Question

Economics Development

a) Recent evidence suggests that in poor countries, the private returns to schooling are highest at the university level, exceeding private returns at the primary and secondary levels. Does this mean that governments should take steps to increase their funding of university-level schooling? Why or why not?

b) Describe in detail two policies that governments can undertake to facilitate the quantity–quality tradeoff. Be sure to illustrate with specific references to countries and programs.

Answer 1

1. Yes govt should increase capital. The reason is quite simple. Even though private returns are higher, country's human capital increases which increases welfare and growth of the country

2 we will talk of a poor country like India. First will be civil society audit of sarva shiksha abhiyan at school level. Second will be to increase no. Of public universities but at the same time maintaining ugc standards. Again civil society can conduct independent audit here also