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ECN501 Education

 Biggest issues with education in developing countries are lack of demand for school, and
bad quality of education with teachers missing work and not teaching
 Some children in developing countries have no motivation to attend school. Thus they
skip school
o Is there demand for education? Even if its free?
 Problem with education in developing countries
o School in most developing countries is free
o High child absentee rate of between 14% and 50%
 Not entirely driven by sickness or needs at home
o Does this reflect failure of a top-down approach in education?
 Yes in part, building schools and training teachers can be pointless if
there is no demand for education
 But: demand for educated workers is high and this does not necessarily
translate to demand for education
o Supply-side vs demand-side issues
 Majority of policy makers believe the problem lies in the supply of
schooling
 SDG: Ensuring inclusive and equitable quality education
 National governments emphasize supply of education
o LOOK AT STATS IN THE SLIDE
 Issues with the supply focus of school
 Enrollment does not equal learning
 Policy assumption: learnings follows enrollment. But this is
incorrect because learning does not follow education
 But there are problems with absenteeism and quality of
education:
o World Bank survey of 6 development countries
 Teachers miss 1 out of 5 days of work
 Techers when they are in school, they are not
teaching
o India’s state of education report
 35% of children in 7-14 age group cannot read a
simple paragraph and 60% cannot read a simple
story
 Maybe the problem is driven by lack of demand for education. How?
 High absenteeism and low quality of education may be driven by
parents not caring
o They may believe that the ROI of education isn’t high
enough
 The outcome of the ROI (Higher wages) should be “marketed” or
communicating the value of education can help increase demand
for education
 If education is another form of investment, what problems can occur?
 Benefits are in the future and for the children (not the parents)
 LOOK AT SLIDE
 An investment in education has large number of uncertainty
 Some governments have made school attendance mandatory for kids
 Some governments have introduced incentives for the parents
 Conditional cash transfers: giving parents money when child
attends school
 Even tho the demand for school is important, supply is also important
 Especially when parents can’t pay for the schools, and increase in
free schools can have a major positive impact
 Man-made poverty
o Man made poverty trap consists of the actual vs perceived value of education
o The actual returns are constant (LOOOK AT PERSEIVED VS ACTUAL GRAPH)
o Some parents think that the value of primary education is low so they may just
send 1 child

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