The economics of education and policy: Ideas for a principles course

There are many aspects of the “economics of education” that would make excellent examples for introductory economics students. The author presents two topics that are central to the economics of education and to human capital theory: the economic benefit (or “returns”) to schooling and educational attainment as an investment. There are two key concepts the author hopes students get from this discussion. The first is that there are both private and social benefits of schooling whence we derive the rationale for government intervention. The second is that educational attainment is an investment decision with both costs and benefits, and some risk.     

Education on the cheap: The long-run effects of a free compulsory education reform in rural china

This paper evaluates the long-run effects of a free compulsory education reform in rural China on individuals’ educational attainment, cognitive achievement and health. We exploit the cross-province variation in the roll-out of the reform and apply a difference-in-differences strategy to identify the causal effects of the reform on the outcomes. We find that the reform exposure, measured by the number of semesters that an individual is supposed to be exposed to the free compulsory education, is positively associated with individuals’ educational attainment and cognitive achievement measured by math test scores in early adulthood. The reform effects on educational attainment become greater in the longer term. Moreover, the reform effect on educational attainment is stronger for individuals with less-educated fathers.     

Understanding the Intergenerational Transmission of Human Capital: Evidence from a Quasi‐natural Experiment in China

This paper exploits the closure of senior secondary schools in urban China from 1966 to 1971 in order to identify the causal intergenerational transmission effects of education. The paper uses the instrumental variable approach to examine the intergenerational causality of educational transmission at the senior secondary schooling level in urban China. The exogenous variation in parental senior secondary educational attainment both over time and across regions allows us account for selection bias and thus identify the causal intergenerational transmission effect in education. We further show that our conclusion is robust to alternative identification strategies and data sets.     

The Effect of Education on the Timing of Marriage and First Birth in Pakistan

A rapid rise in women’s education levels, an increase in the age at marriage and an increase in the age at which they have their first child are key features of demographic transition in any country. Education is considered to be an essential component in this process because increases in educational attainment are likely to significantly affect both age at marriage and the duration between marriage and first birth - in particular increasing both the age at marriage and the time to first child. This paper uses individual level unit record data from Pakistan to examine the effect of education on the age at marriage and on the duration between marriage and first birth. We jointly estimate educational attainment, age at marriage and duration between marriage and first birth allowing for household level unobserved heterogeneity. We find that educational attainment increases the age at marriage but does not have a statistically significant effect on the duration between marriage and first birth. However, there is a threshold level of education that must be attained before educational attainment starts having an effect on the hazard of marriage.

     

Do family resources matter? Educational attainment during transition in Poland*

We analyse the relationship between family background and children's educational attainment in the 1990s in Poland. If parental poverty affects children's educational prospects, the increase in social inequalities observed in the Polish transition process will be transmitted between generations. We apply an ordered probit model of educational attainment on longitudinal data from the Polish Labour Force Survey. Surprisingly, parents’ income and their labour market status have only a weak impact on children's education. Parents’ schooling, however, is strongly related to children's, and so are household structure, city size, and region of residence. We conclude that, if transmission of inequality takes place between generations, this seems to be primarily caused by the inheritance of human capital rather than by pure wealth effects.     

The curse of low expectations

We examine how a remedial education programme for primary school‐age children affects parental expectations about their children's future. Using original survey data we collected in Serbia, we investigate whether expectations on labour market prospects and educational attainment change as a consequence of exposure to the Roma Teaching Assistant programme. Our results show that parents of pupils in treated schools expect higher returns to education for their children and are more likely to expect them to achieve a secondary level of education. We also investigate the possible mechanisms in place due to the characteristics of the programme: remedial education and role model.     

Educational attainment and cohort size

"We argue that the postwar baby boom [in the United States] caused substantial fluctuations in both the economic rewards to education and educational attainment over the last 3 decades. If substitutability between young and old workers diminishes with education, the present value of lifetime earnings for a boom cohort is depressed more for highly educated workers, reducing incentives for educational attainment. The opposite is true for pre- and postboom cohorts. The diminishing substitutability hypothesis explains the declines in both the returns to college and college completion rates in the 1970s and predicts a substantial increase in educational attainment for postboomers."     

Educational Attainment and Family Background

Abstract. This paper analyses the effect of aspects of family background, such as family income and parental education, on the educational attainment of persons born from 1967 to 1972. Family income is measured at different periods of a child's life to separate long-term versus short-term effects of family income on educational choices. We find that permanent income matters to a certain degree, and that family income when the child is 0–6 years old is an important explanatory variable for educational attainment later in a child's life. We find that short-term credit constraints have only a small effect on educational attainment. Long-term factors, such as permanent family income and parental education, are much more important for educational attainment than are short-term credit constraints. Public interventions to alleviate the effects of family background should thus also be targeted at a child's early years, the shaping period for the cognitive and non-cognitive skills important later in life.     

论教育自由与人才培养的关系

本文横向解剖了以美国哈佛大学为例的自由教育，纵向分析了教育史上的几个重要时期，同时探讨了人的自由本性；通过对教育自由与人才培养之间关系问题的多角度分析，首次提出了教育的自组织理论。该理论认为：只有独立的、自由的、开放的教育才能够充分发挥其自组织功能，才能够培养出原创性人才；中国的教育要想能够培养出创造性人才，必须改变对人的生命和人的教育以及政治理性与教育理性关系的基本理念。     

Impact of Education on Household Welfare in Nigeria

Human capital development, especially higher educational attainment, attaches high premium to its expected economic benefits, in form of better welfare. This study investigates the effect of educational attainment of household head on two indicators of household welfare, namely labour market earnings and household per capita total expenditure on food and non-food items in Nigeria. The study uses the Double Hurdle (DH) model and Quantile Regression (QR) to address these objectives. The empirical results show that returns to schooling are substantially higher at the tertiary level of education compared with primary, secondary, and postgraduate levels of education in Nigeria. Furthermore, additional years of tertiary education attainment by household heads was found to increase household per capita total expenditure more than additional years of primary, secondary and postgraduate education. The implication of these findings is that the improvements in economic welfare of households in Nigerian is driven more by the attainment of tertiary education by household heads, relative to other levels of education.     

Differences in the response heterogeneity of educational attainment and achievement to the same instrumental variable

The typical econometric application of instrumental variable (IV) estimates imposes a constant-treatment-effect model for all individuals. Using regression discontinuity design, we find while older school starters tend to have lower educational attainment, they are more likely to achieve qualifications at different educational levels for the UK. This finding joins the discussion on instruments for educational outcomes by offering some evidence that school starting age can affect treated individuals diversely. We highlight that identifying the treatment effect with methods similar to IV estimates should be concerned in the context of heterogeneous treatments; that is, the instrument in question has an effect on treatment for particular subpopulations only, and those subpopulations may not be the same for different treatments.     

中国城市教育资源的差异比较

利用最新统计数据,分析了中国地级及以上城市人均教育经费、教育支出占GDP的比重及生师比差异的现状,并在分析其成因的基础上提出了相应的政策建议。结论是:目前中国城市人均教育经费差异很大,城市间高等教育阶段生师比的差距比较大,而基础教育的差距相对较小;城市经济发展水平是影响这些差异的主要因素,其次是城市人口规模;促进不发达地区城市和小城市的经济发展、建立合理的人口流动机制是消除城市间教育资源差异的有利措施。     

Cross-country variation in educational attainment: structural change or within-industry skill upgrading?

Educational attainment varies greatly across countries and within countries over time. This paper asks whether the variation in education is primarily due to industry composition or to within-industry skill intensities. The main finding is that within-industry variation accounts for at least two-thirds of the cross-country and the time-series variation in educational attainment. The within-industry education gaps are broadly consistent with a model of industry neutral cross-country differences in skilled labor productivity. These results suggest that theories of educational development should focus on skill upgrading within industries rather than structural change.     

BEYOND TEST SCORES: THE IMPACT OF BLACK TEACHER ROLE MODELS ON RIGOROUS MATH TAKING

Rigorous math has a positive impact on ultimate educational attainment and earnings, but black high school students enroll in advanced math classes at low rates. Curriculum choice is determined by prior academic achievement and expectations for future schooling, both of which can be influenced by role models. This article finds that increasing the percentage of math teachers who are black has a nontrivial, positive impact on the likelihood that a black geometry student will enroll in a subsequent rigorous math course. This race-based role model effect occurs only for opposite-sex student/teacher matches.     

关于教育与就业关系的一个理论模型及实证检验

In this paper, we divide the process of educational development into two aspects: the change in educational structure and the expansion of educational scale. Based on this hypothesis, we analyze the relationships between each of the two aspects and employment respectively. In this paper, the factors and the transmission mechanism of the influence that education has on employment are also explained. Then, the theoretical models of the relationship between education and employment are built up. Finally, we use the empirical data collected in China to test the theoretical models and give explanations to the status quo of the unemployment structure within various educational levels. It suggests that: the development of education in China at present is beneficial to the increase in the employment rate, the increase in the proportion of the laborers with junior school education has negative effects on employment, and the development of higher education creates positive effects on the employment, but no evidence shows any significant correlation between the proportion of the laborers with senior high school education and the unemployment rate. Translated from Xin Zhengzhi Jingjixue Pinglun 新政治经济学评论 (Review of New Political Economy), 2006, 2(1): 46–69     

中国农村地区的家庭成份、家庭文化和教育

本文考察了中国农村地区家庭成份的划分对家庭成员受教育水平的代际影响。考察地主/富农家庭出身的男性户主的受教育水平,我们发现它在毛泽东时代因成份歧视的影响出现了下降,而在改革开放之后又有所反弹。我们也发现,年龄在16—18岁之间的孩子中,地主/富农和中农家庭的后代具有较高的受教育水平。我们的结果表明中国农村家庭作为一种文化制度,其延续性和坚固性需要予以更多的关注。     

The labor market effects of skill-biased technological change in Malaysia

During the last half-century, the evolution of educational attainment in Malaysia has been spectacular, and the current enrollment rates suggest that this progression will continue. Such a transformation of the labor skill composition should bring about macroeconomic effects such as wage compression, sectoral shifts and high skill unemployment, unless compensatory mechanisms exist. Relying on decomposition techniques, we argue that skill biased technological change (SBTC) occurred in Malaysia in recent years, and permitted unemployment figures to remain low and skill premia not to sink. We also develop a dynamic general equilibrium model, simulating the absence of SBTC and limit the number of admissions to higher education. The results are fed to a microsimulation module. They show that the reduction in wage inequalities could have been substantially more important had SBTC not been present. Furthermore, they suggest that the open-door higher education policy has contributed heavily to a reduction in wage inequalities.     

Number of siblings and educational attainment: application of son preference

This article examines the relation between the number of children in Taiwanese families and the educational attainment of those children. To identify the causal relation, our analysis operationalizes the traditional Taiwanese parental preference for male children as an instrumental variable to generate exogenous variations in the number of siblings. Ordinary least square estimates reveal that a larger number of siblings results in lower educational attainment. However, after addressing for the endogeneity of the number of siblings, our two-stage least square estimates result in doubt of the existence of a trade-off between child quantity and quality within a family.     

GENDER INEQUALITY IN EDUCATION IN CHINA: A META‐REGRESSION ANALYSIS

Although there is evidence that there was gender inequality in China's education system in the 1980s, the literature in China has mixed evidence on improvements in gender inequality in educational attainment over the past three decades. Some suggest gender inequality is still severe; others report progress. We seek to understand the progress China has made (if any) in reducing gender inequality in education since the 1980s. To meet this goal, we use a meta‐analysis approach which provides a new quantitative review of a relatively large volume of empirical literature on gender educational differentials. This article analyzes differences across both time and space, and also across different grade levels and ethnicities. Our results indicate that gender inequality in educational attainment still exists, but it has been narrowing over time. Moreover, it varies by area (rural versus urban) and grade level. There is nearly no significant gender inequality in the case of girls in urban areas or in the case of the 9 years of compulsory education (primary school and junior high school). Girls, however, still face inequality in rural areas (although inequality is falling over time) and when they reach high school or beyond. (JEL I24)     

The educational attainment of immigrants: trends and implications

"This paper uses the 1970, 1980, and 1990 U.S. Censuses to study trends in educational attainment of immigrants relative to natives. Immigrants have become relatively less highly educated, but have become more highly educated in an absolute sense. The effects of changes in relative educational attainment between immigrants and natives on earnings are studied. Educational differences are found to explain more than half the observed wage gap between the two groups. The paper also allows for non-linearities in returns to education. Sheepskin effects influence earnings in different ways for natives and immigrants. Differences in returns to pre- and post-migration education also appear. The paper also finds evidence that immigrants crowd natives out of education, although the effects are stronger in secondary than in postsecondary education."