Education and Development News and Research 107

World Bank to Assist Government of Georgia in Education Sector Reformation

0000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000aKotor.jpgGeorgian Minister of Education Mikheil Batiashvili and Deputy Education Minister Irina Abuladze have discussed key directions of reforms in the education sector at the meeting with World Bank regional director Mercy Tembon. The Education Minister stressed the WB contribution to the development of Georgia and expressed hopes that the World Bank will provide support in planning and implementing the education system reformation. The parties discussed the importance of human capital development in the economic development context and the needs of the education system reformation in this respect. Mercy Tembon confirmed that in the coming years the WV will prioritize to assist the Government of Georgia in the education sector reformation. “World Bank will be one of the key partners of Government of Georgia in implementing the multiyear plan as part of the education sector reformation and strategy. At the meeting the parties agreed to move to the joint and active working regime as part of workgroups of WB and Georgian Education ministry.

World Bank helps youth of Timor-Leste gain essential skills with education project  The Second Chance Education Project is expected to be crucial for the accumulation of human capital and for building the institutions and social capital needed for long-term economic development and poverty reduction…

Universities should enjoy more autonomy … According to Senior Economist Dilip Parajuli from the World Bank, Việt Nam ranked 84th out 137 countries and territories for its higher education system, with only Hà Nội National University and HCM City University being featured in the list of the top 1,000 universities worldwide and five institutions named in the top 400 Asian universities…

Upping the Ante: The Equilibrium Effects of Unconditional Grants to Private Schools This paper tests for financial constraints as a market failure in education in a low-income country. In an experimental setup, unconditional cash grants are allocated to one private school or all private schools in a village. Enrollment increases in both treatments, accompanied by infrastructure investments. However, test scores and fees only increase in the setting of all private schools along with higher teacher wages. This differential impact follows from a canonical oligopoly model with capacity constraints and endogenous quality: greater financial saturation crowds-in quality investments. The findings of higher social surplus in the setting of all private schools, but greater private returns in the setting of one private school underscore the importance of leveraging market structure in designing educational subsidies.

Human-Capital Externalities in China This paper provides evidences of heterogeneous human-capital externality using CHIP 2002, 2007 and 2013 data from urban China. After instrumenting city-level education using the number of relocated university departments across cities in the 1950s, one year more city-level education increases individual hourly wage by 22.0 percent, more than twice the OLS estimate. Human- capital externality is found to be greater for all groups of urban residents in the instrumental variable estimation.

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Categories China, Human capital, PISA, Returns to education, TIMSS

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