Literacy and Intrahousehold Externalities |
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| Institution: | 1. Palau International Coral Reef Center, 1 M-Dock Road, P.O. Box 7086, Koror 96940, Palau;2. Bureau of Arts and Culture, P.O. Box 100, Koror 96940, Palau;3. United Nations Joint Presence (GEF-SGP), Suite 301, 3rd Flr. Surangel Building, Koror 96940, Palau;4. Palau Automated Land and Resource System, P.O. Box 100, Koror 96940, Palau;5. The Nature Conservancy, Palau Field Office, P.O. Box 1738, Koror 96940, Palau;1. Department of Economic Analysis, University of Zaragoza, Spain;2. Department of Applied Economics and Economic History, University of Zaragoza, Spain;1. Natural Resources Institute, University of Greenwich, UK;2. United Nations Nutrition, Italy |
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| Abstract: | The size of the intrahousehold externality created when a literate household member provides literacy services to illiterate members is estimated in this paper, using a model of children's height-for-age in Papua New Guinea. This externality appears to be large. These results support the use of a new measure of literacy, developed by Basu and Foster (1998) to take account of the gains when illiterates live in households where at least one person is literate. Regional rankings change when the new measure of literacy is used, suggesting that policies guided by the usual measure of adult literacy may overlook an important pathway for human development. |
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