Education Expenditure Research Articles

Making People Employable: Reforming Secondary Education in Pakistan.

Pakistan’s education system has been the focus of various reforms every few years, and a new exercise has been initiated recently through the National Education Policy, 2009. While the problems are generally well documented and stress on universal primary education fully justified, the role of economic relevance of education and training as a factor discouraging completion is not sufficiently emphasised. Studies from developing and developed countries highlight the strong linkage between education and training and employment, and the economic and social returns of employability of trained workers. It is argued that if one or more career based occupational tracks (vocationalisation of upper-secondary education) is offered at the upper secondary level (Class 8-10) as supplements to general education, dropout can be reduced. This will result in increased employability, productivity and competitiveness in the work environment. Co-financing with the private sector of a Rs 48 billion programme for practical on-the-job training is examined in the light of international experiences. JEL classification: J24, O33, H52 Keywords: Human Capital, Skill Bias, Labour Productivity, Education Expenditures

Intergenerational Conflict between Young and Old on Public Education Spending: A Revisit

The intergenerational conflict over public education allocation has remained to be a subject of contentious debate. As such, this study aimed to examine the impact of the elderly population and young population growth that could potentially affect educational spending within the context of Malaysia. This study will employ the Autoregressive Distributed Lag (ARDL) method to determine the intergenerational conflict on public education expenditure in Malaysia. The empirical finding from this study demonstrated the significant influence of both the elderly and young population on public education spending. Any increase in the young population was followed by a proportional increase in education expenditure. Meanwhile, the increase in the elderly population does not appear to reduce public education spending. This implied that there is intergenerational conflict which would put pressure on public education spending. The changes in population structure could bring implications as to how the public expenditure will be allocated. The evidence from this paper will further provide useful insight and policy recommendations to policymakers on how to improve education financing in the future.

Finding flaws in the spatial distribution of health workforce and its influential factors: An empirical analysis based on Chinese provincial panel data, 2010-2019.

The maldistributions of the health workforce showed great inconsistency when singly measured by population quantity or geographic area in China. Meanwhile, earlier studies mainly employed traditional econometric approaches to investigate determinants for the health workforce, which ignored spillover effects of influential factors on neighboring regions. Therefore, we aimed to analyze health workforce allocation in China from demographic and geographic perspectives simultaneously and then explore the spatial pattern and determinants for health workforce allocation taking account of the spillover effect. The health resource density index (HRDI) equals the geometric mean of health resources per 1,000 persons and per square kilometer. First, the HRDI of licensed physicians (HRDI_P) and registered nurses (HRDI_N) was calculated for descriptive analysis. Then, global and local Moran's I indices were employed to explore the spatial features and aggregation clusters of the health workforce. Finally, four types of independent variables were selected: supportive resources (bed density and government health expenditure), healthcare need (proportion of the elderly population), socioeconomic factors (urbanization rate and GDP per capita), and sociocultural factors (education expenditure per pupil and park green area per capita), and then the spatial panel econometric model was used to assess direct associations and intra-region spillover effects between independent variables and HRDI_P and HRDI_N. Global Moran's I index of HRDI_P and HRDI_N increased from 0.2136 (P = 0.0070) to 0.2316 (P = 0.0050), and from 0.1645 (P = 0.0120) to 0.2022 (P = 0.0080), respectively. Local Moran's I suggested spatial aggregation clusters of HRDI_P and HRDI_N. For HRDI_P, bed density, government health expenditure, and GDP had significantly positive associations with local HRDI_P, while the proportion of the elderly population and education expenditure showed opposite spillover effects. More precisely, a 1% increase in the proportion of the elderly population would lead to a 0.4098% increase in HRDI_P of neighboring provinces, while a 1% increase in education expenditure leads to a 0.2688% decline in neighboring HRDI_P. For HRDI_N, the urbanization rate, bed density, and government health expenditure exerted significantly positive impacted local HRDI_N. In addition, the spillover effect was more evident in the urbanization rate, with a 1% increase in the urbanization rate relating to 0.9080% growth of HRDI_N of surrounding provinces. Negative spillover effects of education expenditure, government health expenditure, and elderly proportion were observed in neighboring HRDI_N. There were substantial spatial disparities in health workforce distribution in China; moreover, the health workforce showed positive spatial agglomeration with a strengthening tendency in the last decade. In addition, supportive resources, healthcare needs, and socioeconomic and sociocultural factors would affect the health labor configuration not only in a given province but also in its nearby provinces.

Do positive income shocks benefit children’s education? Evidence from Vietnam

ABSTRACT This study investigates the causal effect of positive income shocks on education in Vietnam using the 1993 and 1998 Vietnam Living Standard Surveys. We measure income shocks by families’ lottery winnings, controlling for lottery purchases. In general, lottery winnings have no significant effect on school enrolment. However, we find a positive and significant effect from lottery winnings on expenditure for children’s education. A 1% increase in lottery winnings increases expenditure on children’s education by 0.12%. Interestingly, we find a stronger effect from lottery winnings on school enrolment and expenditure for education for girls than for boys, helping to decrease gender inequality in education.

One‐click at a time: Empowering mothers for their adolescent children's educational expenditures through social media usage

AbstractMothers play a significant role in deciding their adolescents' educational expenditures. They increasingly rely on the Internet for information search and building online support networks to enhance their confidence. Thus, we use the psychological empowerment theory in this study to examine the association between social media use and educational expenditures. Through two studies, we show how a mother's use of social media (active/passive use) significantly impacts adolescent children's educational expenses via dimensions of psychological empowerment. We further demonstrate that the two dimensions of psychological empowerment differentially drive this relationship: intrapersonal (relying on the self) and Interactional (leveraging the community) empowerment. We discover that active (passive) social media use increases mother' intrapersonal (interactional) empowerment. We also find that cross‐cultural differences play a role in psychological empowerment's effect on educational expenditures, where intrapersonal empowerment is vital in the United States, and interactional empowerment is more relevant in India. Our key contributions to literature are three‐fold: we establish the relationship between a mother's social media use and educational expenditures for their adolescent children, identify predictors of different dimensions of psychological empowerment, and present evidence for cross‐cultural differences in the empowering role of social media.

The Impact of Fiscal Policies on Inclusive Growth in Turkiye

Countries aim to inclusive growth to find a common solution the problems that poverty, income inequality, and unemployment. To boost inclusive growth, policies differ by country but fiscal policies play a crucial role in making growth more inclusive. In this study, five different indices were calculated to measure whether Turkish economic growth was inclusive. After obtaining the result that growth is inclusive, the calculated indices were used as the inclusive growth indicator, and we inquired in which direction the fiscal policies on education, health, social transfers, and taxes affect inclusive growth. Annual data covering the period 2006-2018, and the ARDL method were used to test the relationship between fiscal policies and inclusive growth. We figured out that fiscal policies had different effects on created inclusive growth indices. The results obtained show that public expenditures for health and education have a decreasing effect on inclusive growth indices while social transfers contributed positively to inclusive growth index, two indices were negatively affected by indirect taxes.

Does the government expenditure on education and family income boost educational expansion? Lesson from panel FMOLS

One of the problems of education development in Indonesia is the slow distribution of education, especially in the regions. Understanding the relationship between government spending on education and family income helps improve education equity in the region and formulate appropriate education policies. The study examines the effects of government expenditure in education, family income, poverty, and control variables on the primary, junior, senior secondary of net enrollment ratio and means years of schooling. This study utilized secondary data from regencies/municipalities in Banten Province over the period from 2000 to 2019. The panel FMOLS model found that family income contributed significantly to increasing the education expansion as measured by net enrollment rate in primary, junior, senior high schools and mean years of schooling for all models. Poverty only affected the net enrollment rate for junior high school, senior high school, and mean years of schooling in the long term. However, the findings on the impact of education spending on educational expansion are ambiguous. Furthermore, it depended on the method utilized. This research contributes to providing local government policy input to improve education services through increasing family income, reducing poverty, and providing educational opportunities for the school-age population to obtain equal education services.

General Equilibrium Effects of Investments in Education and Changes in the Labor Force Composition

In this paper, a novel approach to modelling education and human capital formation in a computable general equilibrium model is proposed. Rather than adopting microeconomic-based assumptions of human capital formation, the method is based on an empirical relationship between labor force composition and expenditure on education services. It is found some robust correlation between workers’ shares in the labor force and educational expenditure, in real terms and per capita. To assess the implications of these findings, the impact of an increase in public expenditure devoted to education is simulated in a conventional CGE model for Ethiopia. The simulation results highlight the existence of a multiplicative effect, such that the overall increase in the supply of education services, in the final equilibrium state, is more than three times larger than the initial demand push. This comes associated with a positive supply shock, entailing gains in productivity, income, and welfare, as well as changes in the structure of the economy.

Effect of Direct Costs of Education on Students’ Transition Rate in Public Boarding Secondary Schools in Kenya

Educational resources and facilities cost money. The government and families mostly cover these expenditures. Kenya has spent considerably in education to improve access and participation. Despite these attempts, many students enroll in secondary school in form one, but the numbers drop as they advance to form four. Some are unsuccessful in the four-year course. The study's main goal was to determine the effect of direct educational costs on the transition rates of students in public boarding secondary schools in Uasin Gishu County. This research employed a Convergent Parallel Mixed Methods Design. 34 principals and 3,917 parents were targeted. The sample includes all the 34 principals and 362 parents purposively and Yamane's Simplified formula-selected respectively. Proportional random sampling aided in the choice of parents. Interviews, questionnaires, and archive content analysis collected data. Thematic analysis helped interpret qualitative data while inferential and descriptive statistics interpreted quantitative data. The findings indicated that, in public boarding secondary schools, student transition is highly connected with direct educational expenses. Direct educational expenditures predict public boarding secondary school students’ grade to grade transition rate. They explain 81.8% of the variation with repairs, maintenance and improvement cost accounting for the highest (34.7%) and school meals was responsible for 0.1% of the variance. The study concluded that, direct costs of education affect students’ grade to grade transition. It recommends the government to: review and increase student capitation so as to cover boarding expenses, diversify funding sources to fully cushion the needy students and fully fund school projects and programmes in order to relieve parents/guardians of the cost burden and thus increase student participation in Public Boarding Secondary schools. Keywords: Direct costs of education, Boarding Expenses, Board of Management Salaries and Motivation Fees, Public Boarding secondary Schools, Student Capitation, Students’ Transition Rates

INDEKS PEMBANGUNAN MANUSIA (IPM) DI WILAYAH INDONESIA TIMUR

This research analyze the influence of government spending in the education, health and information technology sectors on the increase in HDI in eastern Indonesia. The research model used is the generalized least square model in the data panel analysis method in eastern Indonesia in 2015-2020. This research study provides results in the ratio of education and health expenditure to PDRB, internet users and PDRB per capita the previous year significantly affect hdi in eastern Indonesia. Research studies explain that PDRB per capita the previous year is the variable that most affects the Human Development Index (HDI).

Household Socio-Demographic Characteristics and Out of Pocket Educational Expenditure in Pakistan

Household Socio-Demographic Characteristics and Out of Pocket Educational Expenditure in Pakistan

სახელმწიფო სასწავლო გრანტის განაწილებისა და გამოყენების ანალიზი

სახელმწიფო სასწავლო გრანტის განაწილებისა და გამოყენების ანალიზი

Immigration vs. poverty: Causal impact on demand for redistribution in a survey experiment

We investigate how demand for both the financing and the provision of redistributive policies is affected by information about immigration and poverty. Information about immigration has a positive impact on desired tax progressivity among low-income respondents and a negative one among higher income earners. Information about poverty has no impact. On the provision side, middle- and high-income respondents increase desired public education expenditure in response to poverty, while low-income respondents reduce desired education spending in response to immigration. These heterogeneities are consistent with protectionist reactions to immigration and poverty.

Public Expenses in Education and Youth Unemployment Rates—A Vector Error Correction Model Approach

In the last decade, much of the attention of public expenditures in education has been focused on improving the offer to the labor market to minimize unemployment rates among young people. Since education directly affects human capital, investing in higher education is considered a benefit to future employment. Therefore, it is the purpose of this paper to investigate whether the government-allocated share of funds to total public expenditures in education affects the unemployment rates of youth in Albania. A quantitative analysis of total public expenses in education and of the country’s economic growth rates is used to investigate their effects on youth unemployment rates in the country. This is followed by another deeper investigation of public expenses in higher education and the country’s economic growth rates analysis on the youth unemployment rates of tertiary education graduates in Albania. Time series data are used in a set of econometric analyses such as the Augmented Dickey–Fuller test, Johansen test, and vector error correction (VEC) model to test for short-run dynamics and long-run causalities among the variables. The study results reveal that there is a short-term causality between the real economic growth rate and the youth unemployment rate, while there is a long-term causality between total public expenditures in education and the youth unemployment rate. If total public expenditures in education increase by 1%, the youth unemployment rate would decrease by 10.81%. Similarly, but not so strong, there is a long-term causality between public expenditures in higher education and the graduated youth unemployment rate. If public expenditures in higher education increase by 1%, the graduated youth unemployment rate would decrease by 5.85%. The speed of adjustment from the short-run to long-run equilibrium, in a quarter time, of the youth unemployment rate is 22%, while of the graduated youth unemployment rate is 53%—showing a faster convergence.

European Union Cohesion Policy: Socio-Economic Vulnerability of the Regions and the COVID-19 Shock

The European Union Cohesion Policy for the period 2021–2027 focuses on five goals to make the European Union smarter, greener, more connected, more social and closer to citizens. However, a macroeconomic index is proposed as the predominant criterion for allocating the Structural Funds among regions. In this paper, we hypothesise that it is possible to take into account new, complementary criteria that better reflect citizens’ quality of life. To that end, we build a composite index of socio-economic vulnerability for the 233 regions. The results show that following our multidimensional approach for allocating the Structural Funds, there are remarkable differences in the maps of priority regions. In addition, the COVID-19 pandemic represents a threat to well-being. Are all regions equally exposed to COVID-19 in terms of their socio-economic vulnerability? To address this issue, we estimate multilevel models which indicate that country characteristics interact with regions’ characteristics to alter patterns of vulnerability. More specifically, increases in government expenditures in education and an improvement in political stability would reduce the regional vulnerability or foster the capacity for resilience, whereas increases in poverty would be associated with greater vulnerability. Likewise, more vulnerable regions would be the most exposed to the negative socio-economic effects of COVID-19. However, it is remarkable that several regions of Sweden and Finland would be among the group of regions whose socio-economic vulnerability would be the most negatively affected.

Intergenerational Linkages, Uncertain Lifetime and Educational and Health Expenditures

Abstract Empirical evidence suggests a positive correlation between health and educational outcomes at the aggregate level. However, both inter and intra-country data suggest that these variables may not always be monotonically increasing in income, pointing towards household income as a possible mitigating factor in the relationship between health and education expenditures and outcomes. We develop an overlapping generations model where agents spend their childhood studying, undertake expenditures to educate their offspring and health expenditures to improve their own longevity in adult age, and spend old age in retirement. Our model is characterised by two equilibria. In one equilibrium, longevity enhancing health expenditure is an inferior good, resulting in agents substituting health expenditures in favour of education expenditures on offspring as their income increases. In the other equilibrium, health expenditure is a normal good, but for incomes below a certain level, an increase in income causes agents to raise health expenditures whilst lowering education expenditures on offspring, while for incomes above this level all expenditures are increasing in income. These results suggest that the relationship between parental longevity and offspring’s human capital depends on income and whether agents consider longevity enhancing health expenditure to be an inferior or normal good. Dynamics of the model show that the economy could either achieve unbounded growth or converge towards a lower bound of income in the long run.

New insights on the contribution of human capital to environmental degradation: Evidence from heterogeneous and cross-correlated countries

Averting environmental degradation and reducing dependence on conventional energy products has come to the center stage of policy debate and academic research. Employing data from 19 OECD countries with advanced expenditures in education we examine the effect of human capital on environmental degradation over the period 1980 to 2019. We employ two alternative measures to capture environmental degradation that is energy consumption and CO2 emissions, and account for human capital by focusing on government expenditure on education to offer a better insight into the role of policy making in averting environmental degradation. The results suggest that human capital enhancement is robustly associated with reductions in energy consumption and CO2 emissions. We additionally provide a comprehensive analysis of the human capital- environmental degradation nexus along the conditional distribution by employing the Machado and Santos Silva (2019) estimation method of quantile regressions with fixed effects. It is shown that human capital is affecting energy consumption and CO2 emissions negatively and statistically significantly across the distribution.

Multiple driving factors and hierarchical management of PM2.5: Evidence from Chinese central urban agglomerations using machine learning model and GTWR

In the fast-developing urban agglomerations (UAs), it is of importance to make accurate judgments concerning the multiple driving factors, and establish hierarchical joint management policy. The impact of weather conditions on daily PM2.5 concentrations in the Chinese central UAs was studied using machine learning algorithm, and the analyzed results were integrated into “the proportion of day numbers with negative weather conditions (PDNW)”. Geographically and temporally weighted regression (GTWR) was used to analyze the driving factors of PM2.5 pollution. Results showed that PM2.5 pollution in central China decreased from north to south, and spatial gathering was becoming increasingly prominent. The PM2.5 predicted values decreased smoothly, with barometric pressure and humidity exerting a large effect, and wind speed and direction having a complex effect. Meteorological conditions had a small effect on the annual scale, but the timing of the effect varied in each city. The distribution of PDNW ranged from 23.3% to 55.6%. The proportion of the tertiary industry's GDP (mean − 0.191), education expenditure (mean − 0.057), and the greening rate of urban built-up areas (mean − 0.295) were found to be negatively correlated with PM2.5 pollution. Transportation, urban greening, innovation, and entrepreneurship were driving factors with obvious spatial differences.

THE EFFICIENCY OF INDIVIDUAL AND PUBLIC SPENDING ON HIGHER EDUCATION IN OECD COUNTRIES AND IN UKRAINE

The article is devoted to the analysis of the efficiency of higher education funding from the perspective of higher education applicants (cost of education) and from the perspective of the state (budget expenditures, investments in preparation of specialists).The article contains the main indicators of socioeconomic development of the OECD countries and Ukraine. The analysis has shown that in Ukraine the amount of higher education expenditures as a percentage of GDP has an average value compared to the OECD countries, while this amount in monetary terms is significantly lower than in other countries.The efficiency of higher education costs for the individual and expenditures for the state in the OECD countries and in Ukraine have been evaluated. The efficiency of individual costs of higher education is calculated using the discounted cash flow method, applied to the cost of education and the difference in wages between qualified and unqualified personnel. The efficiency of public spending on higher education (investment in the training of specialists) is calculated using the discounted cash flow method applied to the share of public spending on higher education and GDP growth generated by labor with better skills. The results of the calculations have shown that the efficiency of state expenditures on higher education is higher than the efficiency of individual costs.

Effect of Female Politicians on Postprimary Education and Intergenerational Education Spending

This paper studies whether exposure to female politicians during adolescence affects postprimary education, including a longer-term intergenerational impact in India. Using close mixed-gender elections won by women as an instrument for the election of female legislators, I find that female politicians increase the likelihood of urban women completing higher secondary schooling. Further, exposure leads rural women to spend more on their children’s education years later, particularly in households with more girls, participate more in household decision making, and exhibit a decline in son preference. Given the pro-male bias in educational expenditures in rural households, the results underscore the importance of exposure to more gender-equal settings during adolescence in mitigating such biases.