International Development

FSI researchers consider international development from a variety of angles. They analyze ideas such as how public action and good governance are cornerstones of economic prosperity in Mexico and how investments in high school education will improve China’s economy.

They are looking at novel technological interventions to improve rural livelihoods, like the development implications of solar power-generated crop growing in Northern Benin.

FSI academics also assess which political processes yield better access to public services, particularly in developing countries. With a focus on health care, researchers have studied the political incentives to embrace UNICEF’s child survival efforts and how a well-run anti-alcohol policy in Russia affected mortality rates.

FSI’s work on international development also includes training the next generation of leaders through pre- and post-doctoral fellowships as well as the Draper Hills Summer Fellows Program.

"We cannot afford to postpone investing in children until they become adults, nor can we wait until they reach school age—a time when it may be too late to intervene. Learning is a dynamic process and is most effective when it begins at a young age and continues through to adulthood."

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Migration is one of the main ways of alleviating poverty in developing countries, including China. However, there are concerns about the potential negative effects of migration on the educational achievement of the children that are left behind in villages when one or both of their parents out-migrate to cities. This paper examines changes in school performance before and after the parents of students out-migrate. Surprisingly, we find that there is no significant negative effect of migration on school performance. In fact, we find that educational performance improves in migrant households in which the father out-migrates.

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Journal Articles
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China's Economic Development (2014), and Comparative Economic Studies
Authors
Scott Rozelle

Shorenstein APARC
Stanford University
Encina Hall E301
Stanford, CA 94305-6055

(650) 724-9747 (650) 723-6530
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Assistant Professor, Hong Kong University. Research Team, Rural Education Action Project China.
Li_Han.JPG MA

Li Han is an assistant professor of economics at Hong Kong University of Science and Technology. She holds a Ph.D. in economics from Harvard University. Li Han's research interests are development economics and political economy. Her recent work examines the recent wave of centralization reforms in rural education system in China.

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Previous studies have found that the returns to education in rural China are far lower than estimates for other developing economies. In this paper, we seek to determine why previous estimates are so low and provide estimates of what we believe are more accurate measures of the returns. Whereas estimates for the early 1990s average 2.3 percent, we find an average return of 6.4 percent. Furthermore, we find even higher returns among younger people, migrants, and for post-primary education. The paper demonstrates that, although part of the difference between our estimate and previous estimates can be attributed to increasing returns during the 1990s, a larger part of the difference is due to the nature of the data and the methodological approaches used by other authors.

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Review of Development Economics
Authors
Scott Rozelle
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Testing the tradeoff between child quantity and quality within a family is complicated by the endogeneity of family size. Using data from the Chinese Population Census, this paper examines the effect of family size on child educational attainment in China. We find a negative correlation between family size and child educational attainment, even after we control for the birth order effect. We then instrument family size by the exogenous variation that is induced by a twin birth, and find a causal link between family size and children’s education. We also find that the effect of family size is more evident in rural China, where the public education system is poor. These findings suggest a quantity-quality tradeoff of children in developing countries.

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Demography
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In this paper, we examine the effect of maternal education on the health of young children by using a large sample of adopted children from China. As adopted children are genetically unrelated to the nurturing parents, the educational effect on them is most likely to be the nurturing effect. We find that the mother's education is an important determinant of the health of adopted children even after we control for income, the number of siblings, health environments, and other socioeconomic variables. Moreover, the effect of the mother's education on the adoptee sample is similar to that on the own birth sample, which suggests that the main effect of the mother's education on child health is in post-natal nurturing. Our work provides new evidence to the general literature that examines the determinants of health and that examines the intergenerational immobility of socioeconomic status.

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Journal of Health Economics
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In interpreting the positive relationship between spousal education and one’s earnings, economists have two major hypotheses: cross-productivity between couples and assortative mating. However, no prior empirical study has been able to separate the two effects. This paper empirically disentangles the two effects by using twins data that we collected from urban China. We have two major innovations: we use twins data to control for the unobserved mating effect in our estimations, and we estimate both current and wedding-time earnings equations. Arguably, the cross-productivity effect takes time to be realized and thus is relatively unimportant at the time of the wedding. Any effect of spousal education on wedding-time earnings should more likely be the mating effect. We find that both cross-productivity and mating are important in explaining the current earnings. Although the mating effect exists for both husbands and wives, the cross-productivity effect only runs from Chinese husbands to wives. We further show that the cross-productivity effect is realized by increasing the hourly wage rate rather than working hours.

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Chinese University of Hong Kong, Department of Economics
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