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Causal effects of public education spending on enrollment: Implications for intergenerational mobility in Sub-Saharan Africa

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School of Business | Master's thesis

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en

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58

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Sub-Saharan Africa exhibits the lowest mobility in the world, reflecting limited equality of opportunity. Increasing access to education can make the opportunities within the region more equal. This paper focuses on this mechanism of increasing intergenerational mobility and provides new empirical evidence using panel data and an instrumental variable approach that exploits HIPC debt relief to estimate the causal effect of education spending on primary school enrollment. To the best of the author's knowledge, this is the first paper to provide causal evidence on the relationship between education spending and education outcomes in the region. The findings suggest that education spending has a positive, robust and economically significant effect on enrollment. Combined with prior findings on the education–mobility link, these results provide suggestive evidence that a well-targeted increase in education spending can be an effective tool in promoting greater equality of opportunity in the long-run through an expanded access to education in SubSaharan Africa

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Domnisoru, Ciprian

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Domnisoru, Ciprian

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Attachment notes Description: This appendix includes the do-file and data used in the thesis. Attachments: Thesis_KasperMarkkanen_appendix1.zip

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