicaragua contributes to increase individuals' access to social programs and credit services. By participating in productive associations, individuals give a good signal to firms and are rewarded with better transactions and more access to the services they provide, ceteris paribus. Estimates using 2005 data indicate that households that participate in productive associations display higher access to credit and to social programs that promote investment. Additionally, participation in productive associations is weakly associated to more favorable credit outcomes among those households that receive loans, such as lower interest rates and a lower probability of wanting more credit than what was accessible to them.

Collective --- Collective action --- Collective action problem --- Communities & Human Settlements --- Corporate Law --- Debt Markets --- Finance and Financial Sector Development --- Housing and Human Habitats --- Individuals --- Insurance and Risk Mitigation --- Labor Policies --- Law and Development --- Municipality --- Principal-agent --- Principal-agent problems --- Proxy --- Public firms --- Social Protections and Labor --- Unions

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In many developing countries (and beyond), public sector workers are not just simply implementers of policies designed by the politicians in charge of supervising them-so called agents and principals, respectively. Public sector workers can have the power to influence whether politicians are elected, thereby influencing whether policies to improve service delivery are adopted and how they are implemented, if at all. This has implications for the quality of public services: if the main purpose of the relationship between politicians and public servants is not to deliver quality public services, but rather to share rents accruing from public office, then service delivery outcomes are likely to be poor. This paper reviews the consequences of such clientelism for improving service delivery, and examines efforts to break from this "bad" equilibrium, at the local and national levels.

Clientelism --- Governance --- National Governance --- Public Sector Development --- Public Sector Reform --- Rent Seeking --- Service Delivery

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This paper studies the relationship between inequality of opportunity and development outcomes in a cross-country setting. Scholars have long debated the impact of inequality on growth, development, and the quality of institutions in a society. The empirical relationships are however confounded by the notion that "inequality" can be seen as a composite of inequality arising from differences in effort and ability, which would tend to encourage competition and productivity, and inequality attributable to unequal opportunities, particularly in terms of access to basic goods and services, which might translate to wasted human potential and lower levels of development. The analysis in this paper applies a measure of educational opportunities that incorporates inequality between "types" or circumstance groups. Theories from economic history are used to instrument for this type of inequality in a large cross-country dataset. The results seem to confirm the hypothesis that this measure of inequality of opportunity is a better fit for structural inequality than the Gini index of income. The results suggest that inequality of endowments at the outset of history led to unequal educational opportunities, which in turn affected development outcomes such as institutional quality, infant mortality, and economic growth. The findings are robust to several checks on the instrumental variable specification.

Economic Theory & Research --- Education --- Equity --- Growth --- Health, Nutrition and Population --- Inequality --- Information and Communication Technologies --- Information Security and Privacy --- Institutions --- Macroeconomics and Economic Growth --- Opportunity --- Population Policies --- Poverty Impact Evaluation --- Poverty Reduction

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In many low-income countries, teachers do not master the subject they are teaching, and children learn little while attending school. Using unique data from nationally representative surveys of schools in seven Sub-Saharan African countries, this paper proposes a methodology to assess the effect of teacher subject content knowledge on student learning when panel data on students are not available. The paper shows that data on test scores of the student's current and the previous year's teachers, and knowledge of the correlation structure of teacher knowledge across time and grades, allow estimating two structural parameters of interest: the contemporaneous effect of teacher content knowledge, and the extent of fade out of teacher impacts in earlier grades. The paper uses these structural estimates to understand the magnitude of teacher effects and simulate the impacts of various policy reforms. Shortfalls in teachers' content knowledge account for 30 percent of the shortfall in learning relative to the curriculum, and about 20 percent of the cross-country difference in learning in the sample. Assigning more students to better teachers would potentially lead to substantial cost-savings, even if there are negative class-size effects. Ensuring that all incoming teachers have the officially mandated effective years of education, along with increasing the time spent on teaching to the officially mandated schedule, could almost double student learning within the next 30 years.

Education --- Education Policy and Planning --- Educational Institutions and Facilities --- Educational Policy and Planning --- Educational Sciences --- Effective Schools and Teachers --- Public Service Delivery --- Student Learning --- Teacher Effects --- Teacher Performance