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LEO 2011 Education points George Psacharopoulos gpsach@rcn.com
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Illustrative statistics To what class do they really relate? Middle? Upper? Lower?
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Development Indicators, 2009 The World Bank LAC, female 15-24 unemployment 21% LAC, population under $2/day 17% Gini: Brazil.55 Chile.52 Ecuador.54
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LAC, Child labor, boys 7-14 Peru 26% Bolivia 24% Primary school completion Nicaragua, boys 70%
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Children out of school 6-11 (%) Country Poorest quintile Richest quintile Bolivia245 Guatemala588
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Question What is the analytical usefulness of class categorization in defining policy to solve the above problems???
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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?
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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
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Education returns and the cycle (%) Returns to education 10 Economic growth 1965 2010
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LEO 2012+ Education!
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