The income gap in cognitive skills in rural Pakistan

Economic Development and Cultural Change

Volumn 46, Issue 1, 1998, Pages 97-122

  Alderman, Harold ^a   Behrman, Jere R ^b   Khan, Shahrukh ^c   Ross, David R ^d   Sabot, Richard ^e  

^a WORLD BANK   (United States)

^b UNIVERSITY OF PENNSYLVANIA   (United States)

^c Sustainable Development Policy Institute Islamabad   (Pakistan)

^d BRYN MAWR COLLEGE   (United States)

^e WILLIAMS COLLEGE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EDUCATIONAL ATTAINMENT; EDUCATIONAL INEQUALITY; INCOME INEQUALITY; LOW INCOME POPULATION; SOCIOECONOMIC INDICATORS;

PAKISTAN;

EID: 0031448620     PISSN: 00130079     EISSN: None     Source Type: Journal    
DOI: 10.1086/452323     Document Type: Article

References (74)

1. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
2. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
3. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
4. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
5. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
6. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
7. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
8. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
9. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
10. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
11. A sampling of recent studies and surveys that emphasize the importance of schooling in developing countries includes Robert J. Barro, "Economic Growth in a Cross-Section of Countries," Quarterly Journal of Economics 106 (May 1991): 407-43; Jere R. Behrman, Human Resource Led Development? (New Delhi: Asian Regional Training and Employment Programme/International Labour Organization, 1990); Nancy Birdsall and Richard H. Sabot, "Virtuous Circles: Human Capital, Growth, and Equity in East Asia" (World Bank, Washington, D.C., 1994, mimieographed); Elizabeth M. King and M. Anne Hill, eds, Women's Education in Developing Countries: Barriers, Benefits, and Policies (Baltimore and London: Johns Hopkins University Press for the World Bank, 1993); John B. Knight and Richard H. Sabot, "Educational Policy and Labor Productivity: An Output Accounting Exercise," Economic Journal 385 (1987): 199-214; Robert E. Lucas, "On the Mechanics of Economic Development," Journal of Monetary Economics 21 (1988): 3-42; George Psacharopoulos, "Returns to Investment in Education: A Global Update," World Development 22 (September 1994): 1325-44; T. Paul Schultz, "Education Investments and Returns," Handbook of Development Economics, ed. Hollis Chenery and T. N. Srinivasan (Amsterdam: North-Holland, 1988); Lawrence H. Summers, "Investing in All the People," Quaid-i-Azam Lecture at the Eighth Annual General Meeting of the Pakistan Society of Development Economists, Islamabad, Pakistan, Pakistan Development Review, Papers and Proceeding 31, pt. 1 (Winter 1992): 376-93; United Nations Development Program, Human Development Report 1990 (New York: UNDP, 1990); and World Bank, World Development Report, 1990 (Oxford: Oxford University Press for the World Bank, 1990).
12. For older respondents, the estimated income coefficients may be biased away from zero, to the extent that current income is a function of the enhanced earning power conferred by higher levels of schooling.
13. See, e.g., Nancy Birdsall, "Public Inputs and Child Schooling in Brazil," Journal of Development Economics 18, no. 1 (May-June 1985): 67-86; and Jere R. Behrman, Masako Ii, and David Murillo, "How Family and Individual Characteristics Affect Schooling Demands in Urban Bolivia: Multiple Schooling Indicators, Unobserved Community Effects, Nonlinearities and Interactions" (UDAPE/Grupo Social, La Paz, 1995, mimeographed).
14. See, e.g., Nancy Birdsall, "Public Inputs and Child Schooling in Brazil," Journal of Development Economics 18, no. 1 (May-June 1985): 67-86; and Jere R. Behrman, Masako Ii, and David Murillo, "How Family and Individual Characteristics Affect Schooling Demands in Urban Bolivia: Multiple Schooling Indicators, Unobserved Community Effects, Nonlinearities and Interactions" (UDAPE/Grupo Social, La Paz, 1995, mimeographed).
15. These are the countries for which data are presented in World Bank, World Development Report, 1993 (Oxford: Oxford University Press for the World Bank, 1993). A number of problems in making income comparisons across countries and over time given existing data are discussed in T. N. Srinivasan, "Data Base for Development Analysis: An Overview," Journal of Development Economics 44 (June 1994): 3-26, and other articles in the same issues of that journal. These articles do not address explicitly the problems in comparing income distributions across countries, but the nature of these problems is similar, to the extent that the problems affect high- versus low-income households differentially across countries or over time.
16. These are the countries for which data are presented in World Bank, World Development Report, 1993 (Oxford: Oxford University Press for the World Bank, 1993). A number of problems in making income comparisons across countries and over time given existing data are discussed in T. N. Srinivasan, "Data Base for Development Analysis: An Overview," Journal of Development Economics 44 (June 1994): 3-26, and other articles in the same issues of that journal. These articles do not address explicitly the problems in comparing income distributions across countries, but the nature of these problems is similar, to the extent that the problems affect high- versus low-income households differentially across countries or over time.
17. These comments on what is known about rural poverty head counts and on recent changes in those head counts in Asian countries are based on Jere R. Behrman, "Rural Poverty in Asia," Asian Development Outlook, 1992 (Oxford: Oxford University Press for the Asian Development Bank, 1992).
18. Raghav Gaiha and Anil B. Deolalikar, "Persistent, Expected and Innate Poverty: Estimates for Semi-Arid Rural South India, 1975-84" Cambridge Journal of Economics 17 (December 1993): 409-21, e.g., present estimates from a 10-year panel for rural south India that the incidence of poverty is considerably less if transitory fluctuations across years are averaged out than if only 1 year of data is used.
19. This approach assumes that the relative contribution of parental assets to household income remains constant over time.
20. The gap measures the difference in average income for high- and low-income households as a percent of the high-income average. See table 3. For the 20-24-year age cohort, the calculation is (36.2 - 17.7)/36.2.
21. There are very few private schools in rural Pakistan, and none of our sample respondents attended private schools. The absence of private schools may reflect policies that subsidize public, but not private, schools. See Jere R. Behrman, Shahrukh Khan, David Ross, and Richard Sabot, "Low Schooling and Large Gender Gaps in Pakistan: Market Failure? Policy Failure?" (Bryn Mawr College, Bryn Mawr, Pa., 1993, mimeographed).
22. Mark R. Rosenzweig and Kenneth J. Wolpin, "Evaluating the Effects of Optimally Distributed Public Programs," American Economic Review 76 (June 1986): 470-87, model the problems with program evaluation if program choices are endogenous. Jere R. Behrman and Raaj Kumar Sah, "What Role Does Equity Play in the International Distribution of Aid?" in Economic Structure and Performance, ed., Moises Syrquin, Lance Taylor and Larry E. Westphal (New York: Academic Press, 1984); and Jere R. Behrman and Steven G. Craig, "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review 77 (March 1987): 37-49, have modeled the allocation of such public services among different constituencies (recipients) as reflecting the implicit constrained maximization of a governmental social welfare function that reflects productivity versus equity trade-offs. The application of this framework is summarized in this paragraph for Brazil (from Jere R. Behrman and Nancy Birdsall, "Implicit Equity-Productivity Tradeoffs in the Distribution of Public School Resources in Brazil," European Economic Review 32 [October 1988]: 1585-1601) and Mexico (from Alec Ian Gershberg and Til Schuermann, "Education Finance in a Federal System: Changing Investment Patterns in Mexico" [Cambridge, Mass.: National Bureau of Economic Research, 1994]). The cross-national estimates are in Schultz (n. 1 above).
23. Mark R. Rosenzweig and Kenneth J. Wolpin, "Evaluating the Effects of Optimally Distributed Public Programs," American Economic Review 76 (June 1986): 470-87, model the problems with program evaluation if program choices are endogenous. Jere R. Behrman and Raaj Kumar Sah, "What Role Does Equity Play in the International Distribution of Aid?" in Economic Structure and Performance, ed., Moises Syrquin, Lance Taylor and Larry E. Westphal (New York: Academic Press, 1984); and Jere R. Behrman and Steven G. Craig, "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review 77 (March 1987): 37-49, have modeled the allocation of such public services among different constituencies (recipients) as reflecting the implicit constrained maximization of a governmental social welfare function that reflects productivity versus equity trade-offs. The application of this framework is summarized in this paragraph for Brazil (from Jere R. Behrman and Nancy Birdsall, "Implicit Equity-Productivity Tradeoffs in the Distribution of Public School Resources in Brazil," European Economic Review 32 [October 1988]: 1585-1601) and Mexico (from Alec Ian Gershberg and Til Schuermann, "Education Finance in a Federal System: Changing Investment Patterns in Mexico" [Cambridge, Mass.: National Bureau of Economic Research, 1994]). The cross-national estimates are in Schultz (n. 1 above).
24. Mark R. Rosenzweig and Kenneth J. Wolpin, "Evaluating the Effects of Optimally Distributed Public Programs," American Economic Review 76 (June 1986): 470-87, model the problems with program evaluation if program choices are endogenous. Jere R. Behrman and Raaj Kumar Sah, "What Role Does Equity Play in the International Distribution of Aid?" in Economic Structure and Performance, ed., Moises Syrquin, Lance Taylor and Larry E. Westphal (New York: Academic Press, 1984); and Jere R. Behrman and Steven G. Craig, "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review 77 (March 1987): 37-49, have modeled the allocation of such public services among different constituencies (recipients) as reflecting the implicit constrained maximization of a governmental social welfare function that reflects productivity versus equity trade-offs. The application of this framework is summarized in this paragraph for Brazil (from Jere R. Behrman and Nancy Birdsall, "Implicit Equity-Productivity Tradeoffs in the Distribution of Public School Resources in Brazil," European Economic Review 32 [October 1988]: 1585-1601) and Mexico (from Alec Ian Gershberg and Til Schuermann, "Education Finance in a Federal System: Changing Investment Patterns in Mexico" [Cambridge, Mass.: National Bureau of Economic Research, 1994]). The cross-national estimates are in Schultz (n. 1 above).
25. Mark R. Rosenzweig and Kenneth J. Wolpin, "Evaluating the Effects of Optimally Distributed Public Programs," American Economic Review 76 (June 1986): 470-87, model the problems with program evaluation if program choices are endogenous. Jere R. Behrman and Raaj Kumar Sah, "What Role Does Equity Play in the International Distribution of Aid?" in Economic Structure and Performance, ed., Moises Syrquin, Lance Taylor and Larry E. Westphal (New York: Academic Press, 1984); and Jere R. Behrman and Steven G. Craig, "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review 77 (March 1987): 37-49, have modeled the allocation of such public services among different constituencies (recipients) as reflecting the implicit constrained maximization of a governmental social welfare function that reflects productivity versus equity trade-offs. The application of this framework is summarized in this paragraph for Brazil (from Jere R. Behrman and Nancy Birdsall, "Implicit Equity-Productivity Tradeoffs in the Distribution of Public School Resources in Brazil," European Economic Review 32 [October 1988]: 1585-1601) and Mexico (from Alec Ian Gershberg and Til Schuermann, "Education Finance in a Federal System: Changing Investment Patterns in Mexico" [Cambridge, Mass.: National Bureau of Economic Research, 1994]). The cross-national estimates are in Schultz (n. 1 above).
26. Mark R. Rosenzweig and Kenneth J. Wolpin, "Evaluating the Effects of Optimally Distributed Public Programs," American Economic Review 76 (June 1986): 470-87, model the problems with program evaluation if program choices are endogenous. Jere R. Behrman and Raaj Kumar Sah, "What Role Does Equity Play in the International Distribution of Aid?" in Economic Structure and Performance, ed., Moises Syrquin, Lance Taylor and Larry E. Westphal (New York: Academic Press, 1984); and Jere R. Behrman and Steven G. Craig, "The Distribution of Public Services: An Exploration of Local Governmental Preferences," American Economic Review 77 (March 1987): 37-49, have modeled the allocation of such public services among different constituencies (recipients) as reflecting the implicit constrained maximization of a governmental social welfare function that reflects productivity versus equity trade-offs. The application of this framework is summarized in this paragraph for Brazil (from Jere R. Behrman and Nancy Birdsall, "Implicit Equity-Productivity Tradeoffs in the Distribution of Public School Resources in Brazil," European Economic Review 32 [October 1988]: 1585-1601) and Mexico (from Alec Ian Gershberg and Til Schuermann, "Education Finance in a Federal System: Changing Investment Patterns in Mexico" [Cambridge, Mass.: National Bureau of Economic Research, 1994]). The cross-national estimates are in Schultz (n. 1 above).
27. N. Birdsall, C. Pinckney, and R. Sabot, "Inequality, Savings and Growth," (Williams College, Williamstown, Mass., 1995, mimeographed). The other side of this statement is that, if schooling were viewed only as an investment, households were risk neutral, and capital markets were perfect, household income would not affect schooling demands.
28. Better information regarding the expected rates of return to schooling may be valuable for at least two reasons: first, even in a static world, better information may lower the uncertainty and thus increase investments if households are risk averse; second, in the context of rapidly changing markets and technology, as some claim is appropriate for rural Pakistan, better information may permit a better assessment of how the distribution of returns to schooling is changing. If this distribution is shifting up, as conjectured by Richard Sabot, "Human Capital Accumulation in Post-Green Revolution Pakistan: A Progress Report," The Pakistan Development Review 31, pt. 1 (Winter 1992): 449-90 (and as seems consistent with some other studies of developing agriculture, see, e.g., Andrew Foster and Mark R. Rosenzweig, "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy 103 [December 1995]: 1176-1209), better information would imply greater schooling demands, even if there were no risk aversion.
29. Better information regarding the expected rates of return to schooling may be valuable for at least two reasons: first, even in a static world, better information may lower the uncertainty and thus increase investments if households are risk averse; second, in the context of rapidly changing markets and technology, as some claim is appropriate for rural Pakistan, better information may permit a better assessment of how the distribution of returns to schooling is changing. If this distribution is shifting up, as conjectured by Richard Sabot, "Human Capital Accumulation in Post-Green Revolution Pakistan: A Progress Report," The Pakistan Development Review 31, pt. 1 (Winter 1992): 449-90 (and as seems consistent with some other studies of developing agriculture, see, e.g., Andrew Foster and Mark R. Rosenzweig, "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy 103 [December 1995]: 1176-1209), better information would imply greater schooling demands, even if there were no risk aversion.
30. The text is written as if households (parents) make the schooling investment decisions, which probably is plausible for the schooling levels being considered, given the nature of society in rural Pakistan. If children themselves made the marginal schooling decisions, however, this same association might hold because the children's preferences may be shaped considerably by those of their parents.
31. The ordered probit estimates control for the self-selection into schooling implied by the probit estimates of the probability of starting school.
32. Beyond directly influencing cognitive skills, school quality and the home learning environment may also increase the demand for schooling by increasing the expected benefits from schooling.
33. The predicted cognitive skills of an average individual will not, in general, be the average cognitive skills of all individuals, unless cognitive skills are a linear function of all observed characteristics (and our estimates incorporate a number of nonlinearities).
34. In the only province not represented, Baluchistan, the rural population constitutes a small portion of its overall population.
35. Children in many of the remaining villages have a school available in a nearby village. However, there is no way to sort out the degree to which village characteristics may have influenced the location of a nearby school.
36. The actual distance was doubled if the entire distance was on unpaved roads and was increased by a factor of 1.5 if the trip was on mixture of paved and unpaved roads.
37. Estimates of real permanent household income at the time older respondents were of school age for Dir are significantly greater than those for the other regions. When the sample is limited to the 20-24-year age cohort, as we do below, there is no significant regional difference in permanent household incomes.
38. Schooling often starts at an older age in rural Pakistan than it does in high-income countries. Moreover, schooling progress is slowed down by grade repetition. Therefore, students tend to be older when they complete each schooling level.
39. Useable observations contain nonmissing values for all the variables used in the schooling-demand and cognitive-skills production functions.
40. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
41. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
42. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
43. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
44. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
45. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
46. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
47. If there are important liquidity constraints, current income at the time of the schooling investments might be relatively important, but this information is not included in the data set so we cannot explore this possibility. Other recent studies of rural areas in south Asia (including Pakistan) suggest that there are considerable possibilities for smoothing expenditures across households and over time, though with some limitations within agricultural production cycles (e.g., Harold Alderman, "Saving and Economic Shocks in Rural Pakistan," Journal of Development Economics 51 [1996]: 343-66; Harold Alderman and Marito Garcia, Poverty, Household Food Security, and Nutrition in Rural Pakistan, Research Report 96 [Washington, D.C.: International Food Policy Research Institute, 1993]; Harold Alderman and Christine Paxson, "Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries," Policy Research Working Paper 1008 [World Bank, Washington, D.C., 1992]; Jere R. Behrman, Andrew Foster and Mark R. Rosenzweig, "Dynamic Savings Decisions in Agricultural Environments with Incomplete Markets," Journal of Business and Economic Statistics [in press]; Jere R. Behrman, Andrew Foster, and Mark R. Rosenzweig, "The Dynamics of Agricultural Production and the Calorie-Income Relationship: Evidence from Pakistan," Journal of Econometrics 77 [1996]: 187-207; Mark R. Rosenzweig and Oded Stark, "Consumption Smoothing, Migration, and Marriage: Evidence from Rural India," Journal of Political Economy 97 [August 1989]: 905-26; Mark R. Rosenzweig and Kenneth J. Wolpin, "Credit Market Constraints and the Accumulation of Durable Production Assets in Low-Income Countries: Investments in Bullocks," Journal of Political Economy 101, no. 2 [April 1993]: 223-45; and Robert Townsend, "Risk and Insurance in Village India," Econometrica 62 [May 1994]: 539-92).
48. We have investigated the substantial gender gap in cognitive skills in Harold Alderman, Jere R. Behrman, David Ross, and Richard Sabot, "Decomposing the Gender Gap in Cognitive Skills in a Poor Rural Economy," Journal of Human Resources 31 (Winter 1995): 229-54.
49. We consider the substantial regional gaps in cognitive skills in Harold Alderman, Jere R. Behrman, Shahrukh Khan, David Ross, and Richard Sabot, "Decomposing the Regional Gap in Cognitive Skills in Rural Pakistan," Journal of Asian Economics 1 (Spring 1996): 49-76.
50. We verified in villages in which we administered the school survey that the proxy was an accurate indicator of the year in which the school was first available.
51. As discussed in Subsec. IV.A, this appears to reflect regional differences in the distribution of schools rather than any direct effect of household income on the supply of schools.
52. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood Malnutrition in a Low Income Country," Review of Economics and Statistics 77 [February 1995]: 156-69; and John B. Knight and Richard H. Sabot, Education, Productivity, and Inequality: The East African Natural Experiment [New York: Oxford University Press, 1990]). We assume that cognitive skills so measured, perhaps several years after the completion of schooling, reflect the cognitive skills at the time of termination of school. That is, there is neither subsequent further augmentation nor depreciation in cognitive skills. Our preliminary estimates indicate that time and experience subsequent to schooling do not affect cognitive achievement in our data.
53. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood Malnutrition in a Low Income Country," Review of Economics and Statistics 77 [February 1995]: 156-69; and John B. Knight and Richard H. Sabot, Education, Productivity, and Inequality: The East African Natural Experiment [New York: Oxford University Press, 1990]). We assume that cognitive skills so measured, perhaps several years after the completion of schooling, reflect the cognitive skills at the time of termination of school. That is, there is neither subsequent further augmentation nor depreciation in cognitive skills. Our preliminary estimates indicate that time and experience subsequent to schooling do not affect cognitive achievement in our data.
54. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood
55. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood Malnutrition in a Low Income Country," Review of Economics and Statistics 77 [February 1995]: 156-69; and John B. Knight and Richard H. Sabot, Education, Productivity, and Inequality: The East African Natural Experiment [New York: Oxford University Press, 1990]). We assume that cognitive skills so measured, perhaps several years after the completion of schooling, reflect the cognitive skills at the time of termination of school. That is, there is neither subsequent further augmentation nor depreciation in cognitive skills. Our preliminary estimates indicate that time and experience subsequent to schooling do not affect cognitive achievement in our data.
56. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood Malnutrition in a Low Income Country," Review of Economics and Statistics 77 [February 1995]: 156-69; and John B. Knight and Richard H. Sabot, Education, Productivity, and Inequality: The East African Natural Experiment [New York: Oxford University Press, 1990]). We assume that cognitive skills so measured, perhaps several years after the completion of schooling, reflect the cognitive skills at the time of termination of school. That is, there is neither subsequent further augmentation nor depreciation in cognitive skills. Our preliminary estimates indicate that time and experience subsequent to schooling do not affect cognitive achievement in our data.
57. Since tests were administered only to those with at least 4 years of schooling, scores had to be imputed for those with less schooling. Those with no education were assigned scores of zero. (The scores of a subsample of the uneducated who were given the tests confirmed the appropriateness of this assignment.) The means and standard deviations for cognitive achievement in table 5 include the scores for these individuals. Respondents with 1-3 years of schooling and qualified respondents who failed to take the test are kept in the sample only for the estimates of the schooling-attainment relations. Both tests were used successfully in research on human capital accumulation and the labor market in east and west Africa (e.g., Maurice Boissiere, John B. Knight, and Richard H. Sabot, "Earnings, Schooling, Ability and Cognitive Skills," American Economic Review 75 [1985]: 1061-30; Jere R. Behrman and Victor Lavy, "Child Health and Schooling Achievement: Association, Causality, and Household Allocations," World Bank Living Standards Measurement Study Paper no. 104 [Washington, D.C.: World Bank, 1994]; Paul Glewwe, "The Relevance of Standard Estimates of Rates of Return to Schooling for Education Policy: A Critical Assessment," Journal of Development Economics 51 [December 1996]: 267-90; Paul Glewwe and Hanan Jacoby, "Student Achievement and Schooling Choice in Low Income Countries: Evidence from Ghana," Journal of Human Resources 29 [Summer 1994]: 842-64 ; Paul Glewwe and Hanan Jacoby, "An Economic Analysis of Delayed Primary School Enrollment and Childhood Malnutrition in a Low Income Country," Review of Economics and Statistics 77 [February 1995]: 156-69; and John B. Knight and Richard H. Sabot, Education, Productivity, and Inequality: The East African Natural Experiment [New York: Oxford University Press, 1990]). We assume that cognitive skills so measured, perhaps several years after the completion of schooling, reflect the cognitive skills at the time of termination of school. That is, there is neither subsequent further augmentation nor depreciation in cognitive skills. Our preliminary estimates indicate that time and experience subsequent to schooling do not affect cognitive achievement in our data.
58. [(3.88 + 3.52) - (2.00 + 1.47)]/(3.88 + 3.52).
59. J. C. Raven, Guide to the Coloured Progressive Matrices (Sets A, Ab, B) (London: Lewis, 1956). An appendix in Knight and Sabot, Education, Productivity, and Inequality: The East African Natural Experiment, provides some examples from this test.
60. J. C. Raven, Guide to the Coloured Progressive Matrices (Sets A, Ab, B) (London: Lewis, 1956). An appendix in Knight and Sabot, Education, Productivity, and Inequality: The East African Natural Experiment, provides some examples from this test.
61. For some examples of economic studies, see the studies in n. 28. For examples in other literatures, see C. Nokes, S. M. Grantham-McGregor, A. W. Sawyer, E. S. Cooper, and D. A. P. Bundy, "Parasitic Helminth Infection and Cognitive Function in School Children," Proceeding of the Royal Society London B 247 (February 22, 1992): 77-81, and the references therein.
62. For example, see Mohammed Aliuddin Khan, "Reports and Papers Prepared Under the Provisions of the HRD Component of the Pakistan Project: Comments and Queries" (Johns Hopkins University, Baltimore, 1993, mimeographed).
63. Because of the small number of women in the 30-44-year age cohort for whom a middle school was available, we find no variation in our distance proxy for this group.
64. We are not able to explore the determinants of middle schools, because so few villages in our samples have such schools. However, because middle schools tend to be concentrated in district centers, our initial conjecture is that household and village characteristics are less likely to affect the location of middle than of primary schools.
65. Other specifications, by use of the variables in table 4, were also explored (as well as still other variables, such as an indicator of the concentration of land holdings as suggested by Mark R. Rosenzweig and Robert E. Evenson, "Fertility, Schooling and the Economic Contribution of Children in Rural India," Econometrica 45 [1977]: 1065-79), but they neither added to the explanatory power nor substantially altered the estimates of the relations that are presented here.
66. The Wald statistic for the four village characteristic variables becomes 6.3 for boys and 6.8 for girls.
67. The starting-school probits are used as controls for selectivity into schooling, and the estimation procedure controls for the truncation implied by the attainment of respondents still in school.
68. Standard errors are adjusted with White's correction for heteroskedasticity resulting from village cluster effects. Unless otherwise qualified, we adopt the convention of using the term "significantly" to refer to point estimates that are significantly nonzero at the standard 5% level.
69. We find no evidence of significant effects for maternal schooling. But this probably does not reveal anything about the possible importance of maternal schooling because the percentage of respondents whose mothers had at least primary schooling or more is very small - only 1.5% in the younger cohort and 0.5% in the older cohort (table 3).
70. 2 is 6.47 for math and 14.75 for reading. Behrman and Lavy (n. 28 above) similarly find for Ghana that household variables tend to affect reading and school variables tend to affect mathematics.
71. Primary schools were less available for low-income households in the 30-44-year age cohort.
72. The calculation is [(51.5 - 44.1) + (16.8 - 13.8) + (12.8 - -3.3)]/ 49.4.
73. The sum of the direct and the income-associated effects exceed 100% for the younger cohort because of simulated negative effect of school availability.
74. However, we qualify these estimates, as noted, because income may be capturing some income-associated household characteristics as well as direct effects in our cognitive achievement production-function estimates.