Click here for search results
Distributional effects of educational improvements :are we using the wrong model ?
 
Author:Bourguignon, Francois; Rogers, F. Halsey; Collection Title:Policy Research working paper ; no. WPS 4427
Country:World; Date Stored:2007/12/04
Document Date:2007/12/01Document Type:Policy Research Working Paper
SubTopics:Access to Finance; Economic Theory & Research; Debt Markets; Public Sector Expenditure Policy; Language:English
Region:The World RegionReport Number:WPS4427
Volume No:1 of 1  

Summary: Measuring the incidence of public spending in education requires an intergenerational framework distinguishing between what current and future generations - that is, parents and children - give and receive. In standard distributional incidence analysis, households are assumed to receive a benefit equal to what is spent on their children enrolled in the public schooling system and, implicitly, to pay a fee proportional to their income. This paper shows that, in an intergenerational framework, this is equivalent to assuming perfectly altruistic individuals, in the sense of the dynastic model, and perfect capital markets. But in practice, credit markets are imperfect and poor households cannot borrow against the future income of their children. The authors show that under such circumstances, standard distributional incidence analysis may greatly over-estimate the progressivity of public spending in education: educational improvements that are progressive in the long-run steady state may actually be regressive for the current generation of poor adults. This is especially true where service delivery in education is highly inefficient - as it is in poor districts of many developing countries - so that the educational benefits received are relatively low in comparison with the cost of public spending. The results have implications for both policy measures and analytical approaches.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 21 pagesOfficial version*0.20
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/O8YEUCLYW0