Narrow Results

Using a natural experiment, we examine the causal effect of a team incentive scheme on teachers in a Chinese middle school that intended to help the school’s students improve in their weak subjects. The scheme was successful, the average treatment effect is positively significant in math and total scores. The most improvement observed in top students’ weak subjects. The top students weak in math, English and social science improved in those subjects by 0.12, 0.10, 0.16 standard deviations, respectively. Students at the bottom 20% of the testing distribution also improved in Chinese and math.

We pursue a cross-country comparison of relative financial readiness of older households in Japan and the Republic of Korea relative to the United States. Our comparative analysis, using macro-level and harmonized longitudinal household financial data, covers the principal financial channels of old-age support: public and private pension plans, family support, and self-management of private financial portfolios. We find that while all three countries have similar public pension systems, older Americans benefit from more developed and better-funded public and private pension systems, as well as individual management of risky financial portfolios. We find that educational and health attainments of household heads and household wealth lead to a greater tendency to hold and manage risky assets. Our decomposition analysis also shows that the gap in stock ownership in Asian countries relative to the United States can be attributed to lower levels of development in financial and pension markets. However, these gaps have been shrinking more recently.

In rural areas of developing countries, shocks and financial constraints on households are generally recognized as obstacles to children’s schooling opportunities. This paper investigates the effects of income shocks and borrowing constraints on household demand for education in rural Thailand, using the Townsend Thai panel data spanning from 2013 to 2017. Information on annual rainfall at the provincial level is used to estimate a transitory income component for Thai rural households. Estimation results indicate that income risks and borrowing constraints have a substantial negative impact on child schooling outcomes, including educational attainment and the number of years delayed in school. It also finds that transitory income results in increased household education expenditures conditional on children’s attendance at school. These findings suggest that in addition to households’ socioeconomic status, children’s human capital is at risk mainly due to income uncertainty and the absence of well-developed financial and insurance markets.

We develop an overlapping generation model to examine how the relationship between status concerns, fertility and education affect growth performances. Results are threefold. First, we show that stronger status motives heighten the desire of parents to have fewer but better educated children, which may foster economic development. Second, the government should sometimes postpone the introduction of an economic policy in order to maintain the process of economic development, although such a policy aims to implement the social optimum. Third, status can alter the dynamic path of the economy and help to explain the facts about fertility during the great transition.

The phenomenon of terrorism has riveted world's unwavering attention since 9/11. The underlying study investigates the determinants of terrorism in the South Asian region. Applying negative binomial regression, the study finds that both political structure and economic conditions are responsible for terrorism. On the economic front, relative deprivation represented by income disparity is the major cause of terrorism. On the other hand, deprivation of the people of their political rights and civil liberties, exhibited by political repression, compels them to be involved in terrorist activities. Our findings illustrates that high literacy rate is one of the foremost reason for terrorism in the region.

The rapid expansion of higher education in the late 1980s in Taiwan has resulted in a swift increase in the supply of highly-educated workers in the labor market. This research differs from past studies in that it analyzes the effect of the rapid expansion in higher education in Taiwan with emphasis on the cohort effect, specifically examining the effect of changes both in intra-cohort relative supply and the aggregate relative supply on college returns. Besides, when estimating the aggregate relative supply of college graduates, this study takes into account the substitutability between younger and older educated workers. We present evidence that the expansion policy has significantly depressed college premiums for workers of all ages, but the adverse effect is particularly concentrated among the younger cohorts. Furthermore, we found the elasticity of substitution between college and high school graduates to be 3–4 times higher than in developed countries. We also found the important role played by the demand side, likely linked to technological progress and changes in export structure toward the more technologically intensive. As a consequence, the expansion of higher education and increase in the relative demand for higher-educated workers, along with high elasticity of substitution between college and high school graduates, led to the rigid low college premiums.

We present evidence against the well-established education–health gradient by relating education to measured hypertension status in 5,873 men and 6,152 women aged 40$+$ in Indonesia. Once a basic set of covariates was controlled for, the two variables were not statistically significantly related. We argue that this lack was due to neglect of chronic diseases. It appears that the assumption of full information in theories on the education–health gradient is too strong to be applied to the developing world. Therefore, more information needs to be provided to the public regarding the seriousness of chronic diseases and preventive and curative methods.

This study is conducted to examine the effect on income inequality of government spending on education across 63 provinces in Vietnam. The generalized method of moments (GMM) regression technique is used to address potential endogeneity in the model caused by income inequality and inequality in government spending on education. Income inequality is proxied by both the Gini coefficient and the Theil index. Inequality in government spending on education in Vietnam is estimated using a novel entropic approach, which decomposes the inequality into two components: “within-province” inequality and “between-province” inequality. Data for the period from 2010 to 2016 are used. Our empirical findings are summarized as follows. First, “within-province” inequality accounts for a substantial portion of inequality in government spending on education. This means that although the Vietnamese national government has done well in terms of allocating spending on education across 63 provinces, inequality in education spending appears across districts within provinces. Second, both total inequality of government spending on education and its two components are positively associated with income inequality across provinces. As such, reducing differences in government spending on education across provinces and across districts within provinces is an effective mechanism for reducing income inequality across provinces and across districts within provinces in Vietnam.

This study focused on the trilemma association of education, income and poverty alleviation: managerial implications for inclusive economic growth in developing countries in Asia to establish the proportion of the poor in the population and further identify its determinants. This research utilized secondary data from 1990 to 2016 by using econometric estimation. The results show that education decreases poverty when evaluated through the poverty gap and poverty headcount ratio and employment and increasing rate of economic development in the form of GDP to reducing poverty. GDP the Gini coefficient show the same signs while the magnitudes of the coefficients. Consequently, improvement in an independent variable will decrease poverty while the results have various levels of contributions through static and dynamic panel data methods, that education can reduce poverty. Results indicate that the level of poverty stood at 62.2%. The level of education, poverty headcount ratio, poverty gap and secondary school enrolment were significant in determining a household’s poverty status. However, land ownership and household head’s occupation were not statistically significant in explaining the probability of a household’s poverty status. From the results, this study recommends that all stakeholders work towards reducing poverty in the study to enhance education and family planning.

Inequality in access to education is known to be a key driver of income inequality in developing countries. Viet Nam, a transitional economy, exhibits significant segmentation in the market for skilled labor based on more remunerative employment in government and state firms. We ask whether this segmentation is also reflected in human capital investments at the household level. We find that households whose heads hold state jobs keep their children in school longer, spend more on education, and are more likely to enroll their children in tertiary institutions relative to households whose heads hold nonstate jobs. The estimates are robust to a wide range of household and individual controls. Over time, disparities in educational investments based on differential access to jobs that reward skills and/or credentials help widen existing income and earnings gaps between well-connected “princelings” and the rest of the labor market. Capital market policies that create segmentation in the market for skills also crowd out investment in private sector firms, further reducing incentives for human capital deepening.

This paper analyzes the equity of opportunity in basic education and infrastructure services in seven developing countries, Bangladesh, Bhutan, Indonesia, Pakistan, the Philippines, Sri Lanka, and Viet Nam. The analysis applies a method developed by the World Bank called the Human Opportunity Index, which measures the total contribution of individual socioeconomic and demographic circumstances to inequality of opportunity in accessing basic services. The new and major contribution of the paper, however, is the development of a methodology that quantifies the relative contribution of each circumstance variable to the inequality of opportunity. This contribution is crucial in identifying which underlying inequalities matter most—which can have important policy implications, for instance, in terms of developing better-targeted interventions. Results of the empirical analysis indicate that more needs to be done to improve the distribution of economic benefits. Opportunities to access basic education and infrastructure services in the seven countries vary widely in terms of availability and distribution. The study also finds that inequality of opportunity is driven mainly by per capita household expenditure. This suggests that household poverty plays a crucial role in determining equitable access to basic services.

Using 2007–2010 data from Thailand's National Labor Force Survey, this paper examines the rates of return to schooling. The Mincer-type rate of return to investment in schooling was estimated. The rates of return to schooling for work experience are significantly positive, but at a decreasing rate. Region of residence and variation in gross provincial product per capita are significant factors in determining the private rate of return. The rates of return to schooling by type of industry reveal higher earnings in mining, utilities, construction, manufacturing, and services than in agriculture. The private and social returns on vocational secondary education attainment are greater than on general secondary education. Finally, the private returns on university attainment for women exceed men by about 1.5 percentage points.

Recent decades have witnessed an unprecedented expansion of democracy. During the third wave of democratization, as described by Samuel Huntington, democracy spread well beyond its historical boundaries and it is now adopted in all major regions of the world. Yet, not all democracies are equally effectual in delivering good governance and progrowth policies. Why do democratic institutions induce good governance and prosperity only in some economies? This paper presents an overview of the dimensions along which successful and unsuccessful democracies differ. It argues that four socioeconomic variables are of critical importance to create and maintain a well-functioning democracy: (i) social capital, (ii) information, (iii) education, and (iv) equality. History also plays an important role as do the contingencies characterizing the collapse of authoritarian regimes and the emergence of democratic institutions.

Using data from the 2007 Timor-Leste Living Standards Survey, this paper examines the determinants of household energy choices in Timor-Leste. The majority of households are dependent on dirty fuels such as fuelwood and kerosene for energy. Only a small fraction of households use clean energy such as electricity. Econometric results show that wealthy households, urban households, and those headed by individuals with higher levels of education are less likely to use and depend on kerosene and more likely to use and depend on electricity. While female-headed households are generally more likely to use and depend on fuelwood, richer female-headed households are more likely to use and depend on electricity. Our findings highlight the importance of ensuring an adequate supply of clean energy for all at affordable prices and of investing in education to raise awareness about the adverse impacts of using dirty fuels.

Households in developing countries predominantly rely on solid fuel for cooking, which is injurious to both the environment and human health. The provision of clean energy for cooking, therefore, is essential for safeguarding the environment and human health, primarily of women and children in developing countries. Using the 2014–2015 Pakistan Social and Living Standards Measurement Survey and robust econometric methods, this study analyzes different types of energy used for cooking among urban households in Pakistan. The study shows that although urban households in Pakistan mostly use gas for cooking, the use of solid fuels, particularly among poor and relatively less educated households, is pervasive. The econometric findings confirm that households with a higher level of education and wealthy families mainly use clean energy, such as gas, and are less likely to use dirty solid fuels, such as cake dung and crop residue for cooking. Considering the expansion of middle-class households and anticipating their demand for clean fuel for cooking, this study suggests ensuring an adequate supply of clean sources of energy to meet future demand as well as augmenting the affordability and awareness among households who are still dependent on solid fuels.

This study analyses social inequality in education in China, focusing on parental class effects on children’s educational attainment. While there is a massive increase in the state provision of educational opportunities, class differences persist and are becoming even more pronounced for the younger cohort. The growing social disparity as found in China is at odds with findings of trendless fluctuation or weakening inequality in the Western societies. It is argued that it is the growing socio-economic disparity in China as compared with the relative stability in class-lined conditions in the Western countries that may account for the different findings between this study and those by other scholars.

In 2002, the Chinese Communist Party (CCP) announced a goal of quadrupling per capita income by the year 2020. Starting at income levels of the year 2000, this would require a growth rate of 7.2 percent per annum in per capita income or close to 8.0 percent in GDP. Such unresolved and emerging problems as growing income disparities, increasing pollution, pressures on infrastructure, the inefficiency of stateowned enterprises, and political instability are often cited as reasons to doubt the attainability of the CCP's goal. However, China's progress in addressing fundamental constraints that might limit rapid economic growth augurs well for the success of its economic goals. Although there are disagreements about economic policy among top leaders, the continued transformation into a market economy and the promotion of increasing local autonomy in economic matters are not in doubt. In education, China has substantially increased the percentage of its workforce receiving a college education, and continuing growth in this investment in human capital could account for a large portion of the desired growth rate. In addition, the value of improvements in the quality of economic output unmeasured by GDP, such as advances in the quality of health care and education, could raise reported growth rates by as much as 60 percent. Finally, the government's increasing sensitivity to public opinion and issues of inequality and corruption, combined with improving living conditions, have resulted in a level of popular confidence in the government that makes political instability unlikely.

This paper assesses the effects of education and health on economic growth by partitioning the reasons for cross-country variation in income levels into three components: (i) persistent factors influencing the level of output; (ii) time-varying factors influencing the level of output (e.g., levels of health and education); and (iii) persistent factors influencing a country's rate of technical progress. Persistent factors are ones that remain unchanged (e.g., geographical location) or that change only slightly in the time period under study (e.g., potentially endogenous determinants of technical progress such as a country's orientation toward free trade). Multi-level modeling techniques using maximum likelihood methods were used for estimation. This paper draws on earlier work but extends it to use more recently available data including China. The initial analysis used data on 53 countries over the period 1965–1990 and estimated that education improvements accounted for about 14% of economic growth over this period and health improvements accounted for about 11%. The extended analysis, including China, that this paper reports included data from 86 countries over the period 1960–2000 at 10-year intervals. Findings were broadly similar to the initial analysis, although the magnitude of the estimated effects for education and for health were smaller. Taking our range of models and parameter estimates into account, we feel that education improvements probably accounted for 5%–8% of China's economic growth between 1970 and 2000 and that health improvements accounted for 1%–5%. Our small and imprecise China-specific estimate of health's effect probably results from the atypical pattern in China of successful early efforts to improve health followed by stagnation in health during the later period of rapid growth.

This paper offers an explanation of the quantitative changes in education spending by the framework of demand analysis, including the changes in the ratio of educational funding to GDP in the period 1991–2002. The income effect is estimated mainly by using cross-provincial data, while time series data are used to estimate the price effect. Changes in government and non-government spending through time can be satisfactorily explained by the income and price effects. Demand for education services in the three levels of primary school, secondary school and higher education, and aggregate demand for all education services are investigated. The relation between income inequality and inequality in education opportunities is briefly discussed. Ten important findings are stated.

This paper updates our knowledge of Chinese school enrollment and graduation patterns by analyzing the 2000 Chinese Census. Looking at the school enrollment and attainment snapshot in 2000 and comparing these rates with the enrollment rates in 1990 provides us with important insight into the effect of economic, social and institutional reforms of the 1990s on the generation of students coming through the system in the early post economic reform era. The findings show that substantial progress has been made in China's goal of universal education for all children through the 9th grade.