Effects of Capitation Grant on Educational Outcomes in Ghana

1
Effects of Capitation Grant on Educational
Outcomes in Ghana

• Robert Darko Osei
• Gertrude Owusu
• Freda Asem
• Robert Lawrence Afutu-Kotey
• Institute Of Statistical Social And Economic
  Research (ISSER)
•  University of Ghana
•  
• DRAFT
• January, 2009

2
OUTLINE

• Introduction
• Education Related Interventions
• Approach and Data Sources
• Results
• Trends
• Regression Analysis
• Conclusion

3
Introduction

• Improving the quantity and quality of education
  remains an important goal for many countries
  including Ghana.
• - This is in line with Ghanas
  subscription to the MDGs and
• also its local constitutional
  requirement
• Capitation Grant and School Feeding Programme
  seek to ease the demand-side constraints to
  education.
• Contribution of these education policies to the
  achievements of MDGs is non-trivial

4
Education Policy Framework and Interventions in
Ghana

• The 1992 Constitution of the Republic of Ghana
  under Article 25 (1) guarantees the right of all
  persons to equal educational opportunities.
• The Ghana Poverty Reduction Strategy (GPRS) II
  recognizes education as the key to moving the
  country towards a middle income status by 2015.
• The Free Compulsory Universal Basic Education
  (FCUBE) was implemented in accordance with the
  constitution of Ghana.

5
Education Policy Framework and Interventions in
Ghana

• The FCUBE was not able to make the expected
  impact because of its cost sharing principles.
• The Capitation Grant Scheme (CGS) was therefore
  introduced to increase access to education.
• Under the CGS, every public kindergarten, primary
  school and junior secondary school receives a
  grant of about 3.30 per pupil per year.

6
Approach and Data Sources

• Econometric techniques are used to try and
  establish the effects of the education grants on
  education outcomes.
• Figure 1 Conceptual Relationship between
  Capitation Grant and BECE Results

7
Approach and Data Sources contd

• The statistical model estimated is
• where and
• unobservable district specific
  effect
• the disturbance term
• BECEit BECE Pass Rate for district i at time
  t
• CG Capitation Grant
• PT Pupil/Teacher Ratio
• CS Class Size
• ER Enrollment Ratio
• PTXT Pupil to textbook ratio
• TT Proportion of trained teachers in the
  district
• ?i coefficients

8
Approach and Data Sources contd

• A similar model is also estimated with the gross
  enrolment rates as the dependent variable.
• The model is estimated as a panel over the 138
  districts of Ghana and over the years 2005
  (2005/2006 academic year) to 2007 (2007/2008
  academic year).
• Data for the estimation is obtained from the
  Ghana Education Service of the Ministry of
  Education.

9
Results

• Table 1 Capitation Amount Due
• Source Ghana Education Service

10
Results contd

• Table 2 Capitation Amount Released
• Source Ghana Education Service

11
Results contd

• Table 3 BECE Pass Rate for Males
• Source Ghana Education Service

12
Results contd

• Table 4 BECE Pass Rate for Females
• Source Ghana Education Service

13
Results contd

• Trends from the tables indicate that the
  increased capitation grant over the period from
  2005/2006 to 2007/2008 academic years has been
  associated with increased enrolment rates,
  pupil-teacher ratio and pass rates.
• Regression analysis is also undertaken to
  establish the significance or otherwise of this
  relationship.

14
Regression Results

• Table 5 BECE Pass Rates for Males (2005 2007)

15
Regression Results contd

• Table 6 BECE Pass Rates for Females (2005
  2007)

16
Results contd

• Figure 2 Difference in Pass rate for Males and
  Females Averages over
• 2003/2004 to 2007/2008

17
Regression Results contd

• Table 7 Pooled Model Difference in Male and
  Female Pass rates, 2005 2007

18
Regression Results contd

• Table 8 Pooled Model Gross enrolment Rates,
  2006 2007

19
Conclusion

• There is consistently a deficit in the capitation
  grant amount that is due and what is actually
  released.
• An increase in the Gross Enrolment Ratio at both
  the Primary and JHS levels over study period.
• Capitation grant does not seem to have had any
  impact on the BECE pass rates. This is also true
  for the male-female gap in the BECE pass rates.
• Taking other variables into account, capitation
  grant does not impact significantly on gross
  enrolment rates.