Educational Finance in Thailand - UNESCO Bangkok

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penalizes the children in rural schools, unless these families incur substantial additional costs to attend the better-quality urban schools right from the primary level. 3.6 Among the reasons why the least-advantaged groups invest less in the education of their children are market conditions that work against the poor and perhaps also the limitations on employment opportunities imposed by societal stratification and entrenched networks of information and contacts. Only in the formal labor market, particularly in the public sector and the larger private firms, are there clear returns to education. Thus, if the prospect of gaining employment in the formal sector is believed to be low, many of the poor rural families would opt for no schooling beyond the primary level because of the high cost and low perceived returns. 3.7 This situation compounds the problem of inequity since low education begets low incomes. The inter-generational perpetuation of inequality is likely to accelerate in the future as production technology becomes increasing more complex and as employment shifts increasingly out of agriculture and into industry. In the process the demand for educated workers would no doubt increase and their wages would be driven upward relative to those with less education. 3.8 Various studies also show that a large number of siblings also depresses the chances of a child continuing on to secondary school (for example, Chalongphob et. al., 1988). This finding brings out the link between fertility and the demand for education that has been found in other countries. High fertility tends to be associated with low-income rural households, and the link to low educational attainment can be seen as a segment in the well-known vicious circle. 3.9 In addition, even when remaining in school and educational opportunities are available, children from poor families do not perform as well as other children. High birth-order has been found to have an independent negative effect on school performance and possibly the ability to learn (Sirilaksana, 1986). The main causes of drop-out and repetition of grades were found to be poverty, malnutrition, illness and absenteeism. This situation exacerbates the problems of unequal access, low continuation rates, and low income among rural households. 3.10 Chalongphob (1988) found, among those denied access to secondary education, the first entry into the labor market is predominantly as unpaid family workers, working on the family farm or household enterprise. As these individuals get older, some become employees in the private and public sector, but by far the majority of those with lower primary education remain in the family enterprise (farm and non-farm) either as heads of that enterprise (thereby changing status into own-account workers) or as unpaid family workers. Since the income of own-account workers are on average much lower than other types of workers in the economy, the gap in incomes between those with primary education and better-educated groups has been widening. 3.11 The overall pattern of employment indicates that workers with mere primary education are more than proportionately found in segments of the economy that are less prosperous and less progressive. In particular, agriculture has been, and still is, the main employer of those with primary education. Unfortunately, this is the sector which by far has the lowest value added per head. The large differential between the share of employment in agriculture and the share of agriculture in GDP indicates a high degree of 168
income inequality between agriculture and non-agriculture. To the extent that income determines the accessibility of education especially beyond the compulsory primary level, this would lead to lower enrollment at the secondary level among agricultural households. In fact, analysis of the 1994 and 1996 Socio-economic Survey data reveals that this is the case. Income gaps between agricultural households and non-agricultural households have been widening since the mid-1970's. Thus, the income gap between those with primary education and those with more education has also been widening. 3.12 The Labor Force Surveys also show that the relative position of those with primary education is rapidly deteriorating vis-a-vis the better-educated groups. Thus differential participation in the educational system is an important cause of income inequality and of its perpetuation over time. Educational policies need to be designed to counterbalance the tendency for income disparities to persist across generations through education. Measures are required that would increase the access of those with relatively low education to the more prosperous sectors of the economy, and to ensure increasing participation in the education system for the younger generation, so that current disadvantages are not inherited. 4. Analysis of Household Survey Data 4.a. In the attempt to empower household stakeholders and shift the approach from the supply side to the demand side, an understanding of the factors that affect expenditures on education and the responsiveness of expenditures to changes in purchasing power would allow analysis of the effect of financing schemes to be introduced under the proposed Education Act. 4.b. Analysis is conducted of the latest two Household Socio-Economic Surveys (1994 and 1996) 2 from unpublished household-level data, in order to shed light on the pattern of expenditure on education, and the effect of changes in income on education expenditures. 4.c. The household survey, called the Socio-economic Survey or SES is currently conducted by the National Statistical Office (NSO) every two years, and contains information on income, expenditure, changes in assets, possession of durable goods and living conditions. It is a nationwide survey, with the sample selected through stratified two-stage sampling. The data used in the present analysis differ somewhat from the reported data, due to some differences in definition and the fact that reported information contain only averages, whereas data at the individual household level is also used here. Specifically expenditure on education is defined here to include as much of the expenditure incurred to make schooling possible. For example, school uniforms are included as expenditure on education here, whereas the NSO includes this item under clothing. 2 The 1998 survey has been conducted but data was not available at the time of writing. 169
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mission and operations. The term
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Page 151 and 152: 6. The nation wide implementation.
Page 153 and 154: References Office of the permanent
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Page 157 and 158: Interviews 10 September 1998, 9:00-
Page 159 and 160: Appendix 2 Projections of Costs of
Page 161 and 162: Projected Cost Increases for Expand
Page 163 and 164: Identification of Schools for Sampl
Page 165 and 166: 8. Please place an X in a box below
Page 167 and 168: enrollment as a whole growing at an
Page 169 and 170: Figure 1: Thailand’s Development
Page 171 and 172: Table 5: Crude transition rates of
Page 173 and 174: and level of education, 1993 and 19
Page 175: 2.31 Questionable quality of educat
Page 179 and 180: 4.1.4. The percentages calculated f
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Page 185 and 186: 5.7 The dilemma is to balance the s
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Page 189 and 190: there any activities that would be
Page 191 and 192: References Chalongphob Sussangkarn
Page 193 and 194: Appendix 6 BMA Voucher Policy A. Lo
Page 195 and 196: Appendix 7 Finance Allocation Metho
Page 197 and 198: Appendix 8 Program Structure of the
Page 199 and 200: Not all possible flows are show, si
Page 201 and 202: Appendix 11 Results of Regression A
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