Education and Economic Development

111 Payne Hall

Tuesday and Thursday 1 – 2:25 PM

Human and Organizational Development

HOD 2430-1

Spring Semester, 2010

Stephen P. Heyneman

Professor

International Education Policy

Department of Leadership and Organizations

Box 514 Peabody Campus

Payne 205 B

Nashville, Tennessee 37203

Tel: 615 322 – 1169

Cell: 615 406 – 0287

Email:

Office hours: by appointment

Teaching assistants:

Jonathan Stern, Department of Leadership, Policy and Organizations

Jeongwoo Lee, Department of Leadership, Policy and Organizations

Background

For fifty years the predominant language of development has been that of economics and economic policy. Within that, one important emphasis has been on the degree to which human capital has been able to contribute to individual productivity and national growth, to occupational mobility and the equality of income.

However, the theories on which human capital assumptions are based have evolved over time, and have been the subject of controversy. This course will survey a range of those issues, keeping in mind the tradeoff in understanding between breadth and depth.

The course will cover different methods to answer questions of how much a society should invest in education. It will cover the debates over one versus another method and the views about whether these methods tended to “distort” investment policies and strategies. The economics of basic and higher education will be included, as well as costs, finance, and internal efficiency. Policies and experiments in education reform will be examined throughout the semester. At the end of the course there will be a discussion of the shift from human capital models to models of social capital, and what this implies for the future.

Designed as a survey of issues, students will become familiar with the different views over investing in education, the methods to evaluate the effectiveness of those investments, and the analytic trends within international agencies and national governments when education investments are rationalized.


Class Methodology

Classes will combine lecture, discussion and group presentations. Students are expected to contribute to class discussions by sharing their understanding of the readings, and by responding to questions set for debate. Students will take the lead in many classes by framing the discussion of readings or presenting cases for discussion. Students will learn how to use household survey data to evaluate the benefits and costs of education and to inform the policy debate.

All readings for the course will be posted electronically through Blackboard.

Undergraduate Requirements

Student Assessment % of Final Grade

Midterm examination 30

Final examination 30

Group paper/presentation 30

Classroom participation 10

The midterm will be given on March 4th and will cover the first half of the course.

The final exam will be due on our scheduled final exam date in May and will cover the second half of the course.

Class attendance is required. Recognition will be given for those whose class participation is excellent.

Paper/presentation

On the first day after the class roll is final, the class will be divided into topic groups. Each group will be assigned a topic and a date for presentation of that topic. The group is expected to (i) research the issue, (ii) prepare a one-paragraph abstract of the research, (iii) prepare a bibliography that includes all of the sources used in the research, and (iv) make a presentation to the class on the date specified. The presentation should be no longer than 20 minutes.

Members of the group are expected to contribute equally to this assignment. However, each will be asked to make a contribution in terms of research, editing, graphics and oral presentation. Students who try to free ride on the work of a teammate will receive a lower grade than other team members. Presentations should not be confined to the United States, but should draw on international experience.

Honor Code

We support the Undergraduate and the Graduate Honor Codes. Students are expected to do their own work on all assignments. Any evidence of cheating on exams, the paper, or other assignments will be reported to the Honor Council. Cheating includes but is not limited to copying the exams or assignments of other students, plagiarism, and having others write your paper for you. You may work with persons in your group on your group assignments. You may not receive help from former students or other persons in the class on these assignments.


Syllabus Summary

Tuesday Thursday

Session 1 January 13th

Introduction

Sessions 2/3 January 19th January 21st.

Human Capital Human Capital

Sessions 4/5 January 26th January 28th.

Gender Equity (?) Education Finance

Sessions 6/7 February 2nd. February 4th.

Education Finance Poverty and Learning

Sessions 8/9 February 9th. February 11th.

When Models become Monopolies: Education Policy and the World Bank

Sessions 10/11 February 16th. February 18th.

Ed. and Social Cohesion Ed. and Corruption

Sessions 12/13 February 23rd. February 25th.

Ed. and Foreign Aid International Trade in Ed.

Sessions 14/15 March 2nd. March 4th.

Film Being Damaris Midterm

Sessions 16/17 March 16th. March 17th.

Higher Ed. Competition Ed. Role of Government

Session 18/19 March 23rd. March 25th.

Ed. in the former USSR Obama’s Ed. Policies

Session 20/21 March 30th. April 1st.

Topic 1: Voc vs. academic Ed. Topic 2: Merit or Need-based Aid

Session 22/23 April 6th. April 8th.

Topic: 3: school choice? Topic 4: Mother tongue instruction?

Session 24/25 April 13th. April 15th.

Topic 5: Should schools teach nationalism? Topic 6: International students= brain drain?

Session 26/27 April 20th. April 22nd.

Topic 7: Does Money Matter? Topic 8: Ed. Investments.: 4 year olds or 18 year olds?

Session 28 April 27th.

Course summary


Syllabus

Session 1: Thursday, January 14

Course Introduction

Session 2: Tuesday, January 19th and Session 3 Thursday, January 21st.

Human Capital

Required Reading

Psacharopoulos, George and Woodhall, Maureen.1985. Education for development: An analysis of investment choices. New York: Oxford University Press, pp. 72-104; 166-184.

Solomon, L.C. 1987. The range of educational benefits. In, Economics of education research and studies, ed. George Psacharopoulos, 83-93. London: Pergamon Press.

Schultz, Theodore W. 1971. Investment in human capital. In Education and the economics of human capital, ed. Ronald Wykstra, 23-41. New York: The Free Press.

Recommended Reading

Duflo, Esther. 2006. Poor but rational? In Understanding poverty, ed. Abhijit V. Banerjee, Roland Bénabou, and Dilip Mookherjee, 367-379. New York: Oxford University Press.

Psacharopoulos, George. 2004. Returns to investment in education: A further update. Education Economics 12: 111-124.

Rosenzweig, Mark R. 1996. When investing in education matters and when it does not. Challenge March/April: 22-29.

Becker, Gary S. 1993. Human capital: A theoretical and empirical analysis, Third Edition. Chicago,IL: University of Chicago Press. [Parts I and II]

Schultz, Theodore W. 1979. Autobiography.

http://nobelprize.org/nobel_prizes/economics/laureates/1979/schultz-autobio.html.

Schultz, Theodore W. 1979. Nobel Prize Acceptance Speech.

http://nobelprize.org/nobel_prizes/economics/laureates/1979/schultz-lecture.html.

Alkire, Sabina. 2002. Valuing freedoms: Sen’s capabilities approach and poverty reduction Oxford, UK: Oxford University Press.

Sen, Amartya. 1999. Development as freedom. New York: Anchor Books.

Vollman, William T. 2007. Poor people. New York: Harper-Collins Publishers. [selected case studies]

Hanushek, Eric and Ludger Woessmann. 2007. The role of education quality for economic growth. World Bank Policy Research Working Paper #4122. Washington, DC: The World Bank.

World Bank. 1993. The East Asian miracle. Washington, DC: The World Bank. (pp.43-69)

Krugman, Paul. 1994. The myth of Asia’s miracle. Foreign Affairs 73: 62-77.

Oketch, Moses O. 2006. Determinants of human capital formation and economic growth of African countries. Economics of Education Review 25(5): 554-564.

Pritchett, Lant. 2006. Does learning to add up add up? The returns to schooling in aggregate data. In, The handbook of the economics of education, ed. Erik Hanushek and Finis Welch, 635-692. Amsterdam: Elsevier.

Wang, Yan and Yudong Yao. 2001. Sources of China’s economic growth, 1952-1999: Incorporating human capital accumulation. Washington, DC: The World Bank.

Session 4: Tuesday January 26th. Gender Equity

(Kathryn Anderson)

Required Reading:

Alderman, Harold and Elizabeth M. King. 1998. Gender differences in parental investment in education. Structural Change and Economic Dynamics 9(4): 453-468.

Schultz, T. Paul. 1998. Returns to women’s education. In Women’s education in developing countries: Barriers, benefits, and policies, ed. Elizabeth M. King and M. Anne Hill, 51-93. Washington, DC: The World Bank. [You may find the chapters on education by region interesting.]

Schultz, T. Paul. 2002. Why governments should invest more to educate girls. World Development 30(2): 207-225.

World Bank. 2001. Engendering development. A World Bank policy research report. New York, N.Y.: Oxford University Press. (pp.73-107 and 147-180)

Recommended Reading

Bowen, Donna Lee. 2004. Islamic law and the position of women. In Islam and Social Policy, ed. Stephen P. Heyneman, 44-117. Nashville, TN: Vanderbilt University Press.

Dougherty, Christopher. 2005. Why are the returns to schooling higher for women than for men? Journal of Human Resources 40(4): 969-988. [Excellent summary of the literature on returns in the US.]

Jacob, Brian A. 2002. Where the boys aren’t: Non-cognitive skills, returns to school, and the gender gap in higher education. National Bureau of Economic Research (NBER) Working Paper #8964. Cambridge, MA: NBER.

Wils, Annababette and Anne Goujon. 1998. Diffusion of education in six world regions 1960-1990. Population and Development Review 24: 357-368.

Session 5: Thursday, January 28 and Session 6: Tuesday, February 2nd.

Education Finance

Required reading

Benson, Charles S. 1978. The economics of education. Boston: Houghton Mifflin Company, pp. 261-291 and 331-373.

Psacharopoulos, George and Woodhall, Maureen.1985. Education for development: An analysis of investment choices. New York: Oxford University Press, (Chapter on education finance pp.128-165).

Recommended reading

Glewwe, Paul and Michael Kremer. 2005. Schools, teachers and education outcomes in developing countries. Center for International Development (Harvard University) Working Paper #122. Cambridge, MA: Harvard University. [Included in the Handbook on the Economics of Education; sections on finance in developing countries, pp. 6-11]

Reschovsky, Andrew. 2006. Financing schools in the new South Africa. Comparative Education Review 50(1): 21-45.

Hovey, Harold A. 1999. State spending for higher education in the next decade: The battle to sustain current support. National Center Report 99/3, prepared by State Policy Research, Inc. for The National Center for Public Policy and Higher Education.

Ladd, Helen F. and Janet S. Hansen, eds. 1999. Making money matter: Financing America’s schools. Washington, DC: National Academy Press. [electronic book; skim through sections on “Raising revenues fairly and efficiently” in Part I and all of Part II, “Fairness and productivity in school finance”]

Clotfelter, Charles and Philip Cook. 1990. On the economics of state lotteries. Journal of Economic Perspectives 4:105-119.

MacPherson, Michael S. and Morton O. Schapiro. US higher education finance. In Handbook on the economics of education, vol. 2, ed. Eric A. Hanushek and Finis Welch, 1403-1498. Amsterdam: North-Holland.

Session 7: Thursday, February 4th. Do Children of the Poor Learn Less in School?

Required Reading

Heyneman, Stephen P. 1980. Differences between developed and developing countries: A comment on Simmons and Alexander’s determinants of school achievement. Economic Development and Cultural Change 28: 403-406.

Heyneman, Stephen P. and Loxley, William. 1983. The effect of primary school quality on academic achievement across 29 high- and low-income countries. American Journal of Sociology 88: 1162-1194.

Background Material

Coleman, James S. et al. 1968. The equality of educational opportunity report. Washington D.C.: U.S. Printing Office.

Baker, D.P., B. Goesling, and G. Letendre. 2002. Socio-economic status, school quality and national economic development: A cross-national analysis of the Heyneman-Loxley effect. Comparative Education Review 46: 291-313.

Gameron, A and D.A. Long. 2008. Equality of educational opportunity: A 40 year perspective. In Education and equity: international perspectives on theory and policy, ed. R. Teese, S. Lamb, and M. Duru-Bellats, . New York: Springer Press.

Chudgar, Amita and Luschei, Thomas F. 2009. National income, income inequality and the importance of schools: A hierarchical cross-national comparison. American Education Research Journal 46(3): 626-658.

Heyneman, S.P. 2005. Student social background and student achievement: What is the right question?. American Journal of Education 112(1) (November): 1-9.

Session 8 and Session 9 Tuesday, February 9th and Thursday, February 11th

When Models become Monopolies: Education and the World Bank

Required Reading

Psacharopoulos, G., J.P. Tan, and E. Jiminez. 1986. Financing education in developing countries: An exploration of policy options. Washington D.C.: The World Bank.

Bennell, Paul. 1996. Using and abusing the rates of return: A critique of the World Bank. International Journal of Education Development 16: 235-248.

Heyneman, Stephen P. 1995. The economics of education: Disappointments and potential. UNESCO Prospects XXV: 559-583.

Heyneman, Stephen P. 2003. The history and problems of making education policy at the World Bank. International Journal of Education Development 23: 315-337.

Task force on Higher Education and Society. 2004. Moderated discussion: The task force on higher education and society. Comparative Education Review 48(1): 70-88

Background Material

World Bank. 1994. Higher education: Lessons of experience. Washington D.C.: The World Bank.

World Bank. 1995. Priorities and strategies for education. Washington D.C.: The World Bank.

World Bank. 2000. Higher education in developing countries: Peril and promise. Washington D.C.: The World Bank.

World Bank 2002. Constructing Knowledge Societies: New Challenges for Tertiary Education. Washington D.C.: The World Bank

Session 10: Tuesday, February 16th Education and Social Cohesion

Required Reading

Heyneman, Stephen P. 2000. From the party/state to multi-ethnic democracy: Education and social cohesion in the Europe and Central Asian region. Educational Evaluation and Policy Analysis 21: 345-361.

Heyneman, Stephen P. 2002/3. Defining the influence of education on social cohesion. International Journal of Educational Policy, Research and Practice 3: 73-97.

Heyneman, Stephen P. 2007. Three Universities in Georgia, Kazakhstan and Kyrgyzstan: The Struggle Against Corruption and For Social Cohesion. UNESCO Prospects 3 (September): 305-318.

Background Material

Dreeben, R. 1967. The contribution of schooling to the learning of social norms. Harvard Education Review 37: 211-237.