Economic Evaluation of Government Subsidy Program for Private Production of Primary Education in Lebanon: A Critical Review
Keywords:
Public financing, basic education, Lebanese schooling system, educational equity, economics of education
Abstract
Aim: Based on Barr’s conceptual paradigm of the welfare state and social justice in the context of education, the paper will critically examine the significance of state involvement in primary education.
Methodology: This paper will perform a methodical literature review of academic literature, policy papers, and official reports in the field to partly defend the Lebanese government’s funding program for private education on the principles of efficiency and fairness.
Findings: It has been determined that the most effective way to address inefficiency and fairness is for the government to subsidize commercial primary education output. Although the Lebanese government created a system of financing allowances to lessen parents’ financial strain in providing for their children’s education, the subsidy program has not succeeded in ensuring equitable access for the lowest rungs of society because there are still large disparities. In order to ensure more equal access to the funding scheme, the government should substitute the existing subsidy program with an income and needs-based funding allocation program, an example of which can be a constrained voucher scheme.
Implications/Novel Contribution: The article provides a critical analysis and economic assessment of the Lebanese government’s primary education financing allotment program’s effectiveness and fairness. For policymakers to genuinely comprehend the issues and make informed decisions, the document offers in-depth knowledge about the subject.
References
Abdul-Hamid, H., & Yassine, M. (2020). Political economy of education in Lebanon: Research for results program. Washington DC: World Bank Publications.
Baroudi, S. (2019). Designing the Lebanese public education budget: A policy document analysis. International Education Journal: Comparative Perspectives, 18(3), 25-38.
Barr, N. (2020). Economics of the welfare state. Oxford, UK: Oxford University Press.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. Lonodon, UK: University of Chicago Press.
Ben David, D., & Kimhi, A. (2017). Economics of education in Israel: Inputs, outputs and performance. Cambridge, UK: Cambridge University Press.
Berne, R., & Stiefel, L. (1999). Concepts of school finance equity: 1970 to the present. In Equity and adequacy in education finance: Issues and perspectives (pp. 7–33). Washington, DC: National Academic Press.
Brewer, D. J., Hentschke, G. C., & Eide, E. R. (2010). Theoretical concepts in the economics of education. In Economics of education. Oxford, UK: Academic Press.
Brown, B. W. (1992). Why governments run schools. Economics of Education Review, 11(4), 287–300. doi:https://doi.org/10.1016/0272-7757(92)90038-5
Center for Educational Research and Development, CERD. (2018a). PISA 2015 national report. program for international student assessment (Tech. Rep.). Portland, OR: Center for Educational Research and Development.
Center for Educational Research and Development, CERD. (2018b). TIMSS 2015 – grade 8 national report (Tech.Rep.). Portland, OR: Center for Educational Research and Development.
Central Administration of Statistics. (2013). Children in Lebanon (Tech. Rep.). Lebanon: Central Administration of Statistics.
Daviet, B. (2016). Revisiting the principle of education as a public good (ED-2016/WP/1). Paris, France:UNESCO.
Dixon-Woods, M. (2010). Systematic reviews and qualitative methods. In Qualitative research: Theory, method and practice. London, UK: Sage.
EPPI-Centre. (2007). EPPI-centre methods for conducting systematic reviews. London, UK: EPPI-Centre, Social Science Research Unit, Institute of Education.
Frayha, N. (2009). The negative face of the Lebanese education system. Retrieved from https://bit.ly/3ZSXs9t
Hanushek, E. A. (1986). The economics of schooling: Production and efficiency in public schools. Journal of Economic Literature, 24(3), 1141-1177.
Hanushek, E. A., & Kimko, D. D. (2000). Schooling, labor-force quality, and the growth of nations. American Economic Review, 90(5), 1184-1208. doi:https://doi.org/10.1257/aer.90.5.1184
Hanushek, E. A., & Woessmann, L. (2020). The economic impacts of learning losses. Paris, France: OECD.
Hermannsson, K. (2016). Economic impact of education: Evidence and relevance. In D. Wyse, E. Hayward, & P. Jessica (Eds.), The SAGE handbook of curriculum, pedagogy and assessment. London, UK: Sage Publications Ltd.
Hirshleifer, J. (1965). Investment decision under uncertainty: Choice—theoretic approaches. The Quarterly Journal of Economics, 79(4), 509-536. doi:https://doi.org/10.2307/1880650
Ho, W.-C. (2020). Students’ perceptions of creativity education: A perspective from Hong Kong, China. International Journal of Humanities, Arts and Social Sciences, 6(6), 244–257. doi:https://dx.doi.org/10.20469/ijhss.6.20003-6
Jencks, C., & Areen, J. (1970). Education vouchers: A report on the financing of elementary education by grants to parents. Cambridge, MA: Center for the Study of Public Policy.
Khan, T. I., Jam, F. A., Akbar, A., Khan, M. B., & Hijazi, S. T. (2011). Job involvement as predictor of employee commitment: Evidence from Pakistan. International Journal of Business and Management, 6(4), 252-262.doi:https://doi.org/10.5539/ijbm.v6n4p252
Kolodziejczak, M., Szarska, J., & Edelmuller, A. (2019). Continuous improvement in education: Adaptation of Kaizen philosophy on the example of the student project AGH leanline. International Journal of Business and Economic Affairs, 4(4), 149–162. doi:https://doi.org/10.24088/ijbea-2019-44001
MacLure, M. (2005). ‘clarity bordering on stupidity’: Where’s the quality in systematic review? Journal of Education Policy, 20(4), 393-416.
McEwan, P. J. (2000). The potential impact of large-scale voucher programs. Review of Educational Research, 70(2), 103–149. doi:https://doi.org/10.3102/00346543070002103
McMahon, W. W. (2004). The social and external benefits of education. In J. Geraint & J. J. (Eds.), International handbook on the economics of education. Northampton UK: Edward Elgar. doi:https://doi.org/10.4337/9781845421694
Ministry of Education and Higher Education. (2013). The committee for overseeing and guiding free private schools (Decree No. 2359). Ministry of Education and Higher Education.
Mughal, M. S., Ross, A. D., & Fearon, D. J. (2017). Development needs of middle managers in higher education institutions: A case study of a post 1992 New University in UK. International Journal of Business and Administrative Studies, 3(6), 239-259. doi:https://doi.org/10.20469/ijbas.3.10005-6
OECD. (2017). School choiceand schoolvouchers: An OECD perspective. Paris, France: OECD.
Plank, D. N., & Davis, T. E. (2010). The economic role of state in education. In D. J. Brewer & P. J. McEwan (Eds.), Economics of education. Oxford, UK: Elesvier.
Pradhan, E., Suzuki, E. M., Martínez, S., Schäferhoff, M., & Jamison, D. T. (2018). The effects of education quantity and quality on child and adult mortality: Their magnitude and their value. In Child and adolescent health and development. Washington, DC: The World Bank.
Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: A decennial review of the global literature. Education Economics, 26(5), 445-458. doi:https://doi.org/10.1080/09645292.2018.1484426
Raffo, C., Dyson, A., Gunter, H., Hall, D., Jones, L., & Kalambouka, A. (2009). Education and poverty: Mapping the terrain and making the links to educational policy. International Journal of Inclusive Education, 13(4), 341-358. doi:https://doi.org/10.1080/13603110802124462
Shuayb, M. (2016). Education for social cohesion attempts in Lebanon: Reflections on the 1994 and 2010 education reforms. Education as Change, 20(3), 225–242. doi:http://dx.doi.org/10.17159/1947-9417/2016/1531
Stiglitz, J. E., & Stiglitz, J. E. (2000). Economics of the public sector. New York, NY: WW Norton.
Tfaily, R., Diab, H., & Kulczycki, A. (2013). Educational disparities and conflict: Evidence from Lebanon. Research in Comparative and International Education, 8(1), 55-73. doi:https://doi.org/10.2304/rcie.2013.8.1.55
Waheed, M., & Jam, F. A. (2010). Teacher’s intention to accept online education: Extended TAM model. Interdisciplinary Journal of Contemporary Research in Business, 2(5), 330-344.
World Bank Group. (2017). Lebanon education public expenditure review. Washington DC: World Bank.
Baroudi, S. (2019). Designing the Lebanese public education budget: A policy document analysis. International Education Journal: Comparative Perspectives, 18(3), 25-38.
Barr, N. (2020). Economics of the welfare state. Oxford, UK: Oxford University Press.
Becker, G. S. (2009). Human capital: A theoretical and empirical analysis, with special reference to education. Lonodon, UK: University of Chicago Press.
Ben David, D., & Kimhi, A. (2017). Economics of education in Israel: Inputs, outputs and performance. Cambridge, UK: Cambridge University Press.
Berne, R., & Stiefel, L. (1999). Concepts of school finance equity: 1970 to the present. In Equity and adequacy in education finance: Issues and perspectives (pp. 7–33). Washington, DC: National Academic Press.
Brewer, D. J., Hentschke, G. C., & Eide, E. R. (2010). Theoretical concepts in the economics of education. In Economics of education. Oxford, UK: Academic Press.
Brown, B. W. (1992). Why governments run schools. Economics of Education Review, 11(4), 287–300. doi:https://doi.org/10.1016/0272-7757(92)90038-5
Center for Educational Research and Development, CERD. (2018a). PISA 2015 national report. program for international student assessment (Tech. Rep.). Portland, OR: Center for Educational Research and Development.
Center for Educational Research and Development, CERD. (2018b). TIMSS 2015 – grade 8 national report (Tech.Rep.). Portland, OR: Center for Educational Research and Development.
Central Administration of Statistics. (2013). Children in Lebanon (Tech. Rep.). Lebanon: Central Administration of Statistics.
Daviet, B. (2016). Revisiting the principle of education as a public good (ED-2016/WP/1). Paris, France:UNESCO.
Dixon-Woods, M. (2010). Systematic reviews and qualitative methods. In Qualitative research: Theory, method and practice. London, UK: Sage.
EPPI-Centre. (2007). EPPI-centre methods for conducting systematic reviews. London, UK: EPPI-Centre, Social Science Research Unit, Institute of Education.
Frayha, N. (2009). The negative face of the Lebanese education system. Retrieved from https://bit.ly/3ZSXs9t
Hanushek, E. A. (1986). The economics of schooling: Production and efficiency in public schools. Journal of Economic Literature, 24(3), 1141-1177.
Hanushek, E. A., & Kimko, D. D. (2000). Schooling, labor-force quality, and the growth of nations. American Economic Review, 90(5), 1184-1208. doi:https://doi.org/10.1257/aer.90.5.1184
Hanushek, E. A., & Woessmann, L. (2020). The economic impacts of learning losses. Paris, France: OECD.
Hermannsson, K. (2016). Economic impact of education: Evidence and relevance. In D. Wyse, E. Hayward, & P. Jessica (Eds.), The SAGE handbook of curriculum, pedagogy and assessment. London, UK: Sage Publications Ltd.
Hirshleifer, J. (1965). Investment decision under uncertainty: Choice—theoretic approaches. The Quarterly Journal of Economics, 79(4), 509-536. doi:https://doi.org/10.2307/1880650
Ho, W.-C. (2020). Students’ perceptions of creativity education: A perspective from Hong Kong, China. International Journal of Humanities, Arts and Social Sciences, 6(6), 244–257. doi:https://dx.doi.org/10.20469/ijhss.6.20003-6
Jencks, C., & Areen, J. (1970). Education vouchers: A report on the financing of elementary education by grants to parents. Cambridge, MA: Center for the Study of Public Policy.
Khan, T. I., Jam, F. A., Akbar, A., Khan, M. B., & Hijazi, S. T. (2011). Job involvement as predictor of employee commitment: Evidence from Pakistan. International Journal of Business and Management, 6(4), 252-262.doi:https://doi.org/10.5539/ijbm.v6n4p252
Kolodziejczak, M., Szarska, J., & Edelmuller, A. (2019). Continuous improvement in education: Adaptation of Kaizen philosophy on the example of the student project AGH leanline. International Journal of Business and Economic Affairs, 4(4), 149–162. doi:https://doi.org/10.24088/ijbea-2019-44001
MacLure, M. (2005). ‘clarity bordering on stupidity’: Where’s the quality in systematic review? Journal of Education Policy, 20(4), 393-416.
McEwan, P. J. (2000). The potential impact of large-scale voucher programs. Review of Educational Research, 70(2), 103–149. doi:https://doi.org/10.3102/00346543070002103
McMahon, W. W. (2004). The social and external benefits of education. In J. Geraint & J. J. (Eds.), International handbook on the economics of education. Northampton UK: Edward Elgar. doi:https://doi.org/10.4337/9781845421694
Ministry of Education and Higher Education. (2013). The committee for overseeing and guiding free private schools (Decree No. 2359). Ministry of Education and Higher Education.
Mughal, M. S., Ross, A. D., & Fearon, D. J. (2017). Development needs of middle managers in higher education institutions: A case study of a post 1992 New University in UK. International Journal of Business and Administrative Studies, 3(6), 239-259. doi:https://doi.org/10.20469/ijbas.3.10005-6
OECD. (2017). School choiceand schoolvouchers: An OECD perspective. Paris, France: OECD.
Plank, D. N., & Davis, T. E. (2010). The economic role of state in education. In D. J. Brewer & P. J. McEwan (Eds.), Economics of education. Oxford, UK: Elesvier.
Pradhan, E., Suzuki, E. M., Martínez, S., Schäferhoff, M., & Jamison, D. T. (2018). The effects of education quantity and quality on child and adult mortality: Their magnitude and their value. In Child and adolescent health and development. Washington, DC: The World Bank.
Psacharopoulos, G., & Patrinos, H. A. (2018). Returns to investment in education: A decennial review of the global literature. Education Economics, 26(5), 445-458. doi:https://doi.org/10.1080/09645292.2018.1484426
Raffo, C., Dyson, A., Gunter, H., Hall, D., Jones, L., & Kalambouka, A. (2009). Education and poverty: Mapping the terrain and making the links to educational policy. International Journal of Inclusive Education, 13(4), 341-358. doi:https://doi.org/10.1080/13603110802124462
Shuayb, M. (2016). Education for social cohesion attempts in Lebanon: Reflections on the 1994 and 2010 education reforms. Education as Change, 20(3), 225–242. doi:http://dx.doi.org/10.17159/1947-9417/2016/1531
Stiglitz, J. E., & Stiglitz, J. E. (2000). Economics of the public sector. New York, NY: WW Norton.
Tfaily, R., Diab, H., & Kulczycki, A. (2013). Educational disparities and conflict: Evidence from Lebanon. Research in Comparative and International Education, 8(1), 55-73. doi:https://doi.org/10.2304/rcie.2013.8.1.55
Waheed, M., & Jam, F. A. (2010). Teacher’s intention to accept online education: Extended TAM model. Interdisciplinary Journal of Contemporary Research in Business, 2(5), 330-344.
World Bank Group. (2017). Lebanon education public expenditure review. Washington DC: World Bank.
Published
2023-03-17
Section
Articles
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