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Human Capital – Strauss and Thomas: clear effects of education investments on health outcomes and of health investments on education outcomes Want to look at three critical issues in this literature (i) does increasing the supply of education improve education attainment – Duflo (ii) does increasing the supply of education lead to improvements in labour market outcomes – Duflo (iii) can investments in health affect education attainment – Kremer and Miguel Problems as regards (i) and (ii) – ability, liquidity constraints or parental characteristics may be driving the results Difficult to find exogenous sources of variation in education, i.e., standard problem in policy analysis Parental and community characteristics do not really work as instruments
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Unformatted text preview: because they also typically enter into education or wage equation Dif±cult to isolate the impact of an expansion of education – ideally want randomised trial which are very dif±cult to carry out in the real world Evidence Comparative Analysis Dreze and Sen: “Hunger and Public Action” – countries which put in greater investments in basic health and education see big returns in terms of poverty reduction and growth don’t have to wait for growth – investing early in human capital educa-tion/literacy – foundations of public action Evidence Development Economics, LSE Summer School 2007 139...
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