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LEO 2011. Education points George Psacharopoulos [email protected] Illustrative statistics. To what class do they really relate? Middle? Upper? Lower?. Development Indicators, 2009 The World Bank. LAC, female 15-24 unemployment 21%

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leo 2011

LEO 2011

Education points

George Psacharopoulos

[email protected]

illustrative statistics
Illustrative statistics

To what class do they really relate?

  • Middle?
  • Upper?
  • Lower?
development indicators 2009 the world bank
Development Indicators, 2009The World Bank
  • LAC, female 15-24 unemployment 21%
  • LAC, population under $2/day 17%

Gini:

  • Brazil .55
  • Chile .52
  • Ecuador .54
slide4
LAC, Child labor, boys 7-14
  • Peru 26%
  • Bolivia 24%

Primary school completion

  • Nicaragua, boys 70%
question
Question

What is the analytical

usefulness of class

categorization in defining

policy to solve the above

problems???

middle class focus
Middle class focus?
  • Descriptive rather than analytical
  • Elastic
  • Categorical rather than continuous
  • End up with real variables
  • Tautology rather than cause-effect
  • Circularity
  • Policy relevance?
better focus on lower class
Better focus on lower class?
  • Design policies to upgrade to middle class
  • Invest in preschool – Highest social returns
  • (Lack of incidence studies)
  • Reallocate public education expenditure from the middle to the lower class
  • Selective cost recovery in higher education
  • Tuition fees for the rich cum subsidies for the poor
  • Expand student loans – Efficient, equitable
education returns and the cycle
Education returns and the cycle

(%)

Returns to education

10

Economic growth

2010

1965

leo 2012
LEO 2012+

Education!

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