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Problem set 2-Education Economics-Assignment, Exercises of Economics of Education

Dr. Bhim Rao Ambedkar University Economics of Education

This is assignment for Education Economics course. It was submitted to Prof. Kunda Innuganti at Agra University. It includes: Mexico, Program, Primary, Schoools, Plan, Improvement, Return, Dropout, Rate

Typology: Exercises

2011/2012

Uploaded on 08/12/2012

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Problem Set 2 11.126 /11.249/14.48 Due March 20, 2007 in class 1. (25 points) In 2001, Mexico instituted a program called Programa Escuelas de Calidad (PEC). Primary schools enrolled in PEC received a 5-year grant of $15,000 for supplies and te ill development and free training for the principal. PEC also requii aff and parent associations to become actively involved in drafting a plan for school improvement. In principle, every primary school may participate; in practice, about 10% did by the 2003 — 04 school year. The program specifically targets disadvantaged urban schools through an advertising campaign. her ‘hool s You have a data set that tells you the dropout rate (the proportion of students who did not return to school in the following year) at 74,701 " year from 2000-01 to 2003—04. Of these schools, 1767 became enrolled in PEC at the beginning of 2001 — 02, an additional 7477 became enrolled by the beginning of 2003 — 04, and 65, 457 were still not enrolled by the end of the period covered. (You can assume that once s with the program for 5 years.) You ipation in PEC on a school’s dropout a school becomes enrolled, it st want to estimate the effect of parti rate. (a) (5 points) Someone suggests that you look at the 1767 schools that were enrolled in 2001 —02 and compare their dropout rate in 2000-01 to their dropout rate in 2003 — 04. Do you think this is a good approach? Explain why or why not. (b (5 points) Someone else suggests that you compare the 1767 schools that had been receiving PEC from the start to the 65, 457 schools that never enrolled, and take the difference in their 2003—04 dropout rates as the effect of PEC. Do you think this is a good approach? Explain why or why not. (10 points) Using this data set, devise your own research strategy to estimate the effect of PEC on dropout. Be precise in describing how you will calculate your estimate. (a (5 points) Even though you believe your strategy in (c) to be a good one, it probably require: umptions in order to be valid. Ex- plain the conditions under which your approach in (c) would give you a misleading estimate of the causal effect of PEC. some a 2. (21 points) You want to estimate the return to an additional year of school- ing, but you are concerned about ability bias. Consider each of the fol- lowing empiri and explain why or why not you think it would solve th s problem and correctly estimate the return to schooling: docsity.cmo

Problem set 2-Education Economics-Assignment, Exercises of Economics of Education

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