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Marginal willingness to pay for education and the determinants of enrollment in Mexico

Author

Listed:
  • Lopez-Acevedo, Gladys
  • Salinas, Angel
Abstract
Standard benefit-incidence analysis assumes that the subsidy, and quality of education services are the same for all income deciles. This strong assumption tends to minimize the distributional inequity at various education levels. Using a new approach, emphasizing marginal willingness to pay for education, the authors analyze the impact of public spending on the education spending behavior of the average household. They address several questions: What would an average household, with a given set of characteristics be willing to spend on an individual child, with given traits if subsidized public education facilities were unavailable? What would the household have saved by sending the child to public school rather than private school? How great are these savings for various income groups? What are the determinants of enrollment by income group, and by location? How do individuals'education expenditures affect enrollment patterns? Among their findings: 1) The non-poor households in urban areas get much of the subsidy, or"savings"from government provision of education services. 2) The wealthy value private education more than the poor do. 3) Differences in school quality are greater at the primary level. In other words, wealthy households get the lion's share of benefits from public spending on education. Household school enrollment, and transition to the next level of schooling, depend heavily on the cost of schooling, how far the head of the household went in school, the per capita household income, and the housing facilities, or services. But the government's effort also affects the probability of enrollment, and transition. The probability of enrollment is much higher for the 40 percent of higher-income households in urban areas, than it is for the 40 percent of lower-income households in rural areas. The best way to increase school enrollment is to successfully target public spending on education to poor households.

Suggested Citation

  • Lopez-Acevedo, Gladys & Salinas, Angel, 2000. "Marginal willingness to pay for education and the determinants of enrollment in Mexico," Policy Research Working Paper Series 2405, The World Bank.
    • Handle: RePEc:wbk:wbrwps:2405
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    References listed on IDEAS

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    2. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
    3. Hollis Chenery† & T.N. Srinivasan (ed.), 1988. "Handbook of Development Economics," Handbook of Development Economics, Elsevier, edition 1, volume 1, number 1.
    4. Schultz, T. Paul, 1988. "Education investments and returns," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 1, chapter 13, pages 543-630, Elsevier.
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    Cited by:

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    2. Fang Chang & Wenbin Min & Yaojiang Shi & Kaleigh Kenny & Prashant Loyalka, 2016. "Educational Expectations and Dropout Behavior among Junior High Students in Rural China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 24(3), pages 67-85, May.
    3. Campo, Juan Carlos Chavez-Martin del, 2006. "Does Conditionality Generate Heterogeneity and Regressivity in Program Impacts? The Progresa Experience," Working Papers 127042, Cornell University, Department of Applied Economics and Management.
    4. World Bank, 2000. "Mexico : Earnings Inequality after Mexico's Economic and Educational Reforms, Volume 2. Background Papers," World Bank Publications - Reports 15267, The World Bank Group.
    5. Omoeva, Carina & Gale, Charles, 2016. "Universal, but not free: Household schooling costs and equity effects of Uganda’s Universal Secondary Education policy," International Journal of Educational Development, Elsevier, vol. 50(C), pages 41-50.
    6. De Pablos Escobar, Laura & Gil Izquierdo, María, 2011. "Impacto distributivo del gasto público en educación universitaria en España: un análisis de incidencia normativa para el nuevo milenio/Distributive Impact of Public Expenditure in Higher Education: A ," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 29, pages 389(34á.)-3, Abril.
    7. Nistor, Adela P., 2007. "Implications of Human Capital Public Investments for Regional Unemployment in Indiana," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(3), pages 1-8.
    8. World Bank, 2005. "Mexico : Determinants of Learning Policy Note," World Bank Publications - Reports 8284, The World Bank Group.
    9. Bernadette Kamgnia Dia & Simon Leunkeu Wangun & Christophe Tatsinkou & Josephine Afor, 2008. "Bénéfices acquis et ciblage des pauvres dans les dépenses publiques de santé et d'éducation au Cameroun," Working Papers PMMA 2008-08, PEP-PMMA.

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