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Human Capital whilst basic education is taken to mean primary schooling which allows for the acquisition of basic literacy and numeracy – the basic health and education package thus comprises goods and ser- vices which have strong public good characteristics and which tend to be inadequately provided through private markets – or a given level of expenditure, these interventions tend to have a rela- tively large impact on measures of health and education attainment Quantity versus Quality Traditional view of the role of state is to increase supply of education, often at fairly low level of quality One view: limited link between educational inputs, school quality and ed- ucational attainment – focus more on improving quality rather than on increasing the quantity of schooling – provide schools with greater incentives to improve quality Counter view:
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Unformatted text preview: statistical problems with trying to link education expendi-tures with educational attainment need for randomised trials, e.g., West-ern Kenya use NGOs to distribute textbooks to some schools but not to others focus of impact evaluation of education should be on earnings in later life and not just on test scores big literature in US on this and elsewhere Card and Krueger points to a positive effect of education on earnings highly sophisticated instrumentation techniques to deal with ability biases etc. identical twins Framework for Analysis Human capital multidimensional, covering a broad range of investments our focus on health and education broadly deFned Determinants of investments: parental characteristics hugely important Development Economics, LSE Summer School 2007 138...
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