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20ECC119 - Development Economics > Topic 5 - Human Capital and Child Labour > Flashcards

Topic 5 - Human Capital and Child Labour Flashcards

1
Q

What are the core values of economic development?

A
  1. Sustenance: To Be Able to Meet Basic Needs
  2. Self-Esteem: To Be a Person
  3. Freedom from Servitude: To Be Able to Choose.
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2
Q

What are the Indicators and Status of Education?

A
  1. Gross Enrollment Rate (GER)
  2. Net Enrollment Rate (NER)
  3. Out of school (OOS) of primary school age
  4. Grade-completion rate
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3
Q

What is the Gross Enrollment Rate (GER)?

A

Ratio of no of kids enrolled in given school year (primary, secondary, tertiary) to no of kids in ages group that corresponds to that level of schooling

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4
Q

What is the Net Enrollment Rate (NER)?

A

% of kids in given age group that are enrolled in a school category (primary,secondary,tertiary)

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5
Q

What is the Out of School of Primary-school age(OOR)?

A

The number of children of primary-school age
not in school

largest no is in Sub-Saharan Africa, 33 mil kids or 56% of OOS

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6
Q

What is the grade completion rate?

A

Share of kids who actually complete certain grade lvl

  • Primary completion rate in 2008: 64% in Sub Saharan Africa 79% in Asia and 99% in E.Asia
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7
Q

What determines the level of schooling?

A
  1. Education and Econ Growth
    lnYit = α 𝛽𝑆it + 𝜀it
    𝛽 = 0.04
  2. Supply Side Factors:
    Quantity and Quality of Education
    Duflo identifying how distance from school,contact hrs etc. affected
  3. Demand side factors
    Magruder (2009) - Factors influencing demand for schooling -> majority was incomes (affordability of school)
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8
Q

What are the differing demand side factors?

A
  1. Intrinsic Value of Schooling (i)
  2. Expected econ return from schooling (W1 -W0)
  3. Direct costs of schooling (c)
  4. Indirect Costs of schooling, inclu Opp Costs
  5. Time
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9
Q

How do we calculate the schooling decision diagram?

A

NPV = Sigma Yt - Xt - Ct / (1+R)t

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10
Q

What does Heckman’s analysis into returns on investment for education display?

A
  • Private benefits much more over time than social
  • emphasis on primary school education
  • All 3 sectors of education needed in an economy
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11
Q

What does Psacharopoulos’ analysis into education show?

A

University earnings increase tremendously over time compared to those with secondary

SEE GRAPH IN SLIDES

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12
Q

What do we see under the private v social benefits and costs of education?

A

Uni should be private

Govt to focus on primary and secondary

SEE GRAPHS IN NOTES

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13
Q

What is the gini coefficient for education in India and S. Korea?

A

Education Gini in India: 0.69

Education Gini in S.Korea: 0.22

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14
Q

What does the education formula display about the quality of teaching?

A
  • 20% of the time teachers ghost the class
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15
Q

What are some of the development issues when it comes to child labour

A
  1. deprives children of their childhood.
  2. adversely affects their physical, mental, and cognitive development (especially in their formative years)

Fundamentally reflection of poverty and weak econ and social institutions

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16
Q

What is the multiple equilibria approach to child labour?

A
  1. Government intervention may be necessary to move to a ‘better’ equilibrium

2, Sometimes this shift can be self-enforcing, so active intervention is only needed at first.

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17
Q

What are the assumptions of the multiple equilibria model?

A

Luxury Axiom: A household with sufficiently high income would not send its children to work
Substitution Axiom: Adult and child labour are substitutes (perfect substitutes in this model)

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18
Q

What does the multiple equiilbria graph showus?

A

SEE GRAPH AND EXPLANATION OF GRAPH IN NOTES

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19
Q

What are some of the determinants of Child Labour?

A
  1. poor access to credit,
  2. international trade which targets low wage labour sources,
    3 social norms,
  3. high fertility and mortality rates,
  4. labour market imperfections, and
  5. return on human capital and schooling (i.e., cost-benefit analysis explains educational
    choices)
20
Q

What are some policy options to address child labour?

A
  1. Legislation – banning child labour
  2. Tackle root of the problem – eliminate poverty, and low adult wages. The non-poor will not send their children into child labour (a traditional World Bank approach)
  3. Strategies to get more children into school
  4. Accept child labour as inevitable and regulate it (to prevent abuse and find common ground)
    Part time work + part time school (UNICEF approach);
  5. Activist approach: trade sanctions.
    Concerns: could backfire when children shift to informal sector; and if modern sector growth slows
21
Q

What is some gender discrimination facts when it comes to Education and Health?

A

->Young females receive less education than young males in nearly every low and lower-middle income developing country

Closing the educational gender gap is important for several reasons

22
Q

What are some major neglected tropical diseases?

A

Roundworm - 820 mil prevalance

Whip worm and Hookworm = 465 mil and 439 mil

23
Q

How is the health standard in nations calculated?

A

With QALYs (Quality Adjusted Life Years) or Disability Adjusted Life Years (DALYs)

24
Q

What do QALYs and DALYs measure?

A
  1. QALYs are a measure of years lived in perfect health gained
  2. DALYs are a measure of years in perfect health lost.
25
Q

What are the different indicators to status of health?

A
  1. Life Expectancy at birth
  2. Infant mortality rate
  3. Disease Burden
26
Q

What is the state of Good Health?

A

A state of complete Physical, Mental and Social wellbeing and not merely the absence of disease and infirmity (World Health Organization, 2015)

27
Q

What is the Disease Burden?

A

Attempts to measure the health status of a population by combining life expectancy with quality of life.
It measures years of “good” life lost due to both premature death and disability.

28
Q

How do you calculate the Health-adjusted life expectancy (HALE)?

A

The ideal life expectancy minus the years lost due to premature death and disability

29
Q

How is each disability measured?

A

Each disability is given a score that curtails years lived into a disability-adjusted life year (DALY).

The global burden of disease in a population is the sum of the DALYs.

SEE GRAPH IN NOTES

30
Q

What exactly is the HALE?

A

->Measure of population health that takes into account mortality and
morbidity.
->Adjusts overall life expectancy by the amount of time lived in less-than-perfect health.
->Calculated by subtracting from the life expectancy a figure which is the number of years lived with disability multiplied by weighting to represent effect of a disability.

e.g. A = years lived healthily
B = years lived with disability
A + (1-δ)B = healthy life expectancy, where δ is a weighting to reflect disability level OR Life Exp. – δB - YLL

31
Q

What exactly is the QALY?

A

the arithmetic product of life expectancy combined with a measure of the quality of life-years remaining

32
Q

How do you calculate the QALY?

A

the time a person is likely to spend in a particular state of health is weighted
by a utility score from standard valuations.

In such valuation systems, ‘1’ equates perfect health and ‘0’ equates death.

33
Q

What are the issues behind the QALY and HALE?

A

Moral questions about who defines and measures disability level and how they do it

34
Q

In terms of the disease burden what is the difference we see between developed and developing nations?

A
  1. Developing world: 2/3 of the DALYs lost are due to premature deaths; the other 1/3 due to disabilities.
  2. Richer countries: 1/3 of the DALYs lost are due to premature deaths; the other 2/3 due to disabilities.

Communicable diseases approx. 33-36% of deaths in poor countries and only 3-7% in richer ones;

35
Q

What are some facts about HIV/AIDs:

A
  1. 36.7 million people living with HIV/AIDS worldwide in 2015
  2. Mortality: 1.1 million people died of AIDS-related illnesses worldwide in 2015
  3. Sub-Saharan Africa remains most severely affected, with nearly 1 in every 25 adults (4.4%) living with HIV
36
Q

What are some facts about Malaria?

A

214 million cases 2015 worldwide
37% global decrease in malaria incidence 2000-15
- Number of deaths globally 839k to 438k in 2015

37
Q

What are some health policies toward HIV/AIDS,Malaria and other neglected tropical diseases?

A 
1. HIV/AIDS
Education
HIV testing and counselling
2. Malaria
 WHO Roll-Back Malaria Partnership
 Bill and Melinda Gates Foundation
3. Parasitic Worms and Other “Neglected Tropical Diseases”.
Nepal’s pre-school worm control programme takes place every six months and is delivered by
nearly 50,000 female village volunteers.
38
Q

How can greater health capital improve the returns to investments in education?

A
  1. School attendance = f (Health, ….)
  2. Effective learning = f (Health, …)
    3, A longer life (i.e., Health) raises the Rate of Return to education
  3. Healthier people have lower depreciation of education capital.
39
Q

How can greater education capital improve the returns to investment in health?

A
  1. Public health programs need knowledge learned in school;
  2. Basic hygiene and sanitation may be taught in school;
    3, Education needed in training of health personnel.
40
Q

How can we improve health: Supply Side Factors (PT 1)

A
  1. Under supply and low quality health services can be improved by:
    - Quality and Quantity monitoring
    - Lvls of pay and incentives to resist brain drain
  2. Constraints on development of pharma for LDC specific diseases can be improved by:
    - Small market
    - Lack of IP rights on pharma
    - Govt enforcement of IP rights
    - Mkt segmentation
41
Q

How can we improve health: Supply Side Factors (PT 2)

A
  1. Research on LDC diseases can be encouraged by:
    - Availability of research grants
    - Donor money
    - Prizes can be offered for medical innovations (Stiglitz)
42
Q

How can we improve health: Supply Side Factors (PT 3)

A
  1. User fees, privatisation
    - Introduce price to make mkt work and create incentives on provider side
  2. Pay for performance incentives
    e. g. 2005 Ministry of Health in Rwanda P4P scheme
43
Q

How can we improve health via Demand Side Factors (PT 1)

A
  1. Low income effects:
    Household incomes and Mothers’ earning effect
  2. Puzzle of low effective mkt demand:
    2/3 of child deaths could be avoided with increased use of simple practices such as
    vaccination, point-of-use water treatment like water filters, insecticide-treated bed nets, iron fortification, and de-worming (Dupas, 2014)
44
Q

How can we improve health via Demand Side Factors (PT 2)

A 
3. Price Subsidies:
Justification:
- Strong positive externalities to reducing communicable diseases among poor
- Experiential goods
- Reduces over-exclusion

Against:
- Induces perverse behaviour

45
Q

How can we improve health via Demand Side Factors (PT 3)

A
  1. Eradication Campaigns v Individual Choice
  2. Changing behaviour (Nudge Theory)
    Gong (2015) found in Tanzania, people who discover they HIV positive, may engage in more risky sex
46
Q

How can we improve health via Demand Side Factors (Subsidies)?

A
  1. How to use subsidies:
    - Importance of targeting
    - Not create bad habits
    - Not displace suppliers in private sector
47
Q

Improving health and education best approach?

A

Some research findings,

  • Increasing income alone has shortcomings
  • The Human Capital Approach

20ECC119 - Development Economics (12 decks)

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