Enhancing the public provision of education

Educational systems in developing countries show widespread problems that hinder delivering the service in adequate quantity and quality, as well as equity issues are still unresolved in many cases. The paper provides a flexible framework to deal with educational provision and public policies in developing countries, linking the impact of quality-quantity-equity of educational policies on labour markets. It adds to the education production function and human capital accumulation theoretical literature in which it includes the presence of inefficiencies, modelling the role of educational policies on tacking at them. Educational policies designing is discussed, which leads to suggest that more sophisticated educational policies (“multiple targets”) may increase the efficiency of the expenditure in education in terms of the quantity-quality of the output (skills).

Enhancing the public provision of education: the economics of education reform in developing countries

The comprehensive evaluation of education reforms in developing countries needs the consideration of the 'triangle'' quality-quantity-equity in the short, medium and long term, in a broader context than just the education system itself. There is no simple ‘recipe'' to enhance education, though some general results are found by means of simulation exercises. First, it is expensive and anti-economical to rely on a reform consisting in just more resources, since returns are decreasing. However, focused policies may improve the returns to the expenditure. Second, the timing of the reform matters: policies that are more productive in the short term may be less convenient than competing alternatives in the longer term. Third, effects of the reform are cumulative, and to evaluate it by its generally modest short-term merits may put it at risk of reversion, and/or hinder future investment in the sector