It pays to go to school

This is from The Economist:

WHICH has provided a better return in recent decades: America’s stockmarket or education? The latter, according to a research review by George Psacharopoulos and Harry Patrinos for the World Bank. The two economists looked at 1,120 studies, across 139 countries, and came up with an annual average “rate of return”—actually a pay premium, the increase in hourly earnings from an extra year of schooling—of 8.8%. The analogy is inexact, but for comparison America’s stockmarket returned an annual 5.6% over the past 50 years.

Their figure excludes social gains, such as lower mortality rates associated with greater education. The premium is higher for girls and for primary education. It is also higher in poor countries, presumably because the smaller the share of educated people, the higher the pay they can command. The same reasoning suggests that the return should have dwindled as educational attainment rose. Instead, it has stayed strong, especially for higher education.

More on this here.

Screen Shot 2018-05-05 at 5.45.31 PM.pngEducation attainment appears to be trending in the right direction across the globe (see image). However, the rate of improvement over the last three decades has been higher in some regions than in others. For example, while in 1992 Africa and South Asia had 42% and 38% of the out-of-school children of primary age, respectively, by 2014 the comparable figures were 57% and 19%. Clearly, African states need to do more.

The Bill & Melinda Gates Foundation has recently announced its foray into education. If done well, the Foundation’s involvement in the education secctor has the potential to nudge policy makers in the right direction, while also generating valuable data for cross-country comparisons.

Labor is (relatively) very expensive in Africa: the case of teachers

This is from Justin Sandefur over at CGD:

Teachers in poor countries earn far more, in relative terms, than teachers in the OECD—and several recent studies suggest their pay isn’t linked to skills or performance. But we also have growing evidence that high-quality teachers generate huge economic returns. The question is how to ensure high pay attracts high quality.

…. This may come as a bit of a surprise to many rich-country readers. There’s no doubt that teachers in, say, India earn much less than teachers in Ireland, but relative to context, they tend to be very well paid. Dividing by per capita GDP is a rough and ready way to put salaries in context. With the help of my research assistant Mallika Snyder, we pulled together teacher salaries from as many countries as possible and ranked them in terms of their ratio to per capita GDP.

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And this is from a World Bank report:

After controlling for a number of factors—such as income per capita, cost of living, firm size, and sector of activity— we see that labor costs in Africa are at least 10 percent higher than they are in East Asia, while South Asia retains its strong comparative advantage over Africa with around 40 percent lower labor costs.

….. in nominal terms, without controlling for any other factors—the South and East Asian regions enjoy a labor cost advantage over Africa of 25 percent and 60 percent, respectively.

Is There Room for Case Studies in Development Practice?

Amid the current much-needed revolution in (quantitative) evidence-driven development practice, is there room for case studies?

Michael Woolcock at the Bank says yes:

The frequency and sophistication with which case studies are deployed by social scientists has greatly expanded in recent years. The goal now is not merely to document or describe, but to diagnose, explain, interpret, and inform a basis for action. Professional schools across the disciplines – from medicine and engineering to business and public policy – now routinely use ‘the case method’ not only to teach but to generate practical knowledge.

As an example, Woolcock cites a report with case studies of successes achieved in the Ministries of Finance and Education in The Gambia (I should add, despite Yahya Jammeh):

Despite facing formidable political, economic, and capacity challenges, The Gambia has recorded sizable advances in the education sector in a relatively short time frame. Since 2000, enrollment has more than doubled in secondary schools, while the number of students enrolled in basic education has increased by 40 percent, with notable growth in the madrassas schools. Gender equality and completion rates in basic education have continued to improve across the board and surpass the regional averages. Simultaneously, the number of teachers formally trained and the number of students enrolled in the Teachers’ College has grown considerably since 2005.

Screen Shot 2015-02-25 at 4.30.59 PMThese gains are directly linked to the scaled-up investment in the sector, which has translated into a greater number of schools, larger number of qualified teachers and monitors, and the introduction of innovative programs catering to hard-to-reach groups. In turn, these achievements have been made possible by the organizational and management changes introduced by the Ministry of Basic and Secondary Education (MoBSE) and its ability to remain focused on a small set of goals, report results, and mobilize domestic and external support to realize them, while generating and renewing its leadership cadre. To achieve this, the institution has had to navigate and solve numerous challenges in its internal organization and in the governance environment.

This is how development happens. Specific segments of governments get it right and, with some luck, generate positive spillovers into other departments. In Gambia it is happening in the Ministries of Finance and Education. In Kenya, the Kenya Revenue Authority (KRA) and, to some extent, the Treasury are doing much of the heavy-lifting in the quest to rationalize the Kenyan economy.

Is our children learning? (Credit to Bushism)

The Guardian reports:

More than two out of every three pupils who have finished two years of primary school in east Africa fail to pass basic tests in English, Swahili or numeracy, according to a new report, Are our children learning?.

The differences in performance vary both across and within countries:

The report found large differences in average test scores between countries in east Africa. Kenyan pupils perform best in literacy and numeracy. Ugandan children perform worst in the lower school years, but slowly overtake Tanzanian children and outperform them after six years in school.

But it is the within-country differences that are cause for a rethink of education policy in east Africa. Kids in private schools appear to do much better than those in public schools (the gap is most stark in Tanzania, 28 percentage points). The Ugandan school system appears to be the worst, with barely half of EVEN the private school kids passing.

In a finding likely to fuel the debate on public versus private schools, the report said students in private schools perform better than pupils in state schools in all three countries – a difference particularly marked inTanzania, where the pass rate among 10 to 16-year-olds for numeracy and literacy tests was 47% in state schools, compared with 75% in private schools.

“In part, the difference between Tanzania and the other countries is likely to be driven by the much smaller share of pupils attending private schools, even among the non-poor, suggesting they must be particularly selective,” said the report. In Kenya, the pass rate in private schools was 83%, compared with 75% in government schools, while in Uganda the gap was 53% to 36%.

As a product of the Kenyan public school system (and a Wazimba for life), I believe that public schools are the way to go. With some thought and innovation, public schools can be made to work – and in the process serve as the best chance for inter-generational SES mobility. The debate should be about how to improve public schools, as opposed to over the false choice of quantity vs. quality.

A possible model could be something akin to the Kenyan National Schools concept in which select schools across the country get extra resources not only to boost performance but also to act as testing grounds for new learning tools – which can then inform policy to help “Provincial Schools” catch up. Of course this would ineluctably create a multi-tier school system at the beginning, but it is arguably better than a system in which most (if not nearly all, see Uganda and Tanzania) public schools are failing.

It is important to note that in Kenya the best high schools have historically been public. With investment and openness to experimentation and innovation this tradition can be maintained.

H/T @AAA_ipregroup 

Quick hits

Guide to arguing on the internet (HT Lauren).

Speaking of arguing on the internet, I like the drama that is spats between economists and other academics on their respective blogs.

The Economist presents the faces of famine in the Horn. It is beyond sad that so many people should be condemned to suffer this man-made tragedy.

Brett Keller has posts here and here on Sam Childers (a.k.a. machine gun preacher), a gun-runner into the habit of doing morally and ethnically dubious things in the name of God. Keller says that Childers is “stockpiling arms at his orphanage and has admitted to selling weapons to unnamed armed factions in Sudan, Uganda, and Rwanda.”

In Zambia (where I shall be for the elections in Sept.) the politics of citizenship and belonging are yet to be settled 50 years after independence. We recently witnessed the dangers of de-legitimizing whole sections of countries as outsiders in Cote d’Ivoire. I hope that if Sata ever wins he will not do what incumbent Ivorians did to ignite a rebellion in the northern reaches of their country. For more on this check out this great book on the Ivorian collapse. I have read it and absolutely loved it.

A muddy few months ahead for the South African government. Infighting with the ANC top brass might mean an early exit for President Zuma. With over 60% of the votes in the last election, the ANC is essentially an oversize coalition prone to internal wrangles. It will be interesting to see how Zuma weathers the storm in the midst of challenges from both COSATU and Malema.

Lastly, the current issue of the Journal of African Economies looks at the impact of higher education in Africa. The main takeaway is that the low quality of education at lower levels (primary and secondary) has meant that the biggest bang for the buck on the Continent, as far as education is concerned, only comes with higher education. Too bad that many of those that get higher education are underpaid or out of the Continent all together.

Explaining academia’s liberal bias

According to the New York Times it is more than just self-selection. There is also screening:

“The tendency of liberals to pursue advanced education isn’t a result of higher I.Q. or less materialism or any such indirect factor,” Dr. Gross told me. He pointed instead to a direct factor: the liberal reputation of the profession since it came of age in the Progressive Era. “The liberalism of professors is explained mostly by self-selection,” Dr. Gross said, arguing that conservatives avoid fields with reputations that don’t fit their self-identity.

But many conservatives insist that a liberal reputation wouldn’t dissuade them from taking a gig with tenure and summers off. The self-selection theory doesn’t satisfy Peter Wood, the president of the National Association of Scholars, a group critical of what it calls liberal bias in academia. Dr. Wood, a political conservative, is a former professor of anthropology and associate provost at Boston University.

….. Dr. Wood wrote. “If it comes down to it, entry can still be impeded through other techniques, the feminist and the multiculturalist vetoes on the faculty search committee being the deadliest as far as conservatives go, although there are others.”

…….. If you were a conservative undergraduate, would you risk spending at least four years in graduate school in the hope of getting a job offer from a committee dominated by people who don’t share your views?

More on this here.