The State,Socialisation, and Private Schooling: When Will Governments Support Alternative Producers?

Understanding the institutional features that can improve learning outcomes and reduce inequality is a top priority for international and development organisations around the world. Economists appear to have a good case for support to non-governmental alternatives as suppliers of schooling. However, unlike other policy domains, freer international trade or privatisation, economists have been remarkably unsuccessful in promoting the adoption of this idea. We develop a general positive model of why governments typically produce schooling which introduces the key notion of the lack of verifiability of socialisation and instruction of beliefs, which makes third party contracting for socialisation problematic. We use the model to explain variations around the world in levels of private schooling. We also predict the circumstances in which efforts to promote the different alternatives to government production – like charter, voucher, and scholarship – are likely to be successful.     

Education and Freedom of Choice: Evidence from Arranged Marriages in Vietnam

Abstract

Using household data from Vietnam, we provide evidence on the effects of education on freedom of spouse choice. We use war disruptions and spatial indicators of schooling supply as instruments. The point estimates indicate that a year of additional schooling reduces the probability of an arranged marriage by about 14 percentage points for an individual with eight years of schooling. We also estimate bounds on the effect of education on arranged marriage when exclusion restrictions are violated locally (the lower bound is six to seven percentage points). The impact of education is strong for women, but significantly weaker for men.     

The Impact of Adult Mortality and Parental Deaths on Primary Schooling in North-Western Tanzania

Mortality of parents and other adults due to the African AIDS epidemic could reduce children's primary schooling by reducing households' ability to pay fees, raising the opportunity cost of children's time, and leaving orphaned children with guardians who care less about their education than would their parents. This study measures the impact of adult deaths and orphan status on primary school attendance and hours spent at school using a panel household survey from north-western Tanzania, an area hard-hit by the AIDS epidemic. Attendance was delayed for maternal orphans and children in poor households with a recent adult death; there was no evidence that children 7-14 dropped out of primary school due to orphan status or adult deaths. However, among children already attending, school hours were significantly lower in the months prior to an adult death in the household and seemed to recover following the death. In addition, girls sharply reduced their hours in school immediately after losing a parent. Improvements in school quality and better access to secondary education would improve outcomes for all children, including those affected by adult AIDS mortality. Beyond that, public policy needs to focus on the special schooling constraints faced by children affected by adult deaths, both in terms of increased opportunity costs of their time and the psychological impacts, with an eye to how they might be mitigated and at what cost.     

An Inquiry into the Development Process of Village Industries: The Case of a Knitwear Cluster in Northern Vietnam

While village industries are known to have high potential to grow, their growth process has seldom been analysed. This study explores the development process of a rapidly growing village-based garment cluster in northern Vietnam. We found that both the human capital and social capital (measured by the kinship ties with overseas Vietnamese traders) of the proprietors facilitated their innovative entry into new export markets. Furthermore, general human capital acquired by schooling and specific human capital acquired by management experience are found to have contributed to the adoption of a vertically integrated production system, which, in turn, contributed to enhanced enterprise performance.     

The determinants of teenage schooling in Jamaica: Rich vs. poor,females vs. males

The belief that schooling is an important way to reduce poverty and increase social mobility has lead to large government‐sponsored investment in education in developing countries. Jamaica has an impressive literacy and primary enrolment rate, yet the ability of its secondary school system to enhance social mobility and reduce inequality is limited. Regression results from a nationally representative household survey show that family background variables (parental education and income) are important determinants of secondary school enrolment, and income is the single most important determinant of enrolment in an ‘elite’ high school, with the impact being twice as large for females. Part of the income effect is shown to represent unobserved community heterogeneity. One conclusion is that the recent ‘cost‐sharing’ education policy of the Jamaican government, if applied selectively to the elite academic high schools, will fall disproportionately upon rich households.     

The Political Economy of Tanzania: Decline and Recovery,Edited by Michael Lofchie,Philadelphia: University of Pennsylvania Press, 2014, pp. 265, £39, ISBN 9780812245905

Each reform implies social and economic changes. After experiencing war and reunification, today Vietnam is implementing a comprehensive and deep process of renovation (doi moi), but a revolution needs the support of the population to be successful. This article investigates whether the Vietnamese are supportive of some of the main features of a market economy. In particular the preferences for competition, ownership of firms (either private or public) and income inequality as an incentive to productivity are studied here. The data allow us to conclude that the doi moi is not at risk, but the population tend to contrast income inequality.     

Well Begun,but Aiming Higher: A Review of Vietnam’s Education Trends in the past 20 Years and Emerging Challenges

Given its modest position as a lower-middle-income country, Vietnam stands out from the rest of the world with its remarkable performance on standardised test scores, school enrolment, and completed years of schooling. We provide an overview of the factors behind this exemplary performance both from an institutional viewpoint and by analysing several different data sources, some of which have rarely been used. Some of the highlights are universal primary school enrolment, higher girls’ net enrolment rates, and the role of within-commune individual factors. We further discuss a host of challenges for the country – most of which have received insufficient attention to date.     

What Difference Do Polarisation Measures Make? An Application to China

In recent years there has been much discussion of the difference between inequality and polarisation. The vast literature on inequality is held to miss out key features of distributional change, which are better described as changes in polarisation. Axioms have been proposed which capture some of these differences, and measures of polarisation, as distinct from inequality, have been suggested. The theoretical distinctions proposed in this literature are indeed interesting. But do the newly proposed measures of polarisation give different results in comparing societies over time? We address these questions for China, where dramatic increases in inequality and polarisation have been much discussed in the literature. We find that, contrary to theoretical expectation, the new measures of polarisation do not generate very different results from the standard measures of inequality. The paper ends by considering a different approach to polarisation which might better conform to the policy concerns expressed in the specific context of China.     

Household Entrepreneurship and Social Networks: Panel Data Evidence from Vietnam

Using a unique panel of household businesses for Vietnam, this paper sheds light on the links between households’ and entrepreneurs’ social networks and business performance. We address two related questions. The first question asks if we can find evidence of a differentiated effect of employment of members of the family versus hired workers on the business performance. A second question tackles the respective effects of various dimensions of social networks on business technical efficiency. The hypothesis is that, beyond the channel of labour productivity, entrepreneurs that are confronted with an unfavourable social environment may produce less efficiently and realise a lower output than what could be possible with the same amount of resources. We find evidence of a marginal productivity differential between family and hired labour and highlight results consistent with the presence of adverse social network effects faced by households running a business, in particular ethnic minorities. We also stress the importance of professional networks for successful entrepreneurship.     

Global Inequality in Well-being Dimensions

This paper contributes to the literature on global inequality in multidimensional well-being by examining inter-country disparities in the longevity, knowledge and standard of material living components of the well-known and widely-used Human Development Index for the years 1992–2004. It differs from previous studies by examining global inequality in each of the components of this index alongside that of the index as a whole, thus side-stepping ambiguities over weighting that are inherent to multidimensional well-being indices. The Gini coefficient, both population and non-population weighted, is used to measure the extent of inequality. Results indicate that the different components often provide very different information to the index as a whole, especially with respect to changes in global inequality over time. Most component variables show declines in global inequality, whereas the longevity component exhibits increased inequality since 1992.     

Social Inequality and Assessments of Democracy and the Market: Evidence from Central and Eastern Europe

Considerable comparative scholarly attention has been paid to various aspects of mass support for democracy and the market. However, despite strong theoretical suggestions of a linkage, little is known about the impact of social inequality on this support. We address this issue using evidence from mass surveys undertaken in 12 post-communist states in 2007, supplemented by country-level data about economic and political performance. Specifically, we investigate whether social inequality generates negative perceptions that democracy and the market will lead to social conflict and if it increases support for anti-democratic forms of governance. Notably, we find little link between citizens’ expectations of social conflict and national-level indices of income inequality. However, we do find a link between perceptions of the extent of social inequality and expectations of market-generated—but not democracy-generated—conflict. Underscoring these positive and negative findings, perceptions of social inequality are also clearly consequential for support for ‘strong-hand’ economic government but not for anti-democratic leadership.     

Historical Origins of Uneven Service Supply in Sub-Saharan Africa. The Role of Non-State Providers

Abstract

Variations in non-state service provision are a relatively understudied dimension of wellbeing inequality in sub-Saharan Africa. This study from Madagascar documents long-term associations between nineteenth-century missionary education and the availability of private schools today. The article exploits an original data set with unusually detailed information on missionary education and contemporary local private school supply. The results indicate high levels of persistence in non-state schooling at the geographic level. The long tradition of faith-based education appears to contribute to religious differences that overlap only imperfectly with more widely studied ethnic divides.     

A Method to Update Poverty Maps

The small area estimation method proposed by Elbers et al. (Elbers, C., Lanjouw, J. and Lanjouw, P. (2003) Micro-level estimation of poverty and inequality. Econometrica, 71(1), pp. 355–364) combines a household survey and a census to generate a disaggregated map of poverty measures. Since censuses are often conducted every 10 years, construction of poverty maps on a regular basis is not straightforward. This article discusses methods to update poverty maps for years between censuses by combining an old census and new household surveys. These discussed methods are illustrated by producing a poverty map in Vietnam for the years 2004 and 2006 using the 1999 Population and Housing Census and Vietnam Household Living Standard Surveys in 2002, 2004 and 2006. The validation of the updating methods is examined by comparing poverty estimates in 2006 obtained from the updating methods with benchmark poverty estimates obtained from the standard ‘small area estimation’ method using data from the 2006 Vietnam Household Living and the 2006 Rural Agriculture and Fishery Census.     

Income Inequality and Redistributive Spending: Evidence from Panel Data of Texas Counties

Abstract

The relationship between redistributive spending and income inequality has been of interest to researchers for several decades. Existing literature has largely focused on country-level studies and may be broadly divided into two groups: studies that find a positive relationship between the two and studies that find a negative relationship. The positive association is usually explained through the median voter theory and the negative association through the social insurance theory.

This study offers a test of the median voter and social insurance hypotheses by examining the relationship between economic inequality, voter turnout and redistributive spending at the sub-national level among the 50 largest counties in Texas over years 2006 to 2012. One of the advantages of using a regional sample is that counties are relatively more homogeneous and allow for the collection of better records across time. Random effects models suggest that income inequality is positively associated with redistributive spending. The study improves our understanding of the patterns of redistribution at the sub-national level and highlights the importance of careful inter-temporal modelling of relationships between redistributive spending and inequality.     

Child Schooling,Child Health,and Rainfall Shocks: Evidence from Rural Vietnam

Abstract

We study the effect of rainfall shocks on child schooling outcomes and on standardised height for age (a measure of child health) in rural Vietnam. We find that adverse rainfall shocks during pregnancy adversely affect children’s school entry delay and progress through school. Adverse rainfall shocks in the third year of life adversely affect both schooling and child health. These effects differ by region, as a result of constraints that reflect regional economic heterogeneity. We predict that policies that help rural families smooth income shocks will result in increases in human capital and in substantial cumulative returns over a worker’s working life.     

Virtuous Interactions in Removing Exclusion: The Link between Foreign Market Access and Access to Education

We outline a methodology which aims to give an answer to the widespread demand of impact analyses by regulators or by funding agencies which need to evaluate the current and past performance of development projects and may lack time series evidence. We devise a retrospective panel data approach to evaluate the dynamics of the effects of fair trade affiliation on the schooling decisions of a sample of Thai organic rice producers across the past 20 years. We find that the probability of school enrolment in families with more than two children is significantly affected by fair trade affiliation years. We try to ascertain whether our finding is robust to endogeneity of producers' choices of local cooperative affiliation and adoption of organic techniques. The significant difference between pre- and post-fair trade affiliation performance documents that fair trade participation generates a significant break in the schooling decisions of affiliated households.     

Persistent poverty in North East Ghana

This paper explores local poverty and wealth inequality in the Upper East Region of northern Ghana in the period from 1975–89. Land was not scarce and the social management of household membership and household labour were critical to household security, but this social management was not independent of wealth status. There was a virtuous circle between wealth and household labour supply and a vicious circle between poverty and small household size. Poverty traps existed so that those with too little labour and too little wealth engaged in strategies which entrenched them in poverty.     

The EU’s preferential trade agreements with Singapore and Vietnam. Market vs. normative imperatives†

By negotiating Free Trade Agreements the EU aspires both to increase the competitiveness of its industry and contribute to sustainable development in the partner country. It pursues a flexible approach to norm promotion which aims at supporting developing countries in their attempt to adjust to international standards. Ideational and institutionalist scholars interpreted this approach as a manifestation of its normative power. We show that in the negotiations with Singapore and Vietnam the positions of the EU were not consistent with its declared goals, since they put stronger pressures upon Vietnam to adjust to regulatory standards. We explain this lack of consistency as the result of different patterns of interest group mobilization in the two negotiations. Those patterns, in turn, depend upon the bargaining power the EU has with single trade partners, competition between the EU and third countries, especially the US, and the structure of the economy of the trade partners.     

Impact of Shocks on Labour and Schooling Outcomes and the Role of Public Work Programmes in Rural India

The effectiveness of the National Rural Employment Guarantee Scheme (NREGS) on rural labour market dynamics in India has been widely debated in the literature. However, the impact of the NREGS on non-agricultural labour market and children schooling outcomes in reference to exogenous rainfall shock is unclear from the existing literature. This paper exploits the Indian National Sample Survey and rainfall measures from the precipitation archive of the University of Delaware to investigate the role of the NREGS in the labour market and schooling outcomes of children during shocks. Using a difference-in-differences methodology, we focus on disaggregated shock specification and find a shock-cushioning pattern for the NREGS during negative shocks. However, there is an excess demand for labour during positive shock periods resulting from exposure to the NREGS. The implication is that the excess informal labour market opportunity translates to a reduction in school engagement for children. These findings summarily distinguish the role of the NREGS during positive and negative shocks respectively.     

Remittances,Poverty, Inequality and Welfare: Evidence from the Central Plateau of Burkina Faso

This paper applies Gini and concentration coefficient decomposition as well as the Foster-Greer-Thorbecke poverty index and the Stark-Yitzhaki welfare index to new data from four villages in Burkina Faso, to compare the marginal effects of remittances from intercontinental and intra-African migration on inequality, poverty and social welfare. Evidence is found that intra-African remittances reduce inequality while intercontinental remittances have the opposite effect. Also, it is found that although remittances from intercontinental migration are associated with much lower incidence, depth and severity of poverty, the marginal impact of remittances from this form of migration on social welfare is limited because recipients do not include the rural poor.