Topic 5 - Human Capital and Child Labour Flashcards
What are the core values of economic development?
- Sustenance: To Be Able to Meet Basic Needs
- Self-Esteem: To Be a Person
- Freedom from Servitude: To Be Able to Choose.
What are the Indicators and Status of Education?
- Gross Enrollment Rate (GER)
- Net Enrollment Rate (NER)
- Out of school (OOS) of primary school age
- Grade-completion rate
What is the Gross Enrollment Rate (GER)?
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
What is the Net Enrollment Rate (NER)?
% of kids in given age group that are enrolled in a school category (primary,secondary,tertiary)
What is the Out of School of Primary-school age(OOR)?
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
What is the grade completion rate?
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
What determines the level of schooling?
- Education and Econ Growth
lnYit = α 𝛽𝑆it + 𝜀it
𝛽 = 0.04
- Supply Side Factors:
Quantity and Quality of Education
Duflo identifying how distance from school,contact hrs etc. affected
- Demand side factors
Magruder (2009) - Factors influencing demand for schooling -> majority was incomes (affordability of school)
What are the differing demand side factors?
- Intrinsic Value of Schooling (i)
- Expected econ return from schooling (W1 -W0)
- Direct costs of schooling (c)
- Indirect Costs of schooling, inclu Opp Costs
How do we calculate the schooling decision diagram?
NPV = Sigma Yt - Xt - Ct / (1+R)t
What does Heckman’s analysis into returns on investment for education display?
- Private benefits much more over time than social
- emphasis on primary school education
- All 3 sectors of education needed in an economy
What does Psacharopoulos’ analysis into education show?
University earnings increase tremendously over time compared to those with secondary
SEE GRAPH IN SLIDES
What do we see under the private v social benefits and costs of education?
Uni should be private
Govt to focus on primary and secondary
SEE GRAPHS IN NOTES
What is the gini coefficient for education in India and S. Korea?
Education Gini in India: 0.69
Education Gini in S.Korea: 0.22
What does the education formula display about the quality of teaching?
- 20% of the time teachers ghost the class
What are some of the development issues when it comes to child labour
- deprives children of their childhood.
- adversely affects their physical, mental, and cognitive development (especially in their formative years)
Fundamentally reflection of poverty and weak econ and social institutions
What is the multiple equilibria approach to child labour?
- 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.
What are the assumptions of the multiple equilibria model?
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)
What does the multiple equiilbria graph showus?
SEE GRAPH AND EXPLANATION OF GRAPH IN NOTES