Theme 2

1
Theme 2

• Economic and labour market outcomes

2

• Theme 2 qual work in India/ Ghana/ Pakistan
• Theme 2 quant work has utilised Ghana/ Pakistan
  RECOUP data and other data
• Work on Indian RECOUP data likely to begin shortly

3
International pattern of economic returns to
education

• Chris Colclough, Geeta Kingdon and Harry
  Patrinos. The Pattern of Returns to Education
  and its Implications Draft Policy briefing,
  Sept. 2008.
• The pattern of economic RORE can help us to
  understand the poverty-reducing potential of
  different levels of education.
• Commonly believed that labour market returns to
  education are highest for the primary level of
  education and lower for subsequent levels.
• Paper presents evidence suggesting the pattern is
  changing. It explores implications for both
  education policy and labour market policy
• Kingdon, G., H. Patrinos, C. Sakellariou and M.
  Soderbom. International Pattern of Returns to
  Education, mimeo, 2008.
• Using a common specification of the wage
  equation, this work examines the shape of edu-Y
  relation in 11 countries (4 African, 2 South
  Asian and 5 S.E. Asian)
• Finds pronounced convexity return to education
  is greater at higher levels of educ

4
Table 3 Estimates of Mincerian returns to
different levels of education, using recent data
Primary Middle or Lower secondary Secondary or Higher secondary Higher
Ghana (1998) 8.9 8.5 8.8 16.9
Kenya (2000) 11.6 --- 16.4 25.5
Tanzania (2001) 10.2 --- 12.0 27.3
South Africa (2003) 12.0 21.6 24.4 34.1

India (2004) 0.0 7.2 12.6 15.6
Pakistan (2001) 6.0 6.1 13.2 15.3

Indonesia (2000) 5.0 8.4 13.7 17.2
China (2004) 0.0 7.8 7.5 10.1
Philippines (1999) 8.4 7.8 8.4 21.6
Thailand (2002) 13.5 13.4 10.6 23.1
Cambodia (2004) 5.3 5.6 7.7 11.1
Average 7.4 9.6 12.3 19.8
Source Kingdon, Patrinos, Sakellariou and
Soderbom (2008). Note and represent
statistical significance at the 10 and 5 levels
respectively. Returns estimates reported for male
waged workers (of all working ages, not just
25-34 year olds, as in Table 2 above).
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Ghana examining the return to apprenticeship

• Key output Does Doing an Apprenticeship Pay
  Off? Evidence from Ghana Revised version under
  review at EDCC. Monk, Sandefur, Teal
• RECOUP Ghana Household Survey (2006) used.
• Apprenticeship is by far the most important
  institution providing training and is undertaken
  primarily by those with JHS or lower levels of
  education.
• Summary statistics indicate that those who have
  done an apprenticeship earn much less than those
  who have not. This suggests that endogenous
  selection into the apprenticeship system is quite
  important.
• For currently employed people who did
  apprenticeships but have no formal education,
  training increases earnings by 50.
• Returns to apprenticeship decline with education.
  Further analysis shows that the investment in
  apprenticeship yields a ROR in line with other
  educational investments
• Significance of the paper to show that
  apprenticeship training benefits mainly those
  with no formal education

6
Ghana do economic outcomes of health differ by
education level?

• Monk, C. and F. Teal. Health and Labour Market
  outcomes in urban Ghana. Mimeo, Aug. 2008.
• Examines relation between health and labour
  market outcomes
• Uses short-term measure (days of illness) and
  long-term measure (height)
• Health and labour market outcomes strongly
  related
• Illness affects labour supply decision, also
  earnings height affects earnings
• Impact on of illness on earnings is larger for
  the more educated
• Significance to measure the extent to which
  education influences the impact of health on
  labour market outcomes

7
China role of education in persistence of and
in escape from poverty

• Output Education and the Poverty Trap in Rural
  China forthcoming in Oxford Development
  Studies, John Knight
• Addresses the central question of the RPC
• Views the relationships between education and
  income as forming a system that can generate a
  poverty trap
• Using data from rural China, examines
• the determinants of enrolment (whether poverty
  has an adverse effect on both qual/ quan of
  education) - so contributing to a poverty trap.
• whether the returns to education vary according
  to household and community income thereby also
  contributing to a poverty trap.
• The paper asks whether, and how, education can
  break this vicious circle of poverty, with
  implications for policy.

8
India qualitative study on skills training and
livelihood outcomes

• Output Education, skills training and livelihood
  outcomes for poor communities (mimeo, 2008)
• The labour market outcomes of skills training
  were explored through interviews with drivers,
  tailors and electricians
• Also interviewed those with govt technical
  training in the it is
• Access to training is difficult, even to training
  of the kind that does not on its own result in
  release from poverty
• Even those with govt ITI training, now affected
  by casualisation of labour and do not find
  permanent employment
• This study helps elucidate how skill-development
  occurs amongst the poor, and will be of value for
  strategies to enhance its benefits

9
Pakistan Returns to schooling, ability and
skills

• Aslam, Bari and Kingdon Returns to Schooling,
  Ability and Skills in Pakistan.
• RECOUP-PAKISTAN 2007 data investigates outcomes
  of education for wage earners.
• Analyses relationship between schooling,
  cognitive skills and ability on the one hand, and
  economic activity, occupation, sectoral choice
  and earnings, on the other.
• Imp question what does the coefficient on
  schooling in wage functions measure?
• HCT holds the coefficient measures a return to
  higher productivity,
• credentialist view -it represents a return to
  acquired qualifications and credentials
• signalling hypothesis suggests it captures a
  return to native ability.
• This paper seeks to adjudicate between these
  theories has the right data
• There is no evidence of signalling. There is
  profound convexity in the edu-Y relation
• Much of the direct effect of cognitive skills
  disappears after conditioning on schooling,
  hinting at credentialism.
• However, much of the effect of schooling operates
  through positive behavioural traits possessed by
  individuals when aged 15. Thus, instead of
  credentialism it could be reflecting a return to
  non-cognitive traits valued (and remunerated) in
  labour market

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Pakistan Is education a path to gender
equality in the labour market?

• Aslam, Kingdon, Soderbom forthcoming in World
  Bank volume.
• Asks whether/ to what extent education is a path
  to gender equality in labour market
• Labour market benefits of education accrue both
• from education/skills promoting a persons entry
  into the more lucrative occupations, and
• by raising earnings within any given occupation.
• Find that womens propensity to participate in
  paid employment does not rise with education upto
  about 10 years of education. Beyond 10 years of
  education, womens chances of entry into wage
  employment improve strongly with each extra year
  of S.
• However, only 10 of women have completed 10
  years of education or more. Thus, education is a
  means of gender equality in occupational
  attainment only for a very restricted number of
  women
• More positively, within all occupations, RORE is
  much higher for women than men. So the gender gap
  in earnings falls dramatically with education.
• Thus, while education is a path to gender
  equality in that it strongly reduces the earnings
  gap between employed men and women, this positive
  assessment has to be moderated by the fact that
  up to 10 years of education, education is not a
  sufficient counter to culture, attitudes and
  division-of-labour norms to encourage female LFP.

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Looking ahead

• hh datasets are unique
• appear under-utilised
• Quantitative agenda using existing data
• return to schooling, skills, ability
• return to quality of schooling
• return to knowing English
• India work shortly starting on these
• Panel data need to be generated

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Papers on economic outcomes of education

• Monk, Courtney, Justin Sandefur and Francis Teal.
  Does Doing an Apprenticeship Pay Off? Evidence
  from Ghana., mimeo, CSAE, Nov. 2007 (revised,
  review EDCC)
• Francis Teal. Education, Incomes and Job
  opportunities in Africa From investment to
  jobs, mimeo, Sept. 2008. (a version of this is
  forthcoming in a SA policy journal)
• Knight, J. 'Education and the poverty trap in
  rural Setting the trap' forthcoming in Oxford
  Development Studies. effect of income/poverty on
  education.
• Knight, J. 'Education and the poverty trap in
  rural Closing the trap', forthcoming in Oxford
  Development Studies. effect of education on
  income/poverty.
• Aslam, M., Bari, F. and G. Kingdon. Returns to
  Schooling, Ability and Skills, mimeo, CSAE,
  January 2008. (under review for RECOUP working
  paper)
• Aslam, M., G. Kingdon, M. Söderbom (2008) Is
  Education a Path to Gender Equality in the Labour
  Market? Evidence from Pakistan, forthcoming in
  World Bank volume Education A Critical Path to
  Gender Equality and Empowerment.
• Kingdon, G. and N. Theopold Do Returns to
  Education Matter to Schooling Participation?
  Evidence from India, Forthcoming in Education
  Economics.

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Other papers

• On health and related outcomes
• Aslam, M., Kingdon, G. and S. Malik, Maternal
  Education and Child Health Understanding the
  Pathways in Pakistan, mimeo, CSAE, May 2008.
• Irving, M. and G. Kingdon. Gender patterns in
  household health expenditure allocation A study
  of South Africa, mimeo, Institute of Education,
  University of London, Mar. 2008.
• Monk, C. and F. Teal. Health and job quality in
  Ghana Is self-employment bad for your health?
  mimeo, Jan. 2008.
• Monk, C. and F. Teal. Health and Labour Market
  outcomes in urban Ghana.
• On PPPs in education
• Kingdon. G. Private and Public Schooling The
  Indian Experience, Forthcoming Chakrabarti, R.
  and P. Peterson (eds) School Choice
  International, MIT Press
• On political economy of education
• Kingdon, G. M. Muzammil. Teacher politics,
  teacher unions and the school governance
  environment in India A study of Uttar Pradesh.
  Mimeo, June, 2008

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• On student learning outcomes
• Aslam, M. and G. Kingdon. What can Teachers do
  to Raise Pupil Achievement?, RECOUP Working
  Paper 19, University of Cambridge, 2008.
• Altinok, N. and G. Kingdon. New Evidence on
  Class Size Effects A Pupil Fixed Effects
  Approach, mimeo, Institute of Education, May
  2008.
• Kingdon, G. and F. Teal. Teacher unions, teacher
  pay and student achievement in India, mimeo,
  Institute of Education, September 2008. Under
  review at JHR
• Kingdon, G. and F. Teal. Does Performance
  Related Pay for Teachers Improve Student
  Achievement? Some Evidence from India, Economics
  of Education Review. 26, No. 4 473-86. August
  2007.
• Gender and education papers
• Aslam, M. and G. Kingdon. Gender and Household
  Education Expenditure in Pakistan Engel Curve
  Evidence, Forthcoming in Applied Economics,
  2008.
• Aslam, M. Education Gender Gaps in Pakistan Is
  the Labour Market to Blame?, Forthcoming in
  Economic Development and Cultural Change.

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• Miscellaneous education papers
• Kingdon, G. The Progress of School Education in
  India, Oxford Review of
  Economic Policy, 23, No. 2 168-195, Summer 2007.
• Kingdon, G. Economics of Education, in G.
  McCulloch and D. Crook (eds.) International
  Encyclopaedia of Education, Routledge, London,
  2008.
• Kingdon, G. and R. Cassen. Race and Low
  Achievement in English Schools at Key Stage 4,
  mimeo, Institute of Education, April 2008.
  Under review, BERJ.
• Kingdon, G. and R. Cassen. School Quality and
  the Incidence of Low Achievement at Key Stage 4,
  mimeo, Institute of Education, Nov. 2007.