Economic Literacy: An International Comparison

Many studies show that most people are not financially literate and are unfamiliar with even the most basic economic concepts. However, the evidence on the determinants of economic literacy is scant. This paper uses international panel data on 55 countries, merging indicators of economic literacy with a large set of macroeconomic and institutional variables. Results show that there is substantial heterogeneity of financial and economic competence across countries, and that human capital indicators (PISA test scores and college attendance) are positively correlated with economic literacy. Furthermore, inhabitants of countries with more generous social security systems are generally less literate, lending support to the hypothesis that the incentives to acquire economic literacy are related to the amount of resources available for private accumulation.Economic Literacy, Human Capital, Social Security

Schooling in Developing Countries: The Roles of Supply, Demand and Government Policy

In developing countries, rising incomes, increased demand for more skilled labor, and government investments of considerable resources on building and equipping schools and paying teachers have contributed to global convergence in enrollment rates and completed years of schooling. Nevertheless, in many countries substantial education gaps persist between rich and poor, between rural and urban households and between males and females. To address these gaps, some governments have introduced school vouchers or cash transfers programs that are targeted to disadvantaged children. Others have initiated programs to attract or retain students by expanding school access or by setting higher teacher eligibility requirements or increasing the number of textbooks per student. While enrollments have increased, there has not been a commensurate improvement in knowledge and skills of students. Establishing the impact of these policies and programs requires an understanding of the incentives and constraints faced by all parties involved, the school providers, the parents and the children. The chapter reviews the economic literature on the determinants of schooling outcomes and schooling gaps with a focus on static and dynamic household responses to specific policy initiatives, perceived economic returns and other incentives. It discusses measurement and estimation issues involved with empirically testing these models and reviews findings. Governments have increasingly adopted the practice of experimentation and evaluation before taking steps to expand new policies. Often pilot programs are initiated in settings that are atypically appropriate for the program, so that the results overstate the likely impact of expanding the program to other settings. Program expansion can also result in general equilibrium feedback effects that do not apply to isolated pilots. These behavioral models provide a useful context within which to frame the likely outcomes of such expansion.

Early childhood development in Latin America and the Caribbean

There is considerable evidence that young children in many developing countries suffer from profound deficits in nutrition, health, fine and gross motor skills, cognitive development, and socio-emotional development. Early childhood development (ECD) outcomes are important markers of thewelfare of children. In addition, the deleterious effects of poor outcomes in early childhood can be long-lasting, affecting school attainment, employment, wages, criminality, and measures of social integration of adults. This paper considers the theoretical case to be made for investments in early childhood, selectively reviews the literature on the impact of ECD programs in the United States, discusses the evidence from Latin America and the Caribbean, and makes suggestions for future research. The focus is on the relation between outcomes in early childhood and measures of household socioeconomic status, child health, and parenting practices, as well as on the impact of specific policies and programs. The knowledge base on early childhood outcomes is still thin in Latin America and the Caribbean. There are therefore very high returns to comparative descriptive analysis in the region, as well as to careful evaluations of the impact of various programs.Educational Sciences,Primary Education,Early Childhood Development,Street Children,Youth and Governance

Why Teach History of Economic Thought Today?

Shorter undergraduate studies, increasing specialization and the priority of applied research in Economics represent threats for the History of Economic Thought (HET) as an integral part of the training of young economists. There are mostly sociological arguments to reduce or eliminate HET courses and contents to which we try to respond in this text. We advance that HET allows developing valuable skills that might help overcome the criticisms against Economics due to its alleged incapacity to offer solutions in times of crisis and to its fascination with quantification and technique. In this context, HET appears as a space for thought, self-criticism and introspection in which new economists may understand that Economics is a process and not a product giving them the abilities necessary to participate in the extended present of their discipline.history of economic thought, teaching in economics, economic theory

The University-Commune

In this new book we return to the challenge of deepening the task to the point of imagining the university formed by commoner university students. It is a turn, a new place from which to name and reconsider community management and action from a sense of co-responsibility for the commons that we must guarantee so that the common project prevails and achieves long-term self-sustainability.This is what the seven articles in this book are about, which calls into question what it means for the university to be and act according to economic principles and logics (giving, receiving, undertaking), social (distribution of roles and benefits) and policies (agreements, consensus, participation and assignment of responsibilities) of the commune. The institutional dimension is important but the vitality, the sense of belonging and the profound strength of the Salesian university project depend much more on the commons logic. Feeling of the commons is not a possibility among many others. We are convinced that, in order to take on this project, it is necessary to transcend institutional, business logic and state regulations. Therefore, the university-commune is the way and, perhaps, the only one possible. University and Common Goods Research Group Universidad Politécnica Salesian

Reducing Poverty in Latin America and the Caribbean

Poverty, Latin American, Caribbean

South American Expert Roundtable : increasing adaptive governance capacity for coping with unintended side effects of digital transformation

This paper presents the main messages of a South American expert roundtable (ERT) on the unintended side effects (unseens) of digital transformation. The input of the ERT comprised 39 propositions from 20 experts representing 11 different perspectives. The two-day ERT discussed the main drivers and challenges as well as vulnerabilities or unseens and provided suggestions for: (i) the mechanisms underlying major unseens; (ii) understanding possible ways in which rebound effects of digital transformation may become the subject of overarching research in three main categories of impact: development factors, society, and individuals; and (iii) a set of potential action domains for transdisciplinary follow-up processes, including a case study in Brazil. A content analysis of the propositions and related mechanisms provided insights in the genesis of unseens by identifying 15 interrelated causal mechanisms related to critical issues/concerns. Additionally, a cluster analysis (CLA) was applied to structure the challenges and critical developments in South America. The discussion elaborated the genesis, dynamics, and impacts of (groups of) unseens such as the digital divide (that affects most countries that are not included in the development of digital business, management, production, etc. tools) or the challenge of restructuring small- and medium-sized enterprises (whose service is digitally substituted by digital devices). We identify specific issues and effects (for most South American countries) such as lack of governmental structure, challenging geographical structures (e.g., inclusion in high-performance transmission power), or the digital readiness of (wide parts) of society. One scientific contribution of the paper is related to the presented methodology that provides insights into the phenomena, the causal chains underlying “wanted/positive” and “unwanted/negative” effects, and the processes and mechanisms of societal changes caused by digitalization

THE DETERMINANTS OF HUMAN CAPITAL FORMATION DURING THE EARLY YEARS OF LIFE: THEORY, MEASUREMENT, AND POLICIES

In this paper, I discuss a research agenda on the study of human capital accumulation in the early years, with a particular focus on developing countries. I discuss several methodological issues, from the use of structural models, to the importance of measurement and the development of new measurement tools. I present a conceptual framework that can be used to frame the study of human capital accumulation and view the current challenges and gaps in knowledge within such an organizing structure. I provide an example of the use of such a framework to interpret the evidence on the impacts of an early years intervention based on randomized controlled trial

The Occupations and Human Capital of U.S. Immigrants

This paper estimates the multi-dimensional human capital endowments of immigrants by characterizing their occupational decisions. This approach allows for estimation of physical skill and cognitive ability endowments, which are difficult to measure directly. Estimation implies that immigrants as a whole are abundant in cognitive ability and scarce in experience/training and communication skills. Counterfactual estimates of the wage impacts of immigration are skewed: the largest gain from preventing immigration is 3.2% higher wages, but the largest loss is 0.3% lower wages. Crowding of immigrants into select occupations plays a minor role in explaining these impacts; occupations’ skill attributes explain the bulk.Immigration; occupations; wages

The Measurement of Educational Inequality: Achievement and Opportunity

This paper proposes two related measures of educational inequality: one for educational achievement and another for educational opportunity. The former is the simple variance (or standard deviation) of test scores. Its selection is informed by consideration of two measurement issues that have typically been overlooked in the literature: the implications of the standardization of test scores for inequality indices, and the possible sample selection biases arising from the Program of International Student Assessment (PISA) sampling frame. The measure of inequality of educational opportunity is given by the share of the variance in test scores that is explained by pre-determined circumstances. Both measures are computed for the 57 countries in which PISA surveys were conducted in 2006. Inequality of opportunity accounts for up to 35 percent of all disparities in educational achievement. It is greater in (most of) continental Europe and Latin America than in Asia, Scandinavia, and North America. It is uncorrelated with average educational achievement and only weakly negatively correlated with per capita gross domestic product. It correlates negatively with the share of spending in primary schooling, and positively with tracking in secondary schools.educational inequality, educational achievement, inequality of opportunity