03. Journals
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These are journal articles published in World Bank journals as well as externally by World Bank authors.
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Measuring Human Capital in Middle Income Countries
(Elsevier, 2022-12) Demirgüç-Kunt, Asli ; Torre, IvánThis paper develops an indicator that measures the level of human capital to address the specific education and health challenges faced by middle income countries. We apply this indicator to countries in Europe and Central Asia, where productive employment requires skills that are more prevalent among higher education graduates, and where good health is associated to low levels of adult health risk factors. The Europe and Central Asia Human Capital Index (ECA-HCI) extends the World Bank's Human Capital Index by adding a measure of quality-adjusted years of higher education to the original education component, and it includes the prevalence of three adult health risk factors—obesity, smoking, and heavy drinking—as an additional proxy for latent health status. The results show that children born today in the average country in Europe and Central Asia will be almost half as productive as they would have had they reached the benchmark of complete education and full health. Countries with good basic education outcomes do not necessarily have good higher education outcomes, and high prevalence of adult health risk factors can offset good education indicators. This extension of the Human Capital Index could also be useful for assessing the state of human capital in middle-income countries in general. -
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Spillover Effects of Tobacco Farms on the Labor Supply, Education, and Health of Children: Evidence from Malawi
(Oxford University Press, 2019-04-24) Xia, Fang ; Deininger, KlausUsing data from the Living Standards Measurement Study in Malawi, we examine the spillover effects of tobacco farms on children’s labor supply, education, and health. To address potential endogeneity, the share of tobacco farms in a community is instrumented by the change in tobacco buyers following termination of the intermediate buyer system. We find that, as tobacco cultivation is labor-intensive, children in communities with more tobacco growers spend more time as casual laborers and are less likely to advance to the next grade. Adverse health effects, measured by the likelihood of suffering from illnesses related to green tobacco sickness, are estimated to be larger than previously documented. This affects not only “working-age” children but also children too young to work on tobacco farms. Moreover, exposure to large-scale tobacco cultivation is estimated to reduce the height-for-age z-score of children aged 6–60 months. These findings highlight the importance of raising awareness and taking measures to protect children against green tobacco. -
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Dynamics of Child Development: Analysis of a Longitudinal Cohort in a Very Low Income Country
(Published by Oxford University Press on behalf of the World Bank, 2019-02) Galasso, Emanuela ; Weber, Ann ; Fernald, Lia C.H.Longitudinal patterns of child development and socioeconomic status are described for a cohort of children in Madagascar surveyed when 3–6 and 7–10 years old. Substantial wealth gradients were found across multiple domains: receptive vocabulary, cognition, sustained attention, and working memory. The results are robust to the inclusion of lagged outcomes, maternal endowments, measures of child health, and home stimulation. Wealth gradients are significant at ages 3–4, widen with age, and flatten out by ages 9–10. For vocabulary and sustained attention, the gradient grows steadily between ages three and six; for cognitive composite and memory of phrases, the gradient widens later (ages 7–8) before flattening out. These gaps in cognitive outcomes translate into equally sizeable gaps in learning outcomes. 12–18% of the predicted gap in early outcomes is accounted for by differences in home stimulation, even after controlling for maternal education and endowments. -
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The World Bank Human Capital Index: A Guide
(Published by Oxford University Press on behalf of the World Bank, 2019-02) Kraay, AartThis paper provides a guide to the new World Bank Human Capital Index (HCI), situating its methodology in the context of the development accounting literature. The HCI combines indicators of health and education into a measure of the human capital that a child born today can expect to achieve by her 18th birthday, given the risks of poor education and health that prevail in the country where she lives. The HCI is measured in units of productivity relative to a benchmark of complete education and full health, and ranges from 0 to 1. A value of x on the HCI indicates that a child born today can expect to be only x×100 percent as productive as a future worker as she would be if she enjoyed complete education and full health. -
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Can Regulations Make It More Difficult to Serve the Poor?: The Case of Childcare Services in istanbul, Turkey
(Taylor and Francis, 2016-11-03) Aran, Meltem A. ; Aktakke, Nazli ; Munoz Boudet, Ana MariaPrivate and community-driven efforts can be an important resource to expand early childhood education and care (ECEC) services to poor children, under the right conditions and design. The regulations imposed on private ECEC provision, while having an impact on quality, may increase costs of provision and in return prices of services, reducing accessibility and affordability for poor households. This paper considers the impact of regulations on private ECEC in a highly regulated childcare market in a developing country. Using data from a recently fielded survey that sampled 141 private ECEC facilities in Istanbul, Turkey, the paper looks at the impact of fixed regulations on prices and poor children’s access to services, in particular the outdoor space requirement that was originally imposed on private providers in the 1960s and has over time become more difficult to fulfill in densely populated districts of the city. The paper estimates that controlling for other provider characteristics, in districts where such requirement is more binding, the price of childcare services increases by 376.2 TL per child per month and the percentage of children enrolled coming from poor backgrounds lowers by 15.1% points than in districts where such standard proves less challenging. -
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Maximizing Child Development: Three Principles for Policymakers
(Taylor and Francis, 2016-11-03) Caceres, Susan ; Tanner, Jeffrey ; Williams, SianThis policy note advances three inter-related principles to guide policy-makers and agents in international development organizations to prioritize their actions. These principles are drawn from findings from two Early Childhood Development (ECD) reports recently completed by the World Bank Independent Evaluation Group—one on the World Bank support for ECD and the other a systematic review of the sustained effects of early childhood interventions. The principles are: Support the Early Development of Children, Starting from Birth; Support Parents Through Existing Services; Make Resources Available to Meet Needs of the Most Vulnerable. These principles imply a new emphasis on development beyond survival with effective, evidence-informed interventions. The policy implications also mean starting with what exists in services in health and protection for vulnerable families and augmenting these with parenting support and education components so that children’s risks are reduced and more poor children will be ready to enter primary school at the appropriate age and to persist through schooling and thrive in the labor market. -
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Decentralization of Health and Education in Developing Countries: A Quality-Adjusted Review of the Empirical Literature
(Published by Oxford University Press on behalf of the World Bank, 2016-08) Channa, Anila ; Faguet, Jean-PaulWe review empirical evidence on the ability of decentralization to enhance preference matching and technical efficiency in the provision of health and education in developing countries. Many influential surveys have found that the empirical evidence of decentralization's effects on service delivery is weak, incomplete, and often contradictory. Our own unweighted reading of the literature concurs. However, when we organize quantitative evidence first by substantive theme, and then—crucially—by empirical quality and the credibility of its identification strategy, clear patterns emerge. Higher-quality evidence indicates that decentralization increases technical efficiency across a variety of public services, from student test scores to infant mortality rates. Decentralization also improves preference matching in education, and can do so in health under certain conditions, although there is less evidence for both. We discuss individual studies in some detail. Weighting by quality is especially important when quantitative evidence informs policy-making. Firmer conclusions will require an increased focus on research design, and a deeper examination into the prerequisites and mechanisms of successful reforms. -
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The Effect of Publicly Provided Health Insurance on Education Outcomes in Mexico
(Published by Oxford University Press on behalf of the World Bank, 2016-04-21) Alcaraz, Carlo ; Chiquiar, Daniel ; Orraca, Maria Jose ; Salcedo, AlejandrinaIn this paper we study the causal effect of a large expansion of publicly provided health insurance on school enrollment rates and on children’s academic performance using the case of Mexico. Access to free health insurance could improve education outcomes directly by making household members healthier or indirectly by raising the amount of resources available for education expenses. Using a panel of municipalities from 2007 to 2010, we find that the expansion of the Mexican public health insurance program, Seguro Popular, had a large positive, statistically significant effect on school enrollment rates and on standardized test scores. -
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The Decision to Invest in Child Quality over Quantity: Household Size and Household Investment in Education in Vietnam
(Published by Oxford University Press on behalf of the World Bank, 2016-01) Dang, Hai-Anh H. ; Rogers, F. HalseyDuring Vietnam’s two decades of rapid economic growth, its fertility rate has fallen sharply at the same time that its educational attainment has risen rapidly—macro trends that are consistent with the hypothesis of a quantity-quality tradeoff in child-rearing. We investigate whether the micro-level evidence supports the hypothesis that Vietnamese parents are in fact making a tradeoff between quantity and “quality” of children. We present private tutoring—a widespread education phenomenon in Vietnam—as a new measure of household investment in children’s quality, combining it with traditional measures of household education investments. To assess the quantity-quality tradeoff, we instrument for family size using the commune distance to the nearest family planning center. Our IV estimation results based on data from the Vietnam Household Living Standards Surveys (VHLSSs) and other sources show that rural families do indeed invest less in the education of school-age children who have larger numbers of siblings. This effect holds for several different indicators of educational investment and is robust to different definitions of family size, identification strategies, and model specifications that control for community characteristics as well as the distance to the city center. Finally, our estimation results suggest that private tutoring may be a better measure of quality-oriented household investments in education than traditional measures like enrollment, which are arguably less nuanced and less household-driven. -
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Exploring Women’s Agency and Empowerment in Developing Countries: Where Do We Stand?
(Taylor and Francis, 2015-10-27) Hanmer, Lucia ; Klugman, JeniWhile central notions around agency are well established in academic literature, progress on the empirical front has faced major challenges around developing tractable measures and data availability. This has limited our understanding about patterns of agency and empowerment of women across countries. Measuring key dimensions of women's agency and empowerment is complex, but feasible and important. This paper systematically explores what can be learned from Demographic and Health Survey (DHS) data for fifty-eight countries, representing almost 80 percent of the female population of developing countries. It is the first such empirical investigation. The findings quantify some important correlations. Completing secondary education and beyond has consistently large positive associations, underlining the importance of going beyond primary schooling. There appear to be positive links with poverty reduction and economic growth, but clearly this alone is not enough. Context specificity and multidimensionality mean that the interpretation of results is not always straightforward.