Kathmandu University School of Education

PhD and M.Phil. Fall semester (Aug2012- Jan 2013)

EDUC 544- Economics of Education (3)

Introduction There is a close relationship between education and economic development. Education produces human resources for development, and hence the need for understanding the current situation and current education issues, and also the kind of education we need to pursue, In general, citizens in developed countries have attained quality education where illiteracy is virtually wiped out and significant percentage of men and women have attained post secondary education. Unlike in developing countries where unemployment rate is high and per capita income is miserably low, people in developed countries enjoy nearly full employment and relatively high labor productivity and also high income. Developed countries have also come a long way in achieving social justice and equity as far as access to quality education is concerned. There is no dispute about the need for education for every citizen in both developing and developed countries. Issues remain unsolved, however, as to who benefits the most from investment in education and who should pay for it. Expectations placed on education in recent decades are rather high. The world community views primary level education is the right of every child although it is not exactly clear how many years of primary or elementary level of education should consist of. A state expects to produce enlightened citizens and skilled human resource to meet the countrys development disciplines through education. Parents expect their children to receive higher education, most often in the technical field, and draw attractive amount of salary. The student himself/herself aspires to meet the expectations of societies; families and his/her own needs. Just like any other commodities, education is also influenced by market forces. In most societies students can choose to attend a public or private school. Within public or private system of education there are a range of fields to choose from. The cost of education services also varies widely at times making it very difficult for students to choose an appropriate institution and an appropriate field of study when it comes to higher education. Course objective

The main objective of the course is to enable the students in understanding the relations between education and economic development at the macro level and returns to investment at the micro level. Specific objectives are: Understand the nature of and the need for development economics; Understand the role of education in human capital development Understand the current education issues Assess the impact of human capital on economic growth Understand the production function and rate of returns to investments in education Learn about the dynamics of environment and development Gain an insight into resource allocation and financing education; and Learn about the latest developments in educational reform policies. Process of teaching and learning The course facilitator will refer assorted reading materials to the students. Besides, the course contents, plans and government budget on education with specific focus on SSR will be discussed. The facilitator will be assisted by a guest facilitator. Constructivism modality will be the pedagogic process. Date/ Relevant Reading materials Facilitator 1. Introduction and overview of the course 22 Aug Brewer, D. J. &McEwan, P. J. (2010) Economics of education. Basic concepts of economics of education 2. Nature of Development Economics 29 Aug/1 Education and Socio-Economic Development. Externalities of Education 3. Benefits of Education: 5 Sept/2 Education as Social/ Private Investment Relationships between Education and Economic Growth Contribution from Public, Private and Development Partners 4. Benefits of Education: 12 Sept/2 (a) Economic of development-Michael P. Todaro (b) public goods, externalities and education- Bruno S. Frey (a)Economics of Education: Research and Studies- G. Psacharopoulos (b) The Hand book of Economics of Education- Eric Hanushek (C) worldbnk.org (d) iiep.unesco.org. Same as above Contents

 Returns to Education Analysis of Earning 5. Education and Employment Labour Market Job information and its trends

19 Sept/1

6. Education and Employment contd. Unemployment Brian Drain

26 Sept/1

7. Human Capital Formation Investment in education Knowledge economy Skill formation

3 Oct/2

(a) Economics of Education Research and Studies- G. Psacharopoulos (b) worldbank.org (c) Management of education(d) linking education policy to labour market outcomes- Tazeen Fasih (a) Economics of education research and studies- G. Psacharopoulos (b) worldbank.org (c)Beware the reverse brain drain to India and China- Vivek Wadwa (d) ILO publication (a) Economics of education research and studies- G. Psacharopoulos (b)The Knowledge Economy and Education and Training in South Asia. The world bank

8. Financing of Education Public Finance of Education Partnership in Financing

10 Oct/1 (mid term)

9. Financing of Education Alternative Approaches of Financing Pathway to Innovative Financing

31 Oct/1

(a) Financing and financial management of education- iiep publication (b) Financing school in Nepal: Models for state and non- state partnershipDevi Prasad Prasai. (a) Alternative approaches to measuring the cost of educationWilliam Duncombe (b) The Economics and financing education of a systems approach- Roe L. johns (alternative models for school financing) (d) Financing of education- Dr. Bashudev kafle and others. (e) innovative Financing for development- Philippe Douste- Blazy (f) Innovative Financing of educationESP working paper

10. Education, Inequality, and Poverty 7 Nov/1 Equitable Access to Learning and Life Skill Programs Equity Consideration in Financing of Education Access to Quality and Relevant Education

11. Education, Inequality, and Poverty contd. Gender disparities and their elimination Positive discrimination in Education. 12. Planning Model Various models of planning East Asian Miracle 13. MTEF Medium Term Expenditure Frame Work Planning and its Budgetary Linkages 14. Capital Market and Education Global Economic Recession and Its Effect in Education

21 Nov/1

(a) Access in emergency: A case study of Pakistan (b) Financing and Financial management of education (c) Dakar Frame Work (d) Equity and Quality assurance: a marriage of two minds- Michaela Martin (e) Gender and social exclusion: iiep publication Same as above

28 Nov/1

(a) Economics of education- G. Psacharopolous (b) East Asian Miracle (a) npc.gov.np- national planning commission

5 Dec/1

12 Dec/2

15. Cost Analysis Types of cost Cost Sharing Cost Reducing Measures Cost Effectiveness and Implications in Education

19 Dec/2

Its

(a) AusAid education facility- current issue in education: 2009 (b) capital market: meaning and importance (c) The global recession: the impact on education in developing countries: UNESCO publications (a) Finaning and financial management of education (b) G. Psacharopolous-Educational Cost- Economics of Education (c) Cost analysis in education- M. Woodhall (d) Tips for financing of EducationUniversity of Buffalo (e) Cost sharing in education- DFID publication (f) Cost benefit Analysis in

16. Differences in Enrollment Characteristics 26 Dec/1 and Earning

Educational Planning- Maureen Woodhall (g) Decentralization of EducationHarry Anthony Patrinos and David (h) Economics of EducationPlanning Model (Cost effectiveness analysis in Education- page-348Psacharopoulos (a) Handbook of the economics of education: Eric Hanushek (b) CBS: Nepal living standard surcey (c) CBS: Nepal Labour Force Survey

Evaluation Scheme Presentation Group Work Mid-term Exam Review Paper Critique on selected topic or book chapter Final Exam 10% 10% 10% 15% 5% 50%

Students will be required to make presentations on the assigned topics. A group is formed for group work. Students will have to visit organizations and offices such as Finance Ministry, Ministry of Education, private schools, public schools, NGOs and other relevant school to collect information on economic trends and their influence in education. For the group work the students will be divided into different groups and will be asked to answer questions related to the topic presented in the class. Relevant Materials 1. Bray, mark (1996), counting the full cost: parental and community financing of education in east Asia, Washington, D.C.: the international Bank for reconstruction and development/ The world Bank 2. Harrold, Ross (1998), Resources in education, Australia, The Australian council for Educational Research ltd. 3. National Planning Commission (2002), Tenth plan, Kathmandu, Author 4. National Planning Commission for UNESCO (2003), Education for All National Plan for action Nepal (2001-2015), Kathmandu, Author

5. Thapa, Bijay Kumar (1996), Possible Directions in the financing of education in Nepal. in Pradhan, Gaja Sundar (Ed.), 87-119, Education and Development. Kathmandu: research center for Educational Innovation and Development. 6. Todaro, Michel P. (1991) economic development in the third world. Fourth Edition. New Delhi: person Education, Inc. 7. UNDP/NPC (2005), Reading in Human Development (Master Level course human Development) 8. Carney, M. (1995) (Ed.), International encyclopedia of economics of education 9. Hand Book on the Economics of Education (vol. 1 & 2), Editors Hanushek and finis Welch, 2006 10. Psacharopoulos, G. (1987), Economics of Education 11. Brewer, D. J. &, McEwan, P. J. (2010). Economics of education. San Diego: Oxford, Jordan Hill