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Analyzing Class Categorization for Policy Solutions in Education

This study explores the analytical usefulness of class categorization in identifying policy solutions for various education-related issues. It examines the relevance of focusing on the middle class and suggests alternative policies that prioritize the lower class. The study also discusses the potential impact of reallocating education expenditure and implementing selective cost recovery and student loans.

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Analyzing Class Categorization for Policy Solutions in Education

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  1. LEO 2011 Education points George Psacharopoulos gpsach@rcn.com

  2. Illustrative statistics To what class do they really relate? • Middle? • Upper? • Lower?

  3. Development Indicators, 2009The World Bank • LAC, female 15-24 unemployment 21% • LAC, population under $2/day 17% Gini: • Brazil .55 • Chile .52 • Ecuador .54

  4. LAC, Child labor, boys 7-14 • Peru 26% • Bolivia 24% Primary school completion • Nicaragua, boys 70%

  5. Children out of school 6-11 (%)

  6. Question What is the analytical usefulness of class categorization in defining policy to solve the above problems???

  7. Middle class focus? • Descriptive rather than analytical • Elastic • Categorical rather than continuous • End up with real variables • Tautology rather than cause-effect • Circularity • Policy relevance?

  8. Better focus on lower class? • Design policies to upgrade to middle class • Invest in preschool – Highest social returns • (Lack of incidence studies) • Reallocate public education expenditure from the middle to the lower class • Selective cost recovery in higher education • Tuition fees for the rich cum subsidies for the poor • Expand student loans – Efficient, equitable

  9. Education returns and the cycle (%) Returns to education 10 Economic growth 2010 1965

  10. LEO 2012+ Education!

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