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The income generated from parental migration can increase funds available for children's education. In countries where informal payments to teachers are common migration could therefore increase petty corruption in education. This hypothesis is tested by investigating the effect of migration on educational inputs. An instrumental variables approach is used on survey data and matched administrative records from the World Bank's Open Budget Initiative (BOOST) from Moldova, one of the countries with the highest emigration rates. Contrary to the positive income effect, the strongest migration-related response in private education expenditure that is found is a substantial decrease in informal payments to public school teachers. Any positive income effect due to migration must hence be overcompensated by some payment-reducing effects. A number of potential explanations at the family level, school level or community level are discussed, several of these explanations ruled out and possible interpretations for future research highlighted.
Corruption --- Education Spending --- Emigration --- Migration --- Social Remittances
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The barriers faced by Chinese rural-urban migrants to access social services, particularly education, in host cities could help explain why the majority of migrants choose to leave their children behind. This paper proposes a theoretical framework that allows for an explicit discussion of the link between school fees and the decision of migrant parents to bring their children to the city. The analysis instruments the endogenous school fees with unexpected shocks to the city's public education spending, and empirically tests the theoretical predictions. The findings suggest that higher fees deter migrant workers from bringing their children, especially their daughters; reduce the number of children they bring; and increase educational remittances to rural areas for the children left behind. Increases in school fees most affect vulnerable migrant workers, and are likely to have stronger impacts during an economic crisis. These findings hold for different model specifications and robustness checks.
Child Migration --- Public Education Spending --- School Fees --- Urbanization
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How can countries make sustainable gains in student learning at scale? This is a pressing question for Latin America and the Caribbean (LAC)--and the developing world more broadly--as countries seek to build human capital to drive sustainable growth. Significant progress in access has expanded coverage such that nearly all children in the region attend primary school, but many do not gain basic skills and drop out before completing secondary school, in part due to low-quality service delivery. The preponderance of evidence shows that it is learning--and not schooling in and of itself--that contributes to individual earnings, economic growth, and reduced inequality. For LAC in particular, low levels of human capital are a critical factor in explaining the region's relatively weak growth performance over the last half century. The easily measurable inputs are well-known, and the end goal is relatively clear, but raising student achievement at scale remains a challenge. Why? Part of the answer lies in management--the managers, structures, and practices that guide how inputs into the education system are translated into outputs, and ultimately outcomes. While management is often mentioned as an important factor in education policy discussions, relatively little quantitative research has been done to define and measure it. And even less has been done to unpack how and how much management matters for education quality. This study presents new conceptual and empirical contributions that can be synthesized in four key messages: 1. Student learning is unlikely to improve at scale without better management. 2. Management quality can be measured and should be measured as a catalyst for improvement. 3. Management affects how well every level of an education system functions, from individual schools to central technical units, and how well they work together. 4. Several pathways to strengthening management are open to LAC countries now, with the potential for significant results. The study elaborates on each of these messages, synthesizing recent data and research and presenting the results of several new research initiatives from across the region.
Coronavirus --- COVID-19 --- Education Management --- Education Outcomes --- Education Quality --- Education Spending --- Education Systems Reforms --- Learning Loss --- Public Schools --- Student Learning
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Improving access to quality education has been the backbone of several development strategies around the world and considerable public resources have been dedicated to achieving this goal. However, one could wonder whether increasing public education expenditure would drive better access to quality education despite the inefficiencies plaguing public sectors in general. The purpose of this study is to investigate the efficiency with which public education spending is translated into increased access to quality education in the light of the learning-adjusted years of schooling. The results show that education expenditure per school-age individual is positively associated with an increased number of years of quality schooling. However, it is estimated that, on average, 16 percent of the public financial resources dedicated to education in developing countries are wasted because of inefficiencies. Although efficiency greatly varies across countries, low-income countries are overall facing a double issue of low levels of education expenditure and weak efficiency of public expenditure on education. Factors related to governance, labor market conditions, and the type of education aid seem to matter for efficiency.
Economics of Education --- Education --- Education Finance --- Education Quality --- Education Reform and Management --- Education Spending --- Educational Attainment --- Efficiency --- Public Expenditure --- Public Sector Development
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This paper assesses the efficiency of government expenditure on education and health in 38 countries in Africa in 1984-95, both in relation to each other and compared with countries in Asia and the Western Hemisphere. The results show that, on average, countries in Africa are less efficient than countries in Asia and the Western Hemisphere; however, education and health spending in Africa became more efficient during that period. The assessment further suggests that improvements in educational attainment and health output in African countries require more than just higher budgetary allocations.
Public Finance --- National Government Expenditures and Health --- National Government Expenditures and Education --- National Government Expenditures and Related Policies: General --- Education: General --- Health: General --- Public finance & taxation --- Education --- Health economics --- Expenditure --- Education spending --- Health care spending --- Health --- Expenditures, Public --- Burkina Faso
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This paper examines the dynamic responses of income and poverty to increased investment in the human capital of new cohorts of workers, using a quantitative macroeconomic model with realistic demography. Compared to a baseline in which the rate of human capital investment currently observed in every country remains constant, the paper examines two alternative scenarios: one in which each country experiences a rate of growth of human capital investment that is typical of what was observed in the decade ending in 2015, and one in which each country raises human capital investment at a rate corresponding to the 75th percentile of what was observed in the data. In the former, world GDP per capita is 5 percent higher than baseline in the year 2050, while the global rate of USD 1.90 poverty is 0.7 percentage points lower in that year. In the latter, world GDP per capita is 12 percent higher than baseline in 2050, while the rate of USD 1.90 poverty drops by 1.4 percentage points. These gains are concentrated in poor countries. The paper argues in the context of our model that investing in people is more cost effective than investing in physical capital as a means to achieve specified income or poverty goals.
Early Child And Children's Health --- Economic Growth --- Economic Theory & Research --- Education --- Education Spending --- Educational Sciences --- Health Care Services Industry --- Health, Nutrition And Population --- Human Capital --- Industrial Economics --- Inequality --- Nutrition --- Poverty --- Poverty Reduction --- Reproductive Health
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This paper looks at how countries have mobilized additional resources for education and assesses their impact on access and learning outcomes, using the World Bank's new Learning-Adjusted Years of Schooling measure. The paper shows that global spending on education has risen significantly over the past two decades, although spending as a share of gross domestic product has remained relatively unchanged, at about 4.5 percent. However, global trends mask large differences across regions and country income groups. For example, low-income countries recorded the largest increases in terms of the share of GDP spent on education, but the absolute amount they devoted to education remained low compared to other countries. Economic growth has been the main driver of increases in public education spending. Yet, countries that achieved the largest and most rapid spending increases did this through a combination of increases in overall government revenues, a greater prioritization of education in the government budget as well as healthy economic growth. Increases in public education spending did not generally result in major improvements in average education outcomes. Using the available data, the paper shows that a doubling of government spending per child led to an increase in learning-adjusted years of schooling of only half a year. Preliminary findings also show that countries with lower efficiency and spending are expected to get the most from increases in spending in improved education outcomes. The paper concludes by outlining an approach that allows countries to assess their potential for increasing education funding and the expected effects on their education outcomes, based on benchmarks drawing from the data of comparable countries. It also underscores the urgent need to improve data on public education spending and education outcomes, to extend this analysis to cover a wider set of countries and increase the robustness of country-level benchmarks.
Economic Growth --- Economic Theory and Research --- Education --- Education Finance --- Education Outcomes --- Educational Sciences --- Fiscal Space --- Industrial Economics --- Macroeconomics and Economic Growth --- Primary Education --- Public Education Spending --- Public Sector Development --- Secondary Education
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Consumption in China is unusually low and has continued to decline as a share of GDP over the past decade. A key policy question is how to reverse this trend, and rebalance growth away from reliance on exports and investment and toward consumption. This paper investigates whether the sizable increase in government social spending in recent years lowered precautionary saving and increased consumption. The main findings are that spending on health, but not education, had an impact on household behavior. The impact, moreover, is large. A one yuan increase in government health spending is associated with a two yuan increase in urban household consumption.
Consumption (Economics) --- Economics --- Macroeconomics --- Public Finance --- National Government Expenditures and Health --- National Government Expenditures and Related Policies: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Aggregate Factor Income Distribution --- National Government Expenditures and Education --- Public finance & taxation --- Health care spending --- Expenditure --- Consumption --- Income --- Education spending --- Expenditures, Public --- China, People's Republic of
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This paper studies the evolution of worldwide military spending during 1970-2018. It finds that military spending in relation to GDP is converging, but into three separate groups of countries. In the largest group, responsible for 90 percent of worldwide spending, outlays have remained stubbornly high. Military spending in developing economies reacts to improvements in security conditions and military spending in neighboring countries, suggesting that further increases in the peace dividend are possible. In developing economies, rising social spending tends to crowd out military outlays, but this is not the case in advanced economies. With social outlays projected to rise as developing countries look to achieve the Sustainable Development Goals (SDGs), military spending could come under pressure to fall further.
Expenditures, Public. --- Appropriations and expenditures --- Government appropriations --- Government expenditures --- Government spending --- Public expenditures --- Public spending --- Spending, Government --- Finance, Public --- Public administration --- Government spending policy --- Public Finance --- National Government Expenditures and Related Policies: General --- National Government Expenditures and Health --- National Government Expenditures and Education --- National Security and War --- Public finance & taxation --- Defense spending --- Expenditure --- Health care spending --- Total expenditures --- Education spending --- Expenditures, Public --- United Kingdom
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This paper, using Moldova as an example, presents a systematic approach to assess the efficiency and equity of public education spending, identify sources of inefficiencies and inequality, and formulate potential reform options. The analytical framework combines international benchmarking with country-specific analysis—such as microeconomic analysis based on household survey data—and can provide important insights into diagnosing and reforming education systems. The analysis finds significant scope to improve both efficiency and equity of the education sector in Moldova. Potential reform measures include further consolidating the oversized school network, reducing overstaffing, and better targeting government subsidies. The current remuneration policy could also be improved to attract high quality teachers and incentivize performance.
Labor --- Public Finance --- Demography --- National Government Expenditures and Education --- Education and Inequality --- Education: Government Policy --- Education: General --- Wages, Compensation, and Labor Costs: General --- National Government Expenditures and Related Policies: General --- Demographic Economics: General --- Education --- Public finance & taxation --- Labour --- income economics --- Population & demography --- Education spending --- Wages --- Expenditure --- Population and demographics --- Expenditures, Public --- Population --- Moldova, Republic of --- Income economics
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