Presents a simple framework for (1) demonstrating how households determine schooling investments through choice and voice; and (2) considering effects of decentralization on household behaviors, given information problems. Some aspects of decentralization may increase efficiency; others may be neutral or decrease efficiency. Further research is…

Using a new twins sample, presents new estimates of schooling returns and "ability" bias and tests that bias's significance. Ability bias may exist even if ability's genetically-endowed component does not affect schooling decisions directly when correlated with other family characteristics (like income) that do affect schooling. (19 references)…

Examines determinants of cognitive achievement in rural Pakistan, controlling for cognitive ability, family background, various school quality measures, and educational attainment. Estimates indicate substantial variation in school effectiveness. Investments that improve teacher quality and increase student exposure to teachers are likely to have…

Revisits key school effectiveness measurement issues: difficulties in evaluating school effectiveness from behavioral data due to observation/measurement problems; evidence on marginal values of schooling outputs and schooling production relations; methodological issues in underlying studies and their carryover to cost-benefit estimates; and…

This paper explores supply and demand determinants of the amount and distribution of schooling in prerevolution Nicaragua (1977-78). Findings suggest that the difference between rural and urban areas significantly affects schooling availability, but family background also accounts for variance in schooling here and in similar societies. (TE)

Surveys issues related to recent and prospective schooling investment in developing countries, including educational levels, changes, and demands between 1960-81, and identifies under- and over-achieving countries. Standard estimates overstate schooling impacts by not controlling for school quality, childhood family background, and geographical…

Maximizing allocations of all human capital investments (in children's schooling, health, nutrition, and general development) may hinder the identification of education's actual effects. Relative price variations across individuals are difficult to measure even if nonschooling investments are observed. Therefore, schooling's impact is usually…