TY - JOUR
T1 - Economic growth and the demand for education
T2 - Is there a wealth effect?
AU - Glewwe, Paul
AU - Jacoby, Hanan G.
PY - 2004/6
Y1 - 2004/6
N2 - Human capital investment in developing countries is thought to be significantly constrained by household resources. This paper studies the relationship between household resources and the demand for education using recent household survey data from Vietnam. The data cover a period, 1993-1998, of exceptional income growth in Vietnam, during which secondary school enrollment rose substantially. Using consumption expenditures to measure household wealth, we find a positive and significant relationship between changes in wealth and changes in the demand for education. This wealth effect persists even after controlling for locality-specific factors such as changes in education returns and the supply and quality of schools, and for the opportunity costs of schooling.
AB - Human capital investment in developing countries is thought to be significantly constrained by household resources. This paper studies the relationship between household resources and the demand for education using recent household survey data from Vietnam. The data cover a period, 1993-1998, of exceptional income growth in Vietnam, during which secondary school enrollment rose substantially. Using consumption expenditures to measure household wealth, we find a positive and significant relationship between changes in wealth and changes in the demand for education. This wealth effect persists even after controlling for locality-specific factors such as changes in education returns and the supply and quality of schools, and for the opportunity costs of schooling.
KW - Developing countries
KW - Economic growth
KW - Education
KW - Human capital
KW - Vietnam
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U2 - 10.1016/j.jdeveco.2003.12.003
DO - 10.1016/j.jdeveco.2003.12.003
M3 - Article
AN - SCOPUS:2342472722
SN - 0304-3878
VL - 74
SP - 33
EP - 51
JO - Journal of Development Economics
JF - Journal of Development Economics
IS - 1
ER -
