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Article
Publication date: 11 May 2020

Asankha Pallegedara and Ajantha Sisira Kumara

Compared to other neighbouring South Asian countries, Sri Lanka performs well in terms of education outcomes. Education is provided by the government for free from primary school…

Abstract

Purpose

Compared to other neighbouring South Asian countries, Sri Lanka performs well in terms of education outcomes. Education is provided by the government for free from primary school level to the first-degree University level, yet households’ private education expenses are steadily increasing over time. Thus, this paper analyses trends and determinants of household private education expenditures using the country-wide micro-data from 1990 to 2013.

Design/methodology/approach

Using Household Income and Expenditure Survey (HIES) 1990/91, 2002 and 2012/13 data along with annual school census data, this paper examines the relationship between private education expenditure patterns and the observed changes of reported both demand-side and supply-side factors. In particular, the present paper analyses determinants of household private education expenditures within the two-part model econometric framework by taking into account location and time fixed-effects.

Findings

The results show that trend of spending privately for education is increasing over time with rising household income. Rural, Tamil and Islamic households and those headed by less-educated members are less likely to spend privately for education. The results also confirm that improved-supply-side factors can significantly lower the household burden arising from out-of-pocket education expenditure.

Research limitations/implications

Unavailability of panel data and missing data on several districts due to security concerns are limitations of the study.

Social implications

The trend of increasing private education expenses has implications on equity concerns of education in Sri Lanka, and it can undermine the purpose of free public education policy.

Originality/value

To our knowledge, this is the first study for Sri Lanka that examines patterns and determinants of private education expenditures using nationwide data for last two decades. This paper applies novel econometric techniques to account for various issues in household survey data analysis.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-07-2019-0445

Details

International Journal of Social Economics, vol. 47 no. 5
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 7 December 2021

Tiloka de Silva

With many countries having reached universal primary and secondary education, parents are increasingly investing in private tutoring as a means of ensuring that their children…

Abstract

With many countries having reached universal primary and secondary education, parents are increasingly investing in private tutoring as a means of ensuring that their children attend the best schools and universities. However, unlike the returns to years of schooling and effects of school quality on student achievement, the effects of spending on private tutoring have received limited attention. This chapter studies the impact of tutoring on higher educational outcomes using exogenous variation in tutoring expenditure caused by the imposition of a curfew on the operating hours of tutoring institutes in Korea. The estimated effects of the curfew highlight the severity of the college entrance rat race, with a 10 p.m. curfew constraining tutoring expenditure and increasing sleeping hours. I find diminishing marginal effects of tutoring on college entrance and positive effects on degree completion while the impact on college major followed varies across disciplines.

Book part
Publication date: 30 September 2020

Dmitry V. Didenko

This chapter sheds light on long-term trends in the level and structural dynamics of investments in Russian human capital formation from government, corporations, and households…

Abstract

This chapter sheds light on long-term trends in the level and structural dynamics of investments in Russian human capital formation from government, corporations, and households. It contributes to the literature discussing theoretical issues and empirical patterns of modernization, human development, as well as the transition from a centralized to a market economy. The empirical evidence is based on extensive utilization of the dataset introduced in Didenko, Földvári, and Van Leeuwen (2013). Our findings provide support for the view expressed in Gerschenkron (1962) that in late industrializers the government tended to substitute for the lack of capital and infrastructure by direct interventions. At least from the late nineteenth century the central government's and local authorities' budgets played the primary role. However, the role of nongovernment sources increased significantly since the mid-1950s, i.e., after the crucial breakthrough to an industrial society had been made. During the transition to a market economy in the 1990s and 2000s the level of government contributions decreased somewhat in education, and more significantly in research and development, but its share in overall financing expanded. In education corporate funds were largely replaced by those from households. In health care, Russia is characterized by an increasing share of out-of-pocket payments of households and slow development of organized forms of nonstate financing. These trends reinforce obstacles to Russia's future transition, as regards institutional change toward a more significant and sound role of the corporate sector in such branches as R&D, health care, and, to a lesser extent, education.

Details

Research in Economic History
Type: Book
ISBN: 978-1-83909-179-7

Keywords

Article
Publication date: 17 August 2021

Sriparna Goswami and Bidisha Chakraborty

This paper aims to understand the differing impacts of wealth distribution on human capital accumulation and skilled-unskilled labour generation under three educational paradigms…

Abstract

Purpose

This paper aims to understand the differing impacts of wealth distribution on human capital accumulation and skilled-unskilled labour generation under three educational paradigms as follows: private, public and a system of mixed education.

Design/methodology/approach

The authors use an overlapping generations model.

Findings

The wealth dynamics show that both in the private education system and public education system, there are two possible outcomes- stagnation and steady growth depending on the efficiency of the education system, skill premium and other parameters. The choice of the education system through voting is discussed. It is found that skilled workers would always vote for private education whilst unskilled workers vote for private education if public education expenditure of the economy is low.

Research limitations/implications

The study is subject to several limitations. This paper considers the rate of interest and wage rate to be exogenously given, and thus ignores the general equilibrium effects. The authors do not consider the labour-leisure choice. The introduction of labour leisure choice in the model would alter many of the results. The authors do not consider heterogeneous ability across individuals. The analysis of the differential efficiency of the different education systems needs further, rigorous research. Also, this paper does not consider other occupations such as entrepreneurship and self-employment. This paper considers the labour demand function to be perfectly elastic, and hence, does not consider any demand constraint. What happens if bequests are taxed? What happens if parents are not altruistic? These questions may be addressed in future research.

Social implications

If the proportion of tax paying skilled labour is low in any country, pure public education may not be able to generate sustained human capital growth. For countries with a sufficiently large proportion of skilled labour, the public education system would be successful. On the other hand, if skill premium is low or the education system is poorly managed private education system may fail too.

Originality/value

Whilst investigating the effects of public vs private education on growth and development in the presence of unequal wealth distribution, The authors have tried to address a few questions. First, why the public education system has been successful in skill accumulation in developed countries whilst it has failed to do so in less developed countries? Second, why do some countries with mostly privately run educational institutions perform much better in human capital production whilst others do not? Third, in an economy with unequal wealth distribution, what are the factors that result in public or private education as a voting equilibrium outcome?

Details

Indian Growth and Development Review, vol. 14 no. 3
Type: Research Article
ISSN: 1753-8254

Keywords

Abstract

Details

Explaining Growth in the Middle East
Type: Book
ISBN: 978-0-44452-240-5

Article
Publication date: 26 September 2008

Merwan Engineer, Ian King and Nilanjana Roy

The human development index (HDI) and gender‐related development index (GDI) have become accepted as leading measures for ranking human well being in different countries. The…

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Abstract

Purpose

The human development index (HDI) and gender‐related development index (GDI) have become accepted as leading measures for ranking human well being in different countries. The purpose of this paper is to identify the planning policies that improve these indices and to also suggest modifications to the indices that yield more sensible policies.Design/methodology/approach – This paper solves the first‐best welfare problem in which the planner maximizes a development index subject to resource constraints.Findings – Planning strategies that maximize the HDI tend towards minimizing consumption and maximizing expenditures on education and health. Interestingly, such strategies also tend towards equitable allocations, even though inequality aversion is not modelled in the HDI. The paper shows that the GDI generates optimal plans with similar properties, and determine when the GDI and HDI generate consistent optimal plans. A problematic feature of the optimal plans is that the income component in the HDI (or GDI) does not play its intended role of securing resources for a decent standard of living. Rather, it acts to distort the allocation between health and education expenditure. The paper argues that it is better to drop income from the index. Alternatively, the paper considers net income, income net of education and health expenditures, as indicating capabilities not already reflected in the index. Finally, it compares how the modified indices and the HDI rank countries.Originality/value – The paper is believed to be the first to integrate development indices into national development planning.

Details

Indian Growth and Development Review, vol. 1 no. 2
Type: Research Article
ISSN: 1753-8254

Keywords

Article
Publication date: 3 October 2012

Seema Joshi

– The purpose of this paper is to identify the role of universities in the service sector innovation system of India.

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Abstract

Purpose

The purpose of this paper is to identify the role of universities in the service sector innovation system of India.

Design/methodology/approach

Use was made of secondary sources of data such as various reports, books and journals, to gather information on what constitutes the national innovation system (NIS) of a country. An attempt was made to assess the performance of India ' s innovation system, which comprises investment, infrastructure, knowledge and skill generation, and relations and linkages. The author made broad use of this conceptual framework to make an assessment of the performance of the changing service sector innovation system in India. To examine the performance of India ' s NIS, three elements were focused on: R & D, FDI in services, and status of higher education sector.

Findings

The paper concludes that India has a well-functioning service sector innovation system yet much needs to be done if India wants to keep alive her ambition of becoming a knowledge powerhouse or innovation superpower. Moreover, the private sector can play an important role in the improvement of quality of education, as has been revealed by the example of NASSCOM.

Originality/value

While there is some research on the NIS of India, not much has been written about the service sector innovation system of India. The paper fills this gap in the current literature to some extent.

Details

World Journal of Science, Technology and Sustainable Development, vol. 9 no. 4
Type: Research Article
ISSN: 2042-5945

Keywords

Book part
Publication date: 17 December 2003

Hyunjoon Park

During the past few decades, South Korea has experienced a remarkable educational expansion at its secondary and tertiary levels as well as at the primary level, resulting in…

Abstract

During the past few decades, South Korea has experienced a remarkable educational expansion at its secondary and tertiary levels as well as at the primary level, resulting in extraordinary variation between the educational attainment of recent and older cohorts. Using 1990 data from the Social Inequality Study in Korea, the study examines trends in the influence of social background on educational attainment across three male cohorts born between 1921 and 1970. Although in general the impacts of social origin have changed little at the secondary levels of education, there is a significant reduction in the effect of father’s occupation on the odds of completing middle school for the youngest cohort. From a multinomial model of transitions to each type of tertiary education, it is found that family background has a stronger effect in the transition from high school to four-year university than to junior college. Interestingly, there has been an increase across cohorts in the influence of father’s education on the likelihood of entering a university, while such a pattern is not observed for the transition to junior college.

Details

Inequality Across Societies: Familes, Schools and Persisting Stratification
Type: Book
ISBN: 978-0-76231-061-6

Book part
Publication date: 19 November 2013

Christopher Lubienski and Jin Lee

This analysis addresses the question of how the goals motivating policies around markets for supplementary education are supported and reflected (or not) in the subsequent…

Abstract

Purpose

This analysis addresses the question of how the goals motivating policies around markets for supplementary education are supported and reflected (or not) in the subsequent structures for those markets.

Design/methodology/approach

Drawing on policy documents and empirical research on these policies, we examine the policy contexts and market structures the low-intensity form of supplementary education (SE) seen in the United States relative to the high-intensity case of Korea – specifically, the supplementary educational services (SESs) of the No Child Left Behind Act of 2001 and the After School Programs (ASPs) in Korea, respectively.

Findings

The analysis finds that Korea is using school-based SE programs as an alternative to existing SE markets in order to mediate perceived free-market excesses, while the United States is subsidizing SE markets to address the negative consequences of inequitable schooling. Yet, even in different contexts and purposes, policymakers in both countries see a value to supplementary education as part of their overall education strategy, despite a lack of evidence on the effectiveness of these approaches. This commonality is reflective of the larger neoliberal approach, evident around the globe, of using market forces such as competitive incentives and parental choice to drive policy toward social objectives.

Originality/value

The significance of this analysis is the insight that these policy approaches, while different in context and policy specifics, represent an overall blurring of traditional distinctions between public and private organizations.

Details

Out of the Shadows: The Global Intensification of Supplementary Education
Type: Book
ISBN: 978-1-78190-816-7

Keywords

Book part
Publication date: 4 December 2020

Eva Erjavec

Education promotes the development of human capital, which has long been studied in the literature as a key determinant of economic development. Education is today listed as key…

Abstract

Education promotes the development of human capital, which has long been studied in the literature as a key determinant of economic development. Education is today listed as key part of public intangible capital and is further studied in the context of new growth determinants. This chapter extends the analysis of the contribution of education as a public intangible capital to the economic growth. It shows that education in fact promotes all three components of sustainable development. First, education promotes economic development and higher value-added creation, second, it is related to better and more job opportunities, higher wages, promotes health, etc., and consequently contributes to the achievement of the “social” dimension of sustainable development. Last, more educated population is also more prone toward supporting environmental goals. Therefore, investment into education is very important from the perspective of sustainable development. With offering a range of opportunities to individuals, the role of public education and policy-making in the field is essential to promote sustainable development from this perspective.

Details

Challenges on the Path Toward Sustainability in Europe
Type: Book
ISBN: 978-1-80043-972-6

Keywords

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