UNIVERSITY OF ECONOMICS INSTITUE OF SOCIAL STUDIES HOCHIMINH CITY THE HAGUE VIETNAM NETHERLANDS VIETNAM- THE NETHERLANDS PROJECT FOR M. IN DEVELOPMENT ECONOMICS DETERMINANTS OF ENROLLMENT FOR SECONDARY EDUCATION IN DAKLAK PROVINCE A thesis submitted in partial fullfilment of the requirements for the degree of. MASTER OF ARTS IN DEVELOPMENT ECONOMICS SUPERVISOR : MA. NGUYEN HUU LOC STUDENT :PRAM TAN VIET [!() GiAO O!JC vAr/,o Ti\0 TRLJ'C)NG DH KINH TE TP.HCM T'HUVB~N HO CHI MINH CITY, SEPTEMBER 2003 CERTIFICATION "I certify that the substance of this dissertation has not already been submitted for any degree and is not being currently submitted for any other degrees.
I also certify that to the best of my knowledge, any help received in preparing this dissertation and all sources used, have been acknowledged in this dissertation". Pham Tan Viet Ho Chi Minh City, September 2003 i ACKNOWLEDGEMENT In order to obtain knowledge to complete this thesis, I am very grateful to Dutch government for her financial support and scholarship during the two - year course. I am greatly indebted to all project teachers and staff for their kindness. Particularly, my thankfulness is given to Mr.
Tran Vo Hung Son -the Project Director; Ms. Tran Thi Ben - Project Deputy Director; Ms. Nguyet - the Project Secretary and Ms. the Project Librarian.
High appreciation is given to Dr. Karel Jansen and Dr. Joudi Schipper for their valuable comment of the thesis. I also thank all my classmates, especially Mr.
Van and Ms. Thuy who commented and contributed a lot of worthy ideas for my thesis research design. I would like to express my appreciation to M. Nguyen Huu Loc, who gave whole- hearted help and gave me lots of useful advise in order to improve this paper.
It will be extremely difficult for me to accomplish this thesis without his help. His advise and dedication play a key role for successfulness of this thesis. My heartfelt gratitude is sent to Mr. Pham Van Chi - Eah'Leo Head of Education Department; Mr.
Nguyen Van Tuyen - Chairman of Eah'Leo District People's Committee who helped me during the survey. ii ABSTRACT This paper examines the role of household' s and child' s characteristics on the decision to send children to go to secondary school in Eah'Leo district, DakLak province. The results of this paper show that differences in household' s characteristic affect children' s enrollment. The higher the per capita household income, the more chance for children to go to school.
Children' s characteristic consideration as child' s ability is discovered to make sense remarkably concerning school decision. More intelligent children are often received more education by their parents. iii ABBREVIATIONS DSO Dak Lak Statistical Office MOET Ministry of Education and Training VLSS Vietnam Living Standards Survey VNSSFS Vietnam Social Sector Financing Survey EPH Encuesta Permanent de Hogares WB The World Bank UNDP The United Nation Development Program GSO General Statistic Official iv CONTENT Certification. ix List offigures.
xi CHAPTER 1 :INTRODUCTION. OBJECTIVE AND SCOPE OF THE THESIS. METHODOLOGY AND DATA COLLECTION. LIMITATIONS OF THE THESIS.
STRUCTURE OF THE THESIS. 5 CHAPTER 2:THEORETICAL FRAMEWORK. The human capital theory. Theoretical models of Intra-Household allocation .1 The wealth model.2 The separable earnings- transfers model.
Models on intergenerational and intragenerational mobility. Other determinants of children's educational attainment. THE EMPIRICAL STUDIES. 25 CHAPTER3:0VERVIEW OF SECONDARY EDUCATION IN VIETNAM.
RECENT TRENDS IN SECONDARY EDUCATION IN VIETNAM. DROP OUT RATE IN SECONDARY EDUCATION IN VIETNAM. DESCRIPTIVE STATISTIC ON ENROLLMENT AND HOUSEHOLD INCOME. 33 CHAPTER 4:DETERMINANTS OF ENROLLMENT FOR SECONDARY EDUCATION IN.
OVERVIEW OF EDUCATION IN EAH'LEO DISTRICT, DAKLAK PROVINCE. Situation of school enrollment in Eah' Leo district in 2001-02. DESCRIPTION OF VARIABLES. DATA COLLECTION AND PROCESSING.
Data, data source. Limitation of data collection. The relationship between enrollment rate and per capita household income. The relationship between enrollment rate and parents' years of schooling.
The relationship between enrollment rate and number of sibling. The relationship between enrollment rate and child's gender. The relationship between enrollment rate and child's age. The relationship between enrollment rate and child's ability.
The regression result. The regression diagnostic testing .1 Testing the estimated z value and sign of estimated coefficients .2 Functional form test.3 Testing for multicollinearity .4 Goodness- of- fit test .5 Distribution of logit model. COMMENTS ON THE ECONOMETRIC RESULTS. Per capita household income level.
Number of siblings. 61 CHAPTER 5:CONCLUSION AND RECOMMENDATIONS. 62 APPENDIX REFERENCES viii LIST OF TABLES Table 2.1: Summary of the empirical studies .1: Secondary School Enrollment in Vietnam in Selected Years, 1995-02 .2: Index of pupils at secondary school level (Previous year= 100) .3: Secondary education drop out rates, 1989-97 .4: Reasons for drop out at secondary school.5: Household Expenditure on Secondary Education per Pupils in 1997-98 .6: Average Household Expenditure on Education by Region and Level of Education. 7: Net Enrollment Ratios by Income Quintiles .1: School Enrollment in Eah'Leo district in 200 1-02 .2: First Semester Performance School Year 2002-03 in Eah'Leo District .3: Transforming concepts into empirically measurable variables .4: Distribution of enrollment rate .5: Prevalence of low enrollment rate indicator by per capita household income .6: Prevalence of low enrollment rate indicator by parents' years of schooling.
7: Prevalence of low enrollment rate indiCator by number of sibling .8: Prevalence of low enrollment rate indicator by child's gender .9: Prevalence of low enrollment rate indicator by child's age .10: Prevalence of low enrollment rate indicator by child's ability .11: School enrollment logit estimates .12: Logit estimates: unrestricted version of model .13: Logit estimates: restricted version of model .14: Correlation coefficients among explanatory variables .15: Distribution of regression model .16: The estimated probability that a child aged 11-17 goes to school 1. 58 X LIST OF FIGURES Figure 2.1: The relationship between wage rate and years of schooling for persons with different abilities .2: Logit and probit cumulative distributions. 43 xi CHAPTER 1: INTRODUCTION I. Problem Statement Almost countries recognize the key role played by human capital for national growth and development, especially education.
The East Asia tigers including Hong Kong, Singapore, South Korea and Taiwan achieved the sustainable high rates of growth about 6-7 per cent per year for four decades. This success is paralleled with sustainable growth in formation of skill (Ashton et al, 1999). Recognizing this importance after achieving independence from colonialism new governments of developing countries embark on building schools. As a result school enrollments increased rapidly from nearly 100 millions in 1950 to 764 millions by 1990 at all levels of education (Gillis et al, 1996).
There are lot of empirical evidence suggested the relationship between education investment and enhancing economic growth in developing countries. For example, contribution of education to economic growth was wide range of 1 to 3 percent in Mexico, Brazil, and Venezuela to .16 percent in Argentina (lfaddad, W. According to Law of Education in 1998 education has been considered as the first national priority policy in the process of industrialization and modernization to repel poverty in Vietnam. The most sensible feature in low-income countries is that a large population depends on agricultural production, around seventy per cent (Gillis et al, 1996).
Vietnam is not 1 exceptional case with about eighty per cent population in agriculture (WB, 1999c). However, agricultural yield is strongly dependent on natural condition (i. This may result in low and unstable level of income of households. Even a good yield is not sure to bring higher household income due to fluctuated price of agricultural products.
It is believes that there is a strong relationship between education and income at individual (Blau, 1996). Education will increase capacity of earning money and employment opportunity (Haughton et all, 2001). Hence, a way to improve household income and to resist poverty is that people try to get as much amount of schooling as possible for their children and themselves, The Vietnam education level, which can be measured by enrollment rate, began to decline in the late 1980s (Glewwe and Jacoby, 1998). In the Central Highlands Region, where considers as one of the least developed areas in Vietnam, its net enrollment ratios for secondary school ranks second to last just above Mekong River Delta, 38 per cent compared with 29 per cent (WB, 1997).
Thus, the problem arises here is that whether a low secondary education in mountain areas is due to low and flexible level of household income. There exists a cycle in which a well-educated person have more chance to get higher earnings, which, in tum, encourage him or her to get as high education as possible because formal education contributes important role in individual's earnings. The higher an individual's educational attainment, the higher expected starting salary that individual can earn (WB, 1996). Therefore, this study will 2 examine the impact of household income level on enrollment in secondary school in Daklak province because whether a low secondary school enrollment rate (19 per cent) in DakLak province (DSO, 2001) is caused by low per capita about VND296;000 per month in 1999 (DSO, 2001).
The purpose of this study is to find out whether there exists any causality between the level of household income and a child's enrollment rate and why enrollment rate is still low in secondary school in Daklak province. This thesis focuses on topic 'Impact of level of household income on enrollment in secondary school in Daklak province'. The topiC is fairly important because secondary education provides basic skills for further individual's study. Moreover, investment in children's education may be the base to break down vicious cycle of poverty transmitted among generations and spurs national growth and economic development (Jensen, 2000).
Objective and scope of the thesis This study was under taken to specify the impact of level of household income on parents' making-decision in sending their children to school at the secondary level. In other words, this thesis focuses on answering following research questions: (i) Is there a positive relationship between per-capita household income and enrollment of secondary school in Daklak province? 3 (ii) Whether child's ability influences on parents' making-decision in sending children to secondary school in Daklak province or not? The above research questions are based on the following hypotheses: (i) There is a positive relationship between per-capita household income and enrollment of secondary school in Daklak province, and (ii) Child's ability influences on parents' making-decision in sending children to secondary school in Daklak province. Methodology and data collection This study tries to clear up the above said objectives by the theoretical models of household economics and the previous empirical studies. Beside the descriptive method, which provides a picture of Vietnam secondary education through collecting tertiary data of the World Bank, UNDP, and others in general and the status of secondary enrollment rates in Daklak province in particular, the legit regression technique is also used in order to analyze the data of this study.
This research considers whether a child will go to school or not, particular in secondary level. Each child within the secondary school age, 11-17 years old is considered as a sample unit in this study. A cross-section data set of individuals of households is used in order to explore the school attainment decision based on mainly the impact of per capita income of households. 4 Daklak province is chosen to examine this study instead of VLSS 1992 - 93 and VLSS 1997 - 98 because faster and faster development might make VLSS data become already old.
Moreover, a variable which proxies for child's ability is not available in VLSS 1992-93 and VLSS 1997-98. Limitations of the thesis There are two approaches in the theory: static model and dynamic model. The latter is the better approach for the topic relating to education. However, the study is just likely to use static approach since limitation of time and budget constraint.
Human capital is multi-dimensional.