Higher levels of education for higher private returns: New evidence from Malaysia

This study provides new and more accurate information about private rates of return to education (RORE) in Malaysia. Most of the prior studies on RORE have not addressed selectivity bias, and those that have are based on an older data set. The findings suggest that for both males and females, the average private returns to education are highest at the secondary (16.5 percent and 27.2 percent, respectively) and university (15.5 percent and 16.1 percent, respectively) education levels. Thus, it is important to pursue education until the secondary level and further to the university level to capture higher returns to education.     

Smoking, discount rates, and returns to education

Individual time preference determines schooling enrolment. Moreover, smoking behavior in early ages has been shown to be highly related to time preference rates. Insofar as discount rates are uncorrelated to ability, predicting school enrolment by discount rates can get rid of the ability bias in an earnings regression. Accordingly, we use smoking at age 16 as an instrument for schooling. Doing this for Austrian cross-sectional data, we find no evidence of ability bias in a simple earnings regression; the results are more mixed if family background is also included.     

Schools, skills and risk

Skill development involves important choices for individuals and school designers: should individuals and schools specialise, or should they aim for an optimal combination of skills? We analyse this question by employing mean–standard deviation analysis and show how cost structure, benefit structure and risk attitudes jointly determine the optimal investment strategy. With combined data from DOT and CPS, we establish an upward sloping mean–variance opportunity frontier in skills space.     

Gains from female education in rural Bangladesh: A multidimensional approach

Despite progress toward gender equality in education in Bangladesh, its female labor force participation (FLFP) rate has been stagnant relative to that of men, especially in marginal rural areas. To identify the overall benefit of schooling investment in women in rural Bangladesh, we examine the impact of female educational attainment on not only FLFP but also gains from marriage and household welfare. Applying a fuzzy regression discontinuity design where plausibly exogenous variation in school enrollment is created by the nationwide stipend program for women, we find moderate impacts of female education on FLFP, while female with higher education are more likely to marry more educated husbands who generate higher household income, particularly from non-farm activities. The results also show the significantly positive impacts of women’s education on sanitation control and children’s health. These findings indicate that female schooling enhances women’s role and well-being through marriage and household activities rather than their labor market activities.     

School factors underlying demand for private supplementary tutoring in English: urban and rural variations in Bangladesh

Private supplementary tutoring has long existed in Bangladesh, as elsewhere in the world, but in recent decades has become much more visible. Much tutoring “shadows” or reproduces formal schooling as fee-based academic teaching outside school hours. This paper focuses on school factors that shape demand for private supplementary tutoring in English at the secondary level, drawing on data gained from both quantitative and qualitative methods. The paper is especially concerned with urban and rural variations, noting that rates of tutoring are greater in urban areas but that many factors converge to create similarities. Private tutoring in English is highly demanded because English is a compulsory course; and in addition to being a subject in its own right, it assists in the learning of other subjects. While private tutoring may support the academic learning of some pupils, it also has problematic dimensions. As such, the spread of tutoring across urban and rural areas is not necessarily to be welcomed.     

The role of pre-school education on learning achievement at primary level in Bangladesh

This paper examines the impact of pre-school education on learning achievement at primary level in Bangladesh. Evidence from learning achievement test and household and school-related data were obtained from 7093 pupils attending 440 primary schools in Bangladesh. Findings suggest that a small proportion (15.3%) of primary school pupils attended pre-school. Pupils from educated parents and well-off families were more likely to attend. In principle, however, attendance at pre-school did not predict later learning achievement at primary level, but a range of socio-demographic, school-related and additional educational factors did have an impact. It is concluded that further research is warranted to examine the quality of pre-school provision offered in Bangladesh and the qualifications of professionals working with young children in these centres.     

Access to college and heterogeneous returns to education in China

We apply a semi-parametric latent variable model to estimate selection and sorting effects on the evolution of private returns to schooling for college graduates during China's reform between 1988 and 2002. We find that there were substantial sorting gains under the traditional system, but such gains have dissipated to negligible levels in the most recent data. We take this as evidence of growing influence of private financial constraints on decisions to attend college as tuition costs have risen and the relative importance of government subsidies has declined. The main policy implication of our results is that labor and education reform without concomitant capital market reform and government support for the financially disadvantaged exacerbates increases in inequality inherent in elimination of the traditional “wage-grid”.     

Evaluating an improved quality preschool program in rural Bangladesh

An important goal of education in developing countries is to implement and improve early childhood education. A pre–post intervention–control design was used to compare a piloted-revised versus a regular preschool program offered by an organization in rural Bangladesh. After 7 months in operation, the quality of the piloted-revised program was higher than the regular program, though the regular program had also improved. Children attending pilot preschools made greater gains than children attending regular preschools on most outcome measures. Action research was conducted alongside the quantitative evaluation to study the process of the implementation and to identify areas for further improvement.     

The challenges of geographical inclusive education in rural Bangladesh

ABSTRACT

This paper considers the challenges of promoting inclusive education in geographically isolated rural communities in Bangladesh. Inclusion is explored from both government and non-government (NGO) providers, and identifies challenges and opportunities for implementing inclusive practices. Challenges for implementing inclusion are linked to poverty, gender inequality, ethnicity, remoteness, language barriers, issues for children with disabilities, and the negative impact of climate (e.g. monsoonal flooding, landslides, and other natural calamities that beset Bangladesh on a regular basis) as well as the current humanitarian crisis with the Rohingya children now in Bangladesh. While there is sometimes a mismatch between government policy and the literature on inclusion in relation to practical implementation at the local level, opportunities for inclusion come with the dedication and passion of educators who provide teacher training about inclusive education, assistive technologies (Braille materials, hearing aids, etc.), multi-lingual education (MLE) materials, and advocacy by reaching out to parents and community members. Findings indicate that characteristics such as culture, the development of local resources, and the climate of the local context need to be considered in developing relevant inclusive policy to enact effective geographical inclusive practices in rural Bangladeshi communities.     

The labor market returns to a for-profit college education

A lengthy literature estimating the returns to education has largely ignored the for-profit sector. In this paper, we estimate the earnings gains to for-profit college attendance using restricted-access data from the 1997 National Longitudinal Survey of Youth (NLSY97). Using an individual fixed effects estimation strategy that allows us to control for time-invariant unobservable characteristics of students, we find that students who enroll in associate's degree programs in for-profit colleges experience earnings gains of about 10% relative to high school graduates with no college degree, conditional on employment. Since associate's degree students attend for an average of 2.6 years, this translates to a 4% return per year of education in a for-profit college, slightly lower than estimates of returns for other sectors found in the literature.     

Absolute risk aversion and the returns to education

Individual absolute risk aversion is measured in a sample of 1583 male house-hold heads, using the data drawn from the 1995 wave of the Survey on the Income and Wealth of Italian households. This measure, conditional on household financial wealth, is used as an instrument for attained education in a standard log earnings equation. In line with most of the literature, I find that the gap between the IV and the OLS estimates of the returns to education is large.     

Addressing quality challenges in the private university sector in Bangladesh: from policy formulation to institutional implementation

Private higher education is growing, especially in developing and transitioning countries. Rapid growth frequently comes with concerns about quality. This article explores challenges and opportunities for higher education quality among private universities in Bangladesh. By presenting a vertical case study that explores interactions among actors at the institutional, national and global spheres, the authors argue for the need of developing quality standards that respond to the local realities of developing and transitioning countries. It is also argued that self-regulation among private universities is likely the most effective pathway for improvement. Bangladesh presents an ideal case for analysis given the rapid growth that higher education has experienced in the last 20 years in that country and given the current policy junction as Bangladesh begins to implement a newly developed quality assurance system. Other countries in the region in early stages of developing quality assurance and accountability systems may benefit from the findings of this study.     

Estimate of the private return on education in Indonesia: Evidence from sibling data

This study reexamines the return on education (ROE) in Indonesia to solve the puzzle between the high ROE from previous studies and the low enrollment rate for higher education by taking into account endogeneity and sample selectivity issues. This study finds the OLS estimates of ROE in between 10% and 12%. After controlling for unobserved family background using sibling data, the Household Fixed Effect estimate indicates ROE reduces from 10.8% to 5%. This study argues ROE is not as high as previously estimated and may explain why the enrollment rate for college has been stagnating in Indonesia.     

远程高等教育收益的部门和地区差异分析

本研究采用一项全国范围的入户调查数据,使用经济学中经典的明瑟收入方程实证探究学习者通过远程高等教育获得的收益在部门和地区层面的差异。实证研究结果显示:非公共部门的远程高等教育收益显著高于公共部门的远程高等教育收益,这说明远程高等教育具有明显的人力资本特征。在地区层面,西部地区的教育收益最高,这进一步支持了前期的相关研究,即远程高等教育对经济弱势群体的收入促进作用更大。     

Disability and returns to education in a developing country

In this paper, we estimate wage returns to investment in education for persons with disabilities in Nepal, using information on the timing of being impaired during school-age years as identifying instrumental variables for years of schooling. We employ unique data collected from persons with hearing, physical, and visual impairments as well as nationally representative survey data from the Nepal Living Standard Survey 2003/2004 (NLSS II). After controlling for endogeneity bias arising from schooling decisions as well as sample selection bias due to endogenous labor participation, the estimated rate of returns to education is very high among persons with disabilities, ranging from 19.3 to 25.6%. The coexistence of these high returns to education and limited years of schooling suggest that supply side constraints in education to accommodate persons with disabilities and/or there are credit market imperfections. Policies to eliminate these barriers will mitigate poverty among persons with disabilities, the largest minority group in the world.     

The returns to education for opportunity entrepreneurs,necessity entrepreneurs,and paid employees

We assess the relevance of formal education on the productivity of the self-employed, distinguishing between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to education between these groups due to different levels of control over the use of their human capital. The analysis employs the German Socio-Economic Panel and accounts for the endogeneity of education and non-random selection. Results indicate that the returns to a year of education for opportunity entrepreneurs are similar to the paid employees’ rate of 8.8%, but 3 percentage points lower for necessity entrepreneurs. Pooling the two types of entrepreneurs tends to understate the value of education for opportunity entrepreneurs and may spark misguided hopes concerning necessity entrepreneurs. The results may also partly explain Europe/US differences in average entrepreneurial returns.     

Students’ expectations of the economic returns to college education: results of a controlled experiment

We report the results of an experiment designed to elicit students’ subjective beliefs about the economic returns to college education. An important feature of our experimental design is the inclusion of financial incentives for accurate reporting. We also consider the extent to which individuals’ beliefs about their own returns differ from their beliefs about the returns for others. The evidence shows that students do have a self-enhancement tendency, and this finding cannot be attributed to previously uncontrolled order effects. The evidence also indicates that there is no significant difference between beliefs elicited using hypothetical surveys or real financial incentives in the elicitation procedure. This finding suggests that economists’ reluctance to gather subjective data on earnings expectations may not be warranted.     

Variables affecting teachers' attitudes towards inclusive education in Bangladesh

Inclusive education is a worldwide reform strategy intended to include students with different abilities in mainstream regular schools. Evidence from previous research shows that success in implementing effective inclusive teaching practices in the school is contingent on teachers' positive attitudes towards inclusive education. This study was conducted in the context of primary education in Bangladesh aiming to examine variables influencing teachers' attitudes towards inclusion of students with disabilities in regular classrooms. Data for the study was collected from 738 teachers working in 293 government primary schools in Bangladesh. The results indicated that perceived school support for inclusive teaching practices and a range of demographic variables including previous success in teaching students with disabilities and contact with a student with a disability were associated with more positive attitudes of the teachers towards the inclusive education. The results are discussed with possible implications for educators, policy‐makers and international organisations working on the implementation of inclusive education.     

Challenges to prepare pre-service teachers for inclusive education in Bangladesh: beliefs of higher educational institutional heads

This paper reveals the beliefs of higher education institutional heads about the challenges they face in preparing pre-service teachers for inclusive education in Bangladesh. Semi-structured interviews were conducted with 22 institutional heads. Data were analysed by applying thematic analysis procedure. Challenges were found in four theme areas: attitudinal beliefs, academic challenges, challenges in practicum and challenges for beginning teachers. Lack of appropriate information in the teacher preparation curriculum, untrained teacher educators, limited resources, inappropriate teaching-learning approaches, insufficient practicum experiences, and large class sizes were some of the major challenges identified. Participants also identified some useful strategies to address the challenges which ranged from curriculum reform, emphasizing practicum more than theories, human resource development empowering institutional heads to implement inclusion and resource support. Implications of the findings for university educators are discussed.