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ESTHER DUFLO: So actually
a lot of themes are

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criss-crossing in this
documentary.

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It's pretty well done for
managing to bring many of

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those teams up.

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So before we sort of I summarize
them, I'd like to

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have your impression of what are
the themes that seem to be

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important in like how the
students get educated, the

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government's decisions, the
parent's decision, et cetera?

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Yeah, Ben?

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AUDIENCE: Cultural
preservation.

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I forget the other one.

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It was the Kurds, and who's--

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ESTHER DUFLO: Just the rest of
Turkey, mainstream Turkey.

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AUDIENCE: --mainstream Turkey
and how they're willing to

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preserve their culture, and how
that spill-over effects

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[INAUDIBLE] how they operate
[INAUDIBLE].

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ESTHER DUFLO: Right, so one
issue that is kind of there is

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whether the whole education is a
way to mainstream the Kurds,

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which they are suspicious
about.

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That's a good point.

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AUDIENCE: Yeah, I was going
to say infrastructure, so

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actually physically getting the
schools becomes a problem.

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The guy mentioned like when it
snows, it becomes hard for the

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children to get to school,
so they fall behind.

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And they have the desire to
become a boarding school, like

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religious schools actually
in their village.

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But because they don't have
that, it becomes difficult.

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ESTHER DUFLO: Right.

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So there is a supply
constraint.

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There are no schools in the
villages and getting to them--

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they go by bus, but even that
is difficult, because

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infrastructure is difficult.

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AUDIENCE: It can also to be hard
to find justification for

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this education, because although
some people argue

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that there is still value to it,
even if girls or boys who

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get educated just come back to
the village and live with

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their family, but a
lot of people say,

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well, what is the point?

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ESTHER DUFLO: So there
is a question of

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the benefits of education.

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Yaprak's parents, what do they
think the benefit of education

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is for her?

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00:02:29,470 --> 00:02:32,290
What do they expect from
the education?

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AUDIENCE: For her to come back
and contribute to the family.

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ESTHER DUFLO: Is it what they
say, or is it someone

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else who says that?

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What do the parents say,
the mom, and then

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Yaprak say it also.

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AUDIENCE: Her mom said
that she wanted

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her to become a doctor.

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ESTHER DUFLO: Her mom says she
wants her to become a doctor.

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She also wants to
become a doctor.

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And in fact there is this
debate where people are

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saying, well, what's the point
of education if we don't have

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a job that will take into
account this education?

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And there's this other guy who
says, well, even if she

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doesn't become a doctor, there
are these other things.

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But it seems to have
a little bit of a

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minority view in this.

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You don't see any anyone asking
her the question, but

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she answers, saying,
yeah, yeah, there

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would be some value.

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But there's somewhat
of a debate there.

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AUDIENCE: When you're talking
about supply, there's a lack

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of supply of teachers
over there.

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So in particular regions, like
the eastern region for

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example, teachers have
to go out into those

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cultural sort of things.

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They're coming from
different regions

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where culture's different.

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And then at the same
time, they may not

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particularly be there.

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They're passing through.

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You mentioned that do we go to
train or to get experience in

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this way and them move on.

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So there's not sustainability.

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When you think about teaching,
it's important that teachers

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build relationships
with students and

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00:04:00,205 --> 00:04:01,200
really pour into them.

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But when they're in this like
transit sort of mindset, it

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becomes a little hard
to do that.

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ESTHER DUFLO: Right, so that's
another supply issue from the

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supply side is whether there
are enough teachers.

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And then that kind of interacts
like it was a

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cultural issue.

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Who were the teachers?

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I think you're making
two points

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that are both important.

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One is the point that the
teachers who are coming to

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them may not be as motivated.

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They might not be accountable
to the community.

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They might be difficult
to discipline.

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They might not care.

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In addition, they might be the
ones who are trying to teach

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in Turk and not and not in
Kurd, and all of that.

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So that brings the cultural
dimension.

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Yup?

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AUDIENCE: Another thing I didn't
realize whether or not

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they mentioned in that movie.

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But there's a problem if all
these girls are actually

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living in those boarding schools
for most of the week.

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And they're just going
back for the weekend.

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You know, they don't have that
sort of family [INAUDIBLE]

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that's going to actually
give them more balance.

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So even though they'll be
getting an education, there's

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a huge drawback for the fact
that they don't have their

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parents right there and
telling them what

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they have to do.

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And nobody really knows
what that could

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cause in the long run.

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ESTHER DUFLO: Like you guys,
far from your families--

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yeah, I think this sort of
comes a little bit in

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[INAUDIBLE]

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when they have this debate about
I think they would like

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to have the schools
in their villages.

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That don't like to send the
kids to boarding school.

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I think one issue is are the
kids mature enough to manage

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in boarding school?

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And the other which
is in [INAUDIBLE]

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of that, are they going
to become different?

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Are they going to absolve these
values that these guys

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are not necessarily
looking for?

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There might also be a slight
conflict underlying this,

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where actually from the point
of view of the Turkish

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government, who is trying
to make the Kurds

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into regular Turks.

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It's actually a good
thing to get them

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away from the families.

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But from the point of the view
of the Kurd, that's kind of a

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way of following
the exhibition.

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So that's one thing that goes
with education, which you find

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in a lot of places.

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For example, there was a big
education drive in Indonesia

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that I'm going to talk
in a bit, which had

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exactly the same idea.

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Education is about
imparting skills.

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It's also about imparting
a world view.

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And therefore that creates
conflict between the different

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people who have different
ideas about what these

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worldviews should be.

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AUDIENCE: Maybe also that those
parents talked about the

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lack of [INAUDIBLE]

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practical things maybe teach
about agriculture [INAUDIBLE]?

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ESTHER DUFLO: Yes, so that goes
back to what is the value

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of education?

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What's the benefit
of education?

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So it comes back to well, fine,
if she graduates and

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becomes a doctor,
that's great.

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But if not, what has
education brought?

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Maybe nothing.

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People might not necessarily see
the value of the education

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that's imparted as being that
great, unless you can make it

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00:07:08,670 --> 00:07:12,590
to being a doctor, which would
be great, but is a

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bit more of a leap.

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AUDIENCE: I just have
a question.

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So I figured how many children
were in the household.

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My understanding is that they
only send one to school, like

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the impact that has on the
children who aren't in school.

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I know the mom at least said
that she wasn't happy as she

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would like to be [INAUDIBLE]
education [INAUDIBLE].

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But is that mindset perpetuated
because you have a

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child who's going to school kind
of puts you in further

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[INAUDIBLE] your current
circumstances, which could

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pose another problem.

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ESTHER DUFLO: That's an
interesting question.

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For example, the sister
of this girl, Yaprak.

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what's her name?

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Was [? Meemet. ?]

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She wasn't in school, because
she was too old to benefit

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from the compulsory education.

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So on the one hand, she gets
some indirect benefits,

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[INAUDIBLE]

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benefits from the fact that
Yaprak is educated.

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On the other hand, she also
gets like these education

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envy, and feels that, oh, it
would have been great if I

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could have been educated
myself.

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So that's an interesting
point.

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AUDIENCE: We kind of spoke about
this before, but just

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00:08:28,564 --> 00:08:30,840
the idea of the value of
education and what are the

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returns to it?

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So when you're most poor, you're
just kind of raising

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everything higher.

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When you think about education,
the returns are

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going to be much farther off.

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This was sort of mentioned, but
you get to a certain point

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and you need some education,
then after a while, it's kind

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of like, well, you'll probably
be more valuable if you just

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stayed home and helped
out around the house.

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There's a dichotomy, I guess,
between the social pressure

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for education and the
home pressure to

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help your family out.

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We need to eat tomorrow,
so this is a

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little bit more important.

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00:09:06,940 --> 00:09:10,060
You'll be able to go to school
when you feel like it, or when

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you get a little bit older.

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00:09:10,780 --> 00:09:13,302
Or maybe you won't need to go
to school because we need a

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00:09:13,302 --> 00:09:14,720
survivor now.

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ESTHER DUFLO: Right, so there's
another cost of that

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in the cost of getting yourself
to school, and that

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00:09:20,290 --> 00:09:22,880
now the government is paying for
the bus, and is paying for

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00:09:22,880 --> 00:09:23,830
the school, et cetera.

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But there is another cost, which
is in economic jargon we

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call the opportunity cost,
which is while you're in

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school, you're not helping
out on the house.

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And that is something that is
mentioned in the movie at some

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00:09:37,270 --> 00:09:39,510
point, where they're saying,
well, that's kind of one

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00:09:39,510 --> 00:09:42,170
reason why people are not
complying to the objectives.

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00:09:42,170 --> 00:09:44,940
People are feeling that they
are getting on their house.

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00:09:44,940 --> 00:09:46,620
And you said it exactly right.

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There is a trade off.

218
00:09:48,880 --> 00:09:51,540
Even if you don't bear the
direct cost of schooling like

219
00:09:51,540 --> 00:09:54,110
is the case here, there is
a trade off between the

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00:09:54,110 --> 00:09:56,620
opportunity cost, when you're
losing the value of the child

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work now, and the benefits
that are far out in the

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00:09:59,410 --> 00:10:03,110
future, potentially very far out
in the future if you think

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00:10:03,110 --> 00:10:05,430
that it's worth getting an
education, only if you can

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00:10:05,430 --> 00:10:07,518
become a doctor.

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00:10:07,518 --> 00:10:09,718
AUDIENCE: I was going to say, if
the child goes back to the

226
00:10:09,718 --> 00:10:12,505
village, then they just wasted
their time, essentially, if

227
00:10:12,505 --> 00:10:13,880
they weren't helping out.

228
00:10:13,880 --> 00:10:15,610
ESTHER DUFLO: So that is the
debate that they have at some

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00:10:15,610 --> 00:10:18,740
point, which is at least some
people feel that if you go

230
00:10:18,740 --> 00:10:23,000
back to the village, you
just wasted your time.

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00:10:23,000 --> 00:10:24,980
So the only value is
to being a doctor.

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And at the same time they
realize that it's not super

233
00:10:28,400 --> 00:10:30,750
likely that it happens.

234
00:10:30,750 --> 00:10:34,410
And then in general, if someone
says that it's easier

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00:10:34,410 --> 00:10:37,950
for men than for women to get
jobs outside the village,

236
00:10:37,950 --> 00:10:40,060
there might be the other point
I made earlier, that they

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00:10:40,060 --> 00:10:42,080
might not want the girls
to really leave to

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00:10:42,080 --> 00:10:43,570
be outside the village.

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00:10:43,570 --> 00:10:46,480
They might accept for them to
leave to be a doctor, but they

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00:10:46,480 --> 00:10:53,460
might be less likely to let them
leave to man a register

241
00:10:53,460 --> 00:10:58,950
in a supermarket, which maybe is
a job you could get with a

242
00:10:58,950 --> 00:11:01,100
good education without
continuing.

243
00:11:01,100 --> 00:11:04,287
And so if you're not going to
leave the village to take that

244
00:11:04,287 --> 00:11:07,690
job, and they feel that there
is no value in between, then

245
00:11:07,690 --> 00:11:12,720
you would have no reason to
pay the opportunity cost.

246
00:11:12,720 --> 00:11:16,780
So that's where kind of this
debate or tension comes up.

247
00:11:16,780 --> 00:11:18,646
Is any of it valuable?

248
00:11:18,646 --> 00:11:22,410
Or is it only valuable if I
achieve a sufficient amount to

249
00:11:22,410 --> 00:11:26,430
really get like the lottery
ticket of having a chance to

250
00:11:26,430 --> 00:11:27,680
become a doctor.

251
00:11:31,250 --> 00:11:37,490
So what does this bring, this
idea that the benefits of

252
00:11:37,490 --> 00:11:45,310
education may or may not be
obtained from the first years

253
00:11:45,310 --> 00:11:47,420
of education?

254
00:11:47,420 --> 00:11:51,230
We might be able to obtain
them only if

255
00:11:51,230 --> 00:11:53,290
we get enough education.

256
00:11:53,290 --> 00:11:58,430
What does that remind you
of that we have seen?

257
00:11:58,430 --> 00:12:00,170
It's that idea of the S shape.

258
00:12:00,170 --> 00:12:03,880
So the question, and here,
again, at this level, as usual

259
00:12:03,880 --> 00:12:04,750
it's a question.

260
00:12:04,750 --> 00:12:07,440
Is there S shape in education?

261
00:12:07,440 --> 00:12:11,475
So are the first few years of
education valuable, because

262
00:12:11,475 --> 00:12:14,360
you learn how to socialize.

263
00:12:14,360 --> 00:12:15,250
That's what they said
in the movie.

264
00:12:15,250 --> 00:12:16,190
You learn how to socialize.

265
00:12:16,190 --> 00:12:17,660
You learn family planning.

266
00:12:17,660 --> 00:12:22,190
You learn maybe to read the
instruction in the packet of

267
00:12:22,190 --> 00:12:25,700
fertilizer for when you
come back to the farm.

268
00:12:25,700 --> 00:12:28,310
So there might be reason to
think that even the first

269
00:12:28,310 --> 00:12:30,920
years of educations
would be valuable.

270
00:12:30,920 --> 00:12:33,310
Or is it the case that the first
year of education are

271
00:12:33,310 --> 00:12:35,606
not really valuable, that the
only thing that's worth it is

272
00:12:35,606 --> 00:12:37,410
a college education.

273
00:12:37,410 --> 00:12:40,180
And the first year of education,
all that gives you

274
00:12:40,180 --> 00:12:46,910
is the option value of going to
high school and college if

275
00:12:46,910 --> 00:12:49,150
you want to.

276
00:12:49,150 --> 00:12:51,820
The latter case is a case where
there is an S shape.

277
00:12:51,820 --> 00:12:55,910
So unless you get enough
education, it's not worth it.

278
00:12:55,910 --> 00:12:59,870
At the former case is a case
where there is no S shape.

279
00:12:59,870 --> 00:13:03,300
And so one empirical question is
whether it's actually an S

280
00:13:03,300 --> 00:13:05,720
shape or it's actually
not an S shape.

281
00:13:05,720 --> 00:13:09,160
Another empirical question,
of course, is the value of

282
00:13:09,160 --> 00:13:12,000
education, whatever the
shape the overall

283
00:13:12,000 --> 00:13:13,670
level of the benefits.

284
00:13:13,670 --> 00:13:17,180
And the third question is what
people are thinking?

285
00:13:17,180 --> 00:13:20,200
Because even if it's in fact
linear, if people think that

286
00:13:20,200 --> 00:13:22,080
it's actually S shape,
then it's going to

287
00:13:22,080 --> 00:13:24,193
influence their behavior.

288
00:13:24,193 --> 00:13:27,990
And it's going to influence
the choice

289
00:13:27,990 --> 00:13:29,470
that they are making.

290
00:13:29,470 --> 00:13:32,195
So for example here, they have
all these discussions about is

291
00:13:32,195 --> 00:13:36,390
it even worth it to send the
kids to school or not.

292
00:13:36,390 --> 00:13:39,170
And they never question the fact
that it would be great if

293
00:13:39,170 --> 00:13:40,780
she could become a doctor.

294
00:13:40,780 --> 00:13:43,200
But they might question the
fact that there might be a

295
00:13:43,200 --> 00:13:46,050
value of anything below
being a doctor.

296
00:13:50,330 --> 00:13:52,245
Is there anything else that
comes out of this?

297
00:13:54,890 --> 00:13:55,842
Yeah?

298
00:13:55,842 --> 00:13:57,270
AUDIENCE: I think Ben
might have talked.

299
00:13:57,270 --> 00:14:00,130
I heard him say something
about cultural--

300
00:14:00,130 --> 00:14:04,083
but just the idea of the head
scarves, the preventing of the

301
00:14:04,083 --> 00:14:08,075
girls from going to school,
and then the idea of Kurds

302
00:14:08,075 --> 00:14:14,063
being assimilated as opposed to
being integrated in a way

303
00:14:14,063 --> 00:14:16,059
that helps them maintain
their culture.

304
00:14:16,059 --> 00:14:18,055
Again, that's something
that would deter me

305
00:14:18,055 --> 00:14:19,080
from going to school.

306
00:14:19,080 --> 00:14:22,850
ESTHER DUFLO: Right, so that's
kind of the convex combination

307
00:14:22,850 --> 00:14:27,230
of the two points, Ben's point
and the point about once you

308
00:14:27,230 --> 00:14:31,950
send them to boarding school,
they're not under your thumb.

309
00:14:31,950 --> 00:14:36,210
You can't check what they are
doing anymore, which is

310
00:14:36,210 --> 00:14:39,315
reinforcing in Turkey that's
it's not allowed to wear a

311
00:14:39,315 --> 00:14:41,170
head scarf in school.

312
00:14:41,170 --> 00:14:46,390
So from the beginning, there
is a conflict there.

313
00:14:46,390 --> 00:14:49,590
Is school aware of
indoctrinating the kids away

314
00:14:49,590 --> 00:14:52,890
from what you would like, under
the guise of providing

315
00:14:52,890 --> 00:14:56,090
them with valuable skills
in the labor market?

316
00:14:56,090 --> 00:14:58,460
And there is certainly some
amount of that, to be honest,

317
00:14:58,460 --> 00:15:00,088
that's actually said by them.

318
00:15:05,460 --> 00:15:09,110
The only thing we missed
from the movie--

319
00:15:09,110 --> 00:15:11,620
well, we might have missed a bit
more-- but the only piece

320
00:15:11,620 --> 00:15:15,510
we missed that I remember and
is worth pointing out is the

321
00:15:15,510 --> 00:15:21,900
woman with the hair like that
who speaks with this very posh

322
00:15:21,900 --> 00:15:25,430
English accent, the columnist
from The Economist.

323
00:15:25,430 --> 00:15:27,180
She has the last word.

324
00:15:27,180 --> 00:15:30,970
And she mentions one thing that
might be worth pointing

325
00:15:30,970 --> 00:15:35,220
out, which is this is compulsory
education.

326
00:15:35,220 --> 00:15:38,210
This drive to compulsory
education was very much of a

327
00:15:38,210 --> 00:15:42,090
top down intervention, was done
without any consultation,

328
00:15:42,090 --> 00:15:44,400
or anybody, which is done.

329
00:15:44,400 --> 00:15:47,360
And the way the schools are run
is run in this completely

330
00:15:47,360 --> 00:15:50,680
centralized way, with a
centralized curriculum, with

331
00:15:50,680 --> 00:15:54,170
the teachers appointed from the
center, the kids driven to

332
00:15:54,170 --> 00:15:55,920
boarding school, et cetera.

333
00:15:55,920 --> 00:16:00,130
And she says that that's not
going to work, that people are

334
00:16:00,130 --> 00:16:06,270
not going to accept or not going
to really be in the mood

335
00:16:06,270 --> 00:16:09,870
or thought to be really groovy
about the whole education

336
00:16:09,870 --> 00:16:12,200
thing, unless they're
given some autonomy

337
00:16:12,200 --> 00:16:14,210
in running the schools.

338
00:16:14,210 --> 00:16:16,460
So that's an important point,
because that's the point that

339
00:16:16,460 --> 00:16:23,470
many people make, that any
effort at top down education

340
00:16:23,470 --> 00:16:26,610
will meet some resistance
from the people.

341
00:16:26,610 --> 00:16:29,950
They might still go because
they have to go, but the

342
00:16:29,950 --> 00:16:31,340
parents won't be very engaged.

343
00:16:31,340 --> 00:16:32,760
The children won't
be very engaged.

344
00:16:32,760 --> 00:16:34,610
The teachers might not
be very engaged.

345
00:16:34,610 --> 00:16:36,900
And nothing will happen.

346
00:16:36,900 --> 00:16:39,020
So we keep that in mind.

347
00:16:39,020 --> 00:16:41,600
I'm channeling her, because I
want to keep that in mind as

348
00:16:41,600 --> 00:16:43,120
we have the discussion.

349
00:16:43,120 --> 00:16:49,480
Because this tension between
education, board-funded top

350
00:16:49,480 --> 00:16:55,940
down, and education, emerging
from the bottom up, is one of

351
00:16:55,940 --> 00:16:57,865
the central debates
in education.

352
00:17:00,390 --> 00:17:03,660
So I think you guys said a
lot of the things that I

353
00:17:03,660 --> 00:17:05,420
wanted to touch on.

354
00:17:05,420 --> 00:17:11,119
Let me kind of make sure that
we have everything together.

355
00:17:11,119 --> 00:17:15,609
So the stories of a Kurdish
girl who goes to boarding

356
00:17:15,609 --> 00:17:18,069
school after education was made

357
00:17:18,069 --> 00:17:21,800
compulsory until grade eight.

358
00:17:21,800 --> 00:17:24,869
So many important themes
appear in the movie.

359
00:17:24,869 --> 00:17:26,180
I think we mentioned them.

360
00:17:26,180 --> 00:17:29,540
One are all the questions about
the supply of education,

361
00:17:29,540 --> 00:17:34,470
so that seems to have been a
constraint before this big

362
00:17:34,470 --> 00:17:37,280
education push from the Turkish
government and still

363
00:17:37,280 --> 00:17:39,750
is a constraint.

364
00:17:39,750 --> 00:17:41,680
There is no schools in
the remote villages.

365
00:17:41,680 --> 00:17:43,860
The roads are bad.

366
00:17:43,860 --> 00:17:45,920
Transportation is difficult.

367
00:17:45,920 --> 00:17:49,260
There is a shortage of
well-trained teachers.

368
00:17:49,260 --> 00:17:56,110
Therefore there is a large class
size, and the teachers

369
00:17:56,110 --> 00:17:59,030
are moving, what you were saying
about the teachers

370
00:17:59,030 --> 00:18:01,800
coming from far away not being
necessarily the best teacher,

371
00:18:01,800 --> 00:18:03,050
most motivated teacher.

372
00:18:06,470 --> 00:18:10,950
For part of the international
community, these types of

373
00:18:10,950 --> 00:18:14,760
constraint are the only thing
you have to worry about.

374
00:18:14,760 --> 00:18:19,755
I think you guys have all seen
a picture of a little African

375
00:18:19,755 --> 00:18:22,790
girl in a village saying, that
if only she had a school, she

376
00:18:22,790 --> 00:18:26,400
would study until she would
become a doctor.

377
00:18:26,400 --> 00:18:29,540
So there is a whole branch of
the international community,

378
00:18:29,540 --> 00:18:34,390
governments, et cetera, for whom
the only problems with

379
00:18:34,390 --> 00:18:38,280
education are supply problems,
and if only we could get rid

380
00:18:38,280 --> 00:18:40,270
of the supply problem and make
sure there are enough

381
00:18:40,270 --> 00:18:43,080
well-trained teachers, then the
kids would go to school.

382
00:18:43,080 --> 00:18:44,250
They would learn something
in school.

383
00:18:44,250 --> 00:18:46,400
And they would all
be very educated.

384
00:18:46,400 --> 00:18:50,490
So the problem is a problem of
fixing the supply constraint.

385
00:18:50,490 --> 00:18:54,460
But what we see in the movie is
that these are not the only

386
00:18:54,460 --> 00:18:55,610
constraints.

387
00:18:55,610 --> 00:18:58,010
So the reason why it's relevant
is that a lot of the

388
00:18:58,010 --> 00:19:02,620
international community, a lot
of the policy was in aid.

389
00:19:02,620 --> 00:19:06,700
And the policies implemented
by the government have that

390
00:19:06,700 --> 00:19:09,610
flavor in mind, which is let's
fix the supply problem.

391
00:19:09,610 --> 00:19:12,870
So for example, a lot of African
countries have gotten

392
00:19:12,870 --> 00:19:17,900
rid of school fees completely to
make sure school was free.

393
00:19:17,900 --> 00:19:20,160
You go to a country like Kenya,
and there is a school

394
00:19:20,160 --> 00:19:24,300
every 25 meters, because every
community who wants a school

395
00:19:24,300 --> 00:19:25,600
can gets one.

396
00:19:25,600 --> 00:19:29,100
So there is plenty of schools.

397
00:19:29,100 --> 00:19:32,090
In some sense, one could say too
many schools in that the

398
00:19:32,090 --> 00:19:36,410
class size is actually quite
small at the top.

399
00:19:36,410 --> 00:19:40,550
And in India, it's
the same thing.

400
00:19:40,550 --> 00:19:43,640
India is debating a right to
education, where if you don't

401
00:19:43,640 --> 00:19:48,770
have a school right near your
village, you can get one.

402
00:19:48,770 --> 00:19:52,440
But what we see in the movie
is that it's not the supply

403
00:19:52,440 --> 00:19:54,810
constraint, not having a school
near you, et cetera, is

404
00:19:54,810 --> 00:19:56,060
not the new problem.

405
00:19:59,290 --> 00:20:03,360
In fact, Turkey is not only
building schools, and building

406
00:20:03,360 --> 00:20:06,180
these boarding schools, and
having kids travel in

407
00:20:06,180 --> 00:20:09,840
minibuses to go to the school,
they also made education

408
00:20:09,840 --> 00:20:11,730
compulsory.

409
00:20:11,730 --> 00:20:14,410
And if the only problem was
supply, then making education

410
00:20:14,410 --> 00:20:16,900
compulsory would not
be necessary.

411
00:20:16,900 --> 00:20:18,850
You would put the schools there
and people would be

412
00:20:18,850 --> 00:20:20,170
delighted to go.

413
00:20:20,170 --> 00:20:24,610
And you wouldn't need
any compulsion.

414
00:20:24,610 --> 00:20:27,670
In fact, Turkey decided that the
only way that they could

415
00:20:27,670 --> 00:20:31,117
get a fast increasing education
was to make

416
00:20:31,117 --> 00:20:32,880
education compulsory.

417
00:20:32,880 --> 00:20:35,730
So implicitly, there is the
argument that, well, maybe

418
00:20:35,730 --> 00:20:39,240
people would not want to
go to all the schools.

419
00:20:39,240 --> 00:20:42,710
So there must be a demand
constraint as well.

420
00:20:42,710 --> 00:20:46,280
There must be a lower demand
for education.

421
00:20:46,280 --> 00:20:48,250
So what constrained them?

422
00:20:48,250 --> 00:20:49,300
We mentioned that.

423
00:20:49,300 --> 00:20:51,240
One is no economic resources.

424
00:20:51,240 --> 00:20:53,000
So they don't have money.

425
00:20:53,000 --> 00:20:56,400
So this in principle, the direct
cost of education can

426
00:20:56,400 --> 00:21:01,640
be compensated by making
education free by paying for

427
00:21:01,640 --> 00:21:04,720
books, by paying for
transportation.

428
00:21:04,720 --> 00:21:06,580
But there is also the need
for child labor.

429
00:21:06,580 --> 00:21:07,780
It was mentioned in the movie.

430
00:21:07,780 --> 00:21:12,160
The kids who are in school are
not helping on the farm.

431
00:21:12,160 --> 00:21:15,910
Then there is the need to get
married, which was mentioned

432
00:21:15,910 --> 00:21:18,580
by Yaprak's sister.

433
00:21:18,580 --> 00:21:19,920
She says, now I need
to get married.

434
00:21:19,920 --> 00:21:22,640
And you can be married and
in boarding school.

435
00:21:22,640 --> 00:21:26,190
In principle you could, but it's
not very frequent that

436
00:21:26,190 --> 00:21:28,430
you would be both married
and in boarding school.

437
00:21:28,430 --> 00:21:30,650
So this is not a cost effect.

438
00:21:30,650 --> 00:21:36,330
This is something which
is more about culture.

439
00:21:36,330 --> 00:21:39,120
Maybe the husband wants
a young wife.

440
00:21:39,120 --> 00:21:42,300
Or there is something different
than just a strict

441
00:21:42,300 --> 00:21:43,480
opportunity cost effect.

442
00:21:43,480 --> 00:21:45,820
Like, why do they think that
it's important to get married

443
00:21:45,820 --> 00:21:48,960
early instead of continuing
schooling?

444
00:21:48,960 --> 00:21:53,070
So these are only important
because they're mentioned.

445
00:21:53,070 --> 00:21:55,590
And there are the benefits.

446
00:21:55,590 --> 00:21:57,940
Is it useful?

447
00:21:57,940 --> 00:22:02,540
Or is it useful only if you
get enough education?

448
00:22:02,540 --> 00:22:06,040
If it's useful, do parents
know that it is useful?

449
00:22:06,040 --> 00:22:08,225
What do they expect
of education?

450
00:22:08,225 --> 00:22:11,130
Do they expect that education
is making their child

451
00:22:11,130 --> 00:22:14,020
generally better at
living their life?

452
00:22:14,020 --> 00:22:18,190
I'll do they see
education as--

453
00:22:18,190 --> 00:22:20,710
the woman employs a term that
is interesting-- it's almost

454
00:22:20,710 --> 00:22:23,090
like a foreign currency.

455
00:22:23,090 --> 00:22:25,010
So people see your education
diploma.

456
00:22:25,010 --> 00:22:28,640
Do you see that as something
that if you get enough of it,

457
00:22:28,640 --> 00:22:31,710
you can actually sell
to the market?

458
00:22:31,710 --> 00:22:33,730
What is enough?

459
00:22:33,730 --> 00:22:37,490
Is it a foreign currency that
you could get a few cents of

460
00:22:37,490 --> 00:22:38,650
and that would be good enough?

461
00:22:38,650 --> 00:22:41,080
Or is it a foreign currency that
you need a big packet of

462
00:22:41,080 --> 00:22:42,540
to be worthwhile?

463
00:22:42,540 --> 00:22:45,660
And in the movie, what was
interesting was is that we saw

464
00:22:45,660 --> 00:22:48,780
different people having
different views about whether

465
00:22:48,780 --> 00:22:51,170
it is a foreign currency, that
is, you have to take it

466
00:22:51,170 --> 00:22:52,840
elsewhere to benefit from it?

467
00:22:52,840 --> 00:22:55,560
Whereas you could also benefit
from it just in your general

468
00:22:55,560 --> 00:22:59,230
my life, with having fewer,
healthier children, being more

469
00:22:59,230 --> 00:23:00,480
socialized?

470
00:23:02,760 --> 00:23:06,660
I think it's again Yaprak
sister who sees another

471
00:23:06,660 --> 00:23:10,510
advantage of education for girls
in that it is going to

472
00:23:10,510 --> 00:23:13,660
increase her bargaining power
within the family.

473
00:23:13,660 --> 00:23:17,610
Since traditionally girls are
quiet and don't say anything

474
00:23:17,610 --> 00:23:20,280
and men have all the power, and
if girls get education,

475
00:23:20,280 --> 00:23:21,540
that is going to improve
their bargaining

476
00:23:21,540 --> 00:23:23,470
power within the family.

477
00:23:23,470 --> 00:23:27,050
And that is something that girls
may find very attractive

478
00:23:27,050 --> 00:23:31,000
and their future husbands might
find less attractive.

479
00:23:31,000 --> 00:23:32,720
And here the question
is what are the

480
00:23:32,720 --> 00:23:34,020
fathers going to think?

481
00:23:37,340 --> 00:23:43,020
Yaprak's father, on the one
hand, probably he has in mind

482
00:23:43,020 --> 00:23:47,170
the value of keeping the
girls in their place.

483
00:23:47,170 --> 00:23:49,230
On the other hand, he
likes his daughter.

484
00:23:49,230 --> 00:23:53,250
So there is probably a conflict
within him between

485
00:23:53,250 --> 00:23:57,810
the fact that as a man, he
doesn't want to conflict with

486
00:23:57,810 --> 00:24:01,140
his wife, so we would rather
the woman being lower down,

487
00:24:01,140 --> 00:24:03,750
but as a father probably likes
his daughter more than his son

488
00:24:03,750 --> 00:24:07,360
in law, who doesn't
even exist yet.

489
00:24:07,360 --> 00:24:12,900
So there might be a conflict
here in his preferences which

490
00:24:12,900 --> 00:24:15,420
might easily lead him to say,
fine, she should get an

491
00:24:15,420 --> 00:24:19,160
education or no, we want
to move forward.

492
00:24:19,160 --> 00:24:22,690
And what is interesting in the
movie is that he clearly sees

493
00:24:22,690 --> 00:24:25,150
himself as a bit of a
[INAUDIBLE] leader and a

494
00:24:25,150 --> 00:24:27,100
modern character.

495
00:24:27,100 --> 00:24:32,530
So he seemed to have concluded
this debate from his point of

496
00:24:32,530 --> 00:24:36,276
view to say that OK,
I'll send her.

497
00:24:36,276 --> 00:24:37,698
AUDIENCE: I have a question.

498
00:24:37,698 --> 00:24:41,077
I'm wondering with that attitude
if it's sort of like

499
00:24:41,077 --> 00:24:44,973
we'll just indulge the girls for
a while and let them go to

500
00:24:44,973 --> 00:24:48,869
school, but we know secretly
that we're still going to take

501
00:24:48,869 --> 00:24:53,252
the power we have and not
actually concede anything and

502
00:24:53,252 --> 00:24:55,210
respect the fact that
they [INAUDIBLE].

503
00:24:55,210 --> 00:24:56,900
ESTHER DUFLO: Right, so there
might be a little bit of that.

504
00:24:56,900 --> 00:24:59,420
So just to repeat the question,
the question was,

505
00:24:59,420 --> 00:25:03,490
are they just indulging them
for a little while and then

506
00:25:03,490 --> 00:25:06,315
going to bring them
back in line?

507
00:25:06,315 --> 00:25:09,790
And then education is more
like it's not seen as an

508
00:25:09,790 --> 00:25:12,480
investment anymore, but more
consumption value for the

509
00:25:12,480 --> 00:25:15,850
girl, since the government is
providing it for free and

510
00:25:15,850 --> 00:25:17,340
she's kind of a bit too
young to be really

511
00:25:17,340 --> 00:25:19,790
helpful in the farm.

512
00:25:19,790 --> 00:25:23,580
Let's get her get an education,
but we kind of know

513
00:25:23,580 --> 00:25:24,970
that at the end of the
day, it's not going

514
00:25:24,970 --> 00:25:26,300
to change her life.

515
00:25:26,300 --> 00:25:28,670
And we certainly maybe hope that
it's not going to change

516
00:25:28,670 --> 00:25:29,650
her attitude.

517
00:25:29,650 --> 00:25:32,020
What's interesting is that if
this is what people had in

518
00:25:32,020 --> 00:25:34,480
mind is that that's clearly
not her view.

519
00:25:34,480 --> 00:25:38,100
So that might be a little bit
of disconnect here, which

520
00:25:38,100 --> 00:25:40,590
would be in her advantage
in terms of when

521
00:25:40,590 --> 00:25:42,700
she gets the education.

522
00:25:42,700 --> 00:25:46,580
So here if we're thinking of
these bargaining power issues

523
00:25:46,580 --> 00:25:51,600
and this potential conflict
withing the father between his

524
00:25:51,600 --> 00:25:53,990
goal as a husband where he wants
to keep the power, and

525
00:25:53,990 --> 00:25:57,260
his goal as a father, where he
would like probably her to

526
00:25:57,260 --> 00:26:03,780
have some power, is that that
may change with economic goals

527
00:26:03,780 --> 00:26:08,430
in the society and what are the
opportunities he sees for

528
00:26:08,430 --> 00:26:10,810
her to do something with
the education.

529
00:26:10,810 --> 00:26:13,900
If the society's completely
paralyzed, then in a way the

530
00:26:13,900 --> 00:26:17,540
benefits of education are very
high for her, so he has less

531
00:26:17,540 --> 00:26:20,165
of a reason to want
to go to it.

532
00:26:20,165 --> 00:26:22,350
AUDIENCE: Just from watching the
video, it seems like it is

533
00:26:22,350 --> 00:26:25,179
possible for them to combine
both the cultural values and

534
00:26:25,179 --> 00:26:26,040
the value of education.

535
00:26:26,040 --> 00:26:30,320
Like for instance, clearly it
is a male-dominated society,

536
00:26:30,320 --> 00:26:33,918
but here we watch the scenes
where there's a bunch of men,

537
00:26:33,918 --> 00:26:35,060
sitting around, and
they're talking

538
00:26:35,060 --> 00:26:35,970
the value of education.

539
00:26:35,970 --> 00:26:37,735
It's still the women who
are serving them tea

540
00:26:37,735 --> 00:26:39,130
or whatever it was.

541
00:26:39,130 --> 00:26:42,152
And they still see the women,
the girl who is getting the

542
00:26:42,152 --> 00:26:44,000
education, she's still
helping with the

543
00:26:44,000 --> 00:26:45,346
children and all that.

544
00:26:45,346 --> 00:26:47,300
So it seems like--

545
00:26:47,300 --> 00:26:49,210
ESTHER DUFLO: Yeah, it is
possible that even with the

546
00:26:49,210 --> 00:26:53,960
education they are still going
to maintain the differences.

547
00:26:53,960 --> 00:26:57,210
What is interesting is that
there is a level question and

548
00:26:57,210 --> 00:27:00,610
a slope question, which is it
is possible that the girls

549
00:27:00,610 --> 00:27:05,280
have so far to go that getting
an education wouldn't be

550
00:27:05,280 --> 00:27:07,930
sufficient to make them
become equal.

551
00:27:07,930 --> 00:27:10,940
But that would still go
in that direction.

552
00:27:10,940 --> 00:27:13,680
And at least some of them seem
to have the hope that it would

553
00:27:13,680 --> 00:27:15,580
bring it in that direction.

554
00:27:15,580 --> 00:27:17,600
But you're right.

555
00:27:17,600 --> 00:27:21,630
So those are the expected
benefits of education.

556
00:27:21,630 --> 00:27:24,500
And then there is what worries
them about the schools.

557
00:27:24,500 --> 00:27:27,370
We've mentioned the culturalized
assimilation, the

558
00:27:27,370 --> 00:27:32,070
fact that it might be like a
covert way to assimilate them

559
00:27:32,070 --> 00:27:35,900
to a culture that's not theirs,
and the fact that

560
00:27:35,900 --> 00:27:40,440
maybe there are no benefits, the
fact that just if sending

561
00:27:40,440 --> 00:27:42,810
the kids away is not
a very good thing.

562
00:27:42,810 --> 00:27:47,160
Potentially they are
worried about them.

563
00:27:47,160 --> 00:27:48,780
So these are the
demand issues.

564
00:27:48,780 --> 00:27:51,160
So the demand issues are a
little bit tricky, because

565
00:27:51,160 --> 00:27:54,640
depending on how this thing
balances out, what are the

566
00:27:54,640 --> 00:27:57,330
benefits they see versus the
feel they have versus the

567
00:27:57,330 --> 00:27:59,600
immediate cost of not having
the kids on the farm.

568
00:27:59,600 --> 00:28:03,990
Or the decision of sending the
kids or not sending the kids

569
00:28:03,990 --> 00:28:07,160
is not obvious, even if
education is free.

570
00:28:07,160 --> 00:28:10,550
And making education compulsory,
of course, pushes

571
00:28:10,550 --> 00:28:11,800
them in that direction.

572
00:28:14,760 --> 00:28:18,620
So is benefits of education that
are touched upon in the

573
00:28:18,620 --> 00:28:21,030
movie are of different kinds.

574
00:28:21,030 --> 00:28:24,810
There is this foreign currency
idea-- you get a job.

575
00:28:24,810 --> 00:28:26,390
You get a higher wage.

576
00:28:26,390 --> 00:28:29,240
They hope that the girl is
going to be a doctor.

577
00:28:29,240 --> 00:28:32,850
So the issue is can everybody
become a doctor?

578
00:28:32,850 --> 00:28:34,770
And probably not.

579
00:28:34,770 --> 00:28:36,910
So even though they don't say
it in the movie, they must

580
00:28:36,910 --> 00:28:39,350
have in the corner of their mind
that they're not quite

581
00:28:39,350 --> 00:28:40,790
sure that she's going
to make it.

582
00:28:40,790 --> 00:28:43,550
They sort of say it, but they're
not quite sure it's

583
00:28:43,550 --> 00:28:44,640
going to make it.

584
00:28:44,640 --> 00:28:47,930
And that uncertainty and the
fact that the objective is so

585
00:28:47,930 --> 00:28:51,670
hard certainly has some impact
in how serious it is to take

586
00:28:51,670 --> 00:28:53,930
the whole thing.

587
00:28:53,930 --> 00:29:01,080
And then there is the
possibility that just getting

588
00:29:01,080 --> 00:29:04,920
an education would help in
your job, doing your job

589
00:29:04,920 --> 00:29:06,990
better, even if your job
is to be a farmer,

590
00:29:06,990 --> 00:29:09,410
coming back to the farm.

591
00:29:09,410 --> 00:29:11,480
And nobody seems to
really say that.

592
00:29:11,480 --> 00:29:13,560
It's only mentioned in a
negative way, which is if only

593
00:29:13,560 --> 00:29:17,080
they taught something useful
like home economics then maybe

594
00:29:17,080 --> 00:29:20,870
we would be able to have some
benefits of this education.

595
00:29:20,870 --> 00:29:22,140
But that's not what
they are doing.

596
00:29:22,140 --> 00:29:25,100
And so maybe education is
useless or is seen as being

597
00:29:25,100 --> 00:29:28,050
useless at the lower level.

598
00:29:28,050 --> 00:29:30,990
Then there are the non-monetary
dimensions of

599
00:29:30,990 --> 00:29:33,450
getting an education.

600
00:29:33,450 --> 00:29:35,830
Girls will become
more socialized.

601
00:29:35,830 --> 00:29:38,500
The family planning, they'll
have more friends and know how

602
00:29:38,500 --> 00:29:43,310
to interact with people in
the city, et cetera.

603
00:29:43,310 --> 00:29:45,630
And then there is the idea of
learning things that you can

604
00:29:45,630 --> 00:29:46,910
teach others.

605
00:29:46,910 --> 00:29:49,290
So the one guy who has an
college education in these

606
00:29:49,290 --> 00:29:52,475
men's discussion, he goes and
say, well, let them get an

607
00:29:52,475 --> 00:29:55,530
education, come back, and
teach us some stuff.

608
00:29:55,530 --> 00:30:00,210
And so this is the external
spill-over value of education,

609
00:30:00,210 --> 00:30:03,100
which is the opposite than the
one that Ben had mentioned,

610
00:30:03,100 --> 00:30:04,430
which was the education envy.

611
00:30:04,430 --> 00:30:08,220
But it's the idea that if I get
an education, if there is

612
00:30:08,220 --> 00:30:10,770
some benefits, for example,
I learn how to read the

613
00:30:10,770 --> 00:30:14,330
instructions on the fertilizer
package, maybe I learn to use

614
00:30:14,330 --> 00:30:17,440
new technology in agriculture,
not only it can be useful for

615
00:30:17,440 --> 00:30:20,450
me, but potentially it can
be useful for others.

616
00:30:20,450 --> 00:30:23,810
So if that is the case, a
village might decide to focus

617
00:30:23,810 --> 00:30:28,180
on the smartest kids on the
block and make sure that they

618
00:30:28,180 --> 00:30:33,230
at least get an education so
that everybody benefits.

619
00:30:33,230 --> 00:30:36,770
So those are kind of the
benefits of education.

620
00:30:36,770 --> 00:30:38,820
So one empirical question
is what are the

621
00:30:38,820 --> 00:30:39,870
real benefits of education?

622
00:30:39,870 --> 00:30:42,290
The other empirical question is
what are people perceive to

623
00:30:42,290 --> 00:30:43,540
be the benefits of education?

624
00:30:46,280 --> 00:30:49,705
Another thing that he touched
upon in the movie is this top

625
00:30:49,705 --> 00:30:51,870
down versus bottom up.

626
00:30:51,870 --> 00:30:56,260
So here the government is
trying a big top down

627
00:30:56,260 --> 00:30:58,750
approach, trying to
do it very fast--

628
00:30:58,750 --> 00:31:01,890
putting all the money from the
top, making it compulsory,

629
00:31:01,890 --> 00:31:05,370
which is the ultimate top
down, and instead of

630
00:31:05,370 --> 00:31:08,840
supply-drive policy, has been,
as I was saying, popular in

631
00:31:08,840 --> 00:31:10,180
many countries.

632
00:31:10,180 --> 00:31:11,260
Many African countries--

633
00:31:11,260 --> 00:31:14,630
Kenya, Uganda, Ghana--

634
00:31:14,630 --> 00:31:18,070
have recently, relatively
recently, in the last 10 years

635
00:31:18,070 --> 00:31:20,780
or so, have adopted free primary
education and moving

636
00:31:20,780 --> 00:31:22,680
to free secondary
education now.

637
00:31:22,680 --> 00:31:24,890
India, as I was saying, has a
right to education, which

638
00:31:24,890 --> 00:31:27,240
actually allowed people, in
principle, to sue the

639
00:31:27,240 --> 00:31:28,610
government if they don't
get a school.

640
00:31:34,050 --> 00:31:45,400
So the supply drives have been
the main education policy say

641
00:31:45,400 --> 00:31:47,800
in the last three decades.

642
00:31:47,800 --> 00:31:53,720
The Millennium Development
Goal specified that every

643
00:31:53,720 --> 00:31:56,630
child should get at least a
basic education, basic goes to

644
00:31:56,630 --> 00:31:58,960
nine years of education.

645
00:31:58,960 --> 00:32:02,430
What is interesting is that
there is no mention anywhere

646
00:32:02,430 --> 00:32:03,805
that they should actually learn

647
00:32:03,805 --> 00:32:05,300
anything in those schools.

648
00:32:05,300 --> 00:32:07,450
It's sort of assumed that if
they get nine years of

649
00:32:07,450 --> 00:32:09,520
education they'll get
something out of it.

650
00:32:09,520 --> 00:32:12,740
But as we'll see, it's a
pretty big assumption.

651
00:32:12,740 --> 00:32:16,360
And there are certainly some
clear signs success of these

652
00:32:16,360 --> 00:32:18,580
big supply drives.

653
00:32:18,580 --> 00:32:21,650
Between 1999 and 2006, the
enrollment rates have

654
00:32:21,650 --> 00:32:29,350
increased, in Sub-Saharan Africa
from 54% to 70%, in

655
00:32:29,350 --> 00:32:32,270
East and Southeast Asia
from 75% to 88%.

656
00:32:32,270 --> 00:32:35,380
These are primary
schools only.

657
00:32:35,380 --> 00:32:37,960
Secondary school enrollments
have also increased, even

658
00:32:37,960 --> 00:32:39,980
though secondary school is much
more expensive, much more

659
00:32:39,980 --> 00:32:42,240
difficult to do for
governments.

660
00:32:42,240 --> 00:32:46,330
So worldwide, there are still
a bunch of millions of kids

661
00:32:46,330 --> 00:32:49,420
who are not in school, but much
less in 2006 than they

662
00:32:49,420 --> 00:32:54,350
were in 1999.

663
00:32:54,350 --> 00:32:56,660
So is it all worthwhile?

664
00:32:56,660 --> 00:33:00,190
That's the question that
Easterly is asking in the

665
00:33:00,190 --> 00:33:01,830
reading for today.

666
00:33:01,830 --> 00:33:03,080
And what is his answer?

667
00:33:08,800 --> 00:33:10,690
His answer is not that graph.

668
00:33:10,690 --> 00:33:13,710
AUDIENCE: I thought education
in itself, an increase in

669
00:33:13,710 --> 00:33:17,000
education, is not going to cause
and increase in growth.

670
00:33:17,000 --> 00:33:17,260
ESTHER DUFLO: Right.

671
00:33:17,260 --> 00:33:19,660
He is saying it's useless.

672
00:33:19,660 --> 00:33:26,620
And how does he explain that
despite the fact that it's

673
00:33:26,620 --> 00:33:28,997
used less people have
still done it?

674
00:33:28,997 --> 00:33:30,781
Yeah, go ahead.

675
00:33:30,781 --> 00:33:32,585
AUDIENCE: [INAUDIBLE].

676
00:33:32,585 --> 00:33:34,312
ESTHER DUFLO: Go ahead,
go ahead.

677
00:33:34,312 --> 00:33:38,240
AUDIENCE: I was going to say
because the increments in the

678
00:33:38,240 --> 00:33:41,200
[INAUDIBLE].

679
00:33:41,200 --> 00:33:41,920
ESTHER DUFLO: Exactly.

680
00:33:41,920 --> 00:33:48,350
So what Easterly is saying is
that you guys have been fooled

681
00:33:48,350 --> 00:33:49,600
by this graph.

682
00:33:52,000 --> 00:33:53,820
These are countries--

683
00:33:53,820 --> 00:34:03,980
USA, Romania, Paraguay,
Venezuela.

684
00:34:03,980 --> 00:34:06,870
And these are the average years
of schooling of the

685
00:34:06,870 --> 00:34:08,880
population.

686
00:34:08,880 --> 00:34:13,770
And this is the log output per
worker, relative to the US.

687
00:34:13,770 --> 00:34:16,200
So everybody is negative because
the US is a richer

688
00:34:16,200 --> 00:34:18,949
country in the world.

689
00:34:18,949 --> 00:34:21,500
And what you can see here is
that there is a pretty strong

690
00:34:21,500 --> 00:34:27,460
correlation between the log
output per worker and the

691
00:34:27,460 --> 00:34:28,610
years of schooling.

692
00:34:28,610 --> 00:34:29,750
Countries which have
more years of

693
00:34:29,750 --> 00:34:32,150
schooling are also richer.

694
00:34:32,150 --> 00:34:37,420
So one could conclude from there
that year of education

695
00:34:37,420 --> 00:34:39,310
increases income.

696
00:34:39,310 --> 00:34:42,909
And people have certainly
drawn this conclusion.

697
00:34:42,909 --> 00:34:46,193
What is his point about
this graph?

698
00:34:53,109 --> 00:34:56,073
AUDIENCE: I'm not sure this is
the point but, it's the idea

699
00:34:56,073 --> 00:34:57,555
of mobility bias.

700
00:34:57,555 --> 00:35:03,236
We have more education, perhaps
that's because we have

701
00:35:03,236 --> 00:35:04,471
some sort of mobility.

702
00:35:04,471 --> 00:35:05,953
I mean, I don't know
if this is--

703
00:35:05,953 --> 00:35:06,447
ESTHER DUFLO: This
is countries.

704
00:35:06,447 --> 00:35:08,045
AUDIENCE: --in the
national sense.

705
00:35:08,045 --> 00:35:11,140
ESTHER DUFLO: Think of it's like
he made this argument,

706
00:35:11,140 --> 00:35:14,780
not for a person, but
for a country.

707
00:35:14,780 --> 00:35:18,926
What's different about these
countries as well?

708
00:35:18,926 --> 00:35:21,878
AUDIENCE: They also
have more greed.

709
00:35:21,878 --> 00:35:25,322
Their GDPs are higher, so
they have some more

710
00:35:25,322 --> 00:35:26,310
opportunity for school.

711
00:35:26,310 --> 00:35:27,280
ESTHER DUFLO: Yes,
they are more

712
00:35:27,280 --> 00:35:28,840
flourishing for younger people.

713
00:35:28,840 --> 00:35:34,320
We run this graph with
the number of

714
00:35:34,320 --> 00:35:35,730
football team you have.

715
00:35:39,100 --> 00:35:40,140
You would have a
lot of zeroes.

716
00:35:40,140 --> 00:35:41,250
It wouldn't be such
a good graph.

717
00:35:41,250 --> 00:35:44,900
But you would have the same
relationship that places that

718
00:35:44,900 --> 00:35:47,200
play American football
are also richer.

719
00:35:47,200 --> 00:35:50,236
And we don't think it's because
of American football.

720
00:35:50,236 --> 00:35:52,273
Or I mean I don't think so.

721
00:35:52,273 --> 00:35:55,500
You may have a different view.

722
00:35:55,500 --> 00:35:58,300
So that correlation is
not very informative.

723
00:35:58,300 --> 00:36:01,480
So what he's suggesting
is to say, so

724
00:36:01,480 --> 00:36:03,400
let's not look in levels.

725
00:36:03,400 --> 00:36:05,982
Let's look in differences.

726
00:36:05,982 --> 00:36:08,270
And I couldn't find such a
nice looking graph for

727
00:36:08,270 --> 00:36:10,650
differences, but here is one.

728
00:36:10,650 --> 00:36:18,220
Now we have the difference in
human capital from it's 1990

729
00:36:18,220 --> 00:36:21,990
minus 1965.

730
00:36:21,990 --> 00:36:26,210
It's a difference in the log
other ideas of education.

731
00:36:29,140 --> 00:36:32,096
And now we put the log
difference in income.

732
00:36:32,096 --> 00:36:35,560
You could do it in level log,
except that doesn't matter.

733
00:36:35,560 --> 00:36:38,170
What's relevant in this graph
is you get a big cloud of

734
00:36:38,170 --> 00:36:41,250
points and a completely
horizontal line.

735
00:36:41,250 --> 00:36:45,050
So if I can say this graph in
words, what this is saying is

736
00:36:45,050 --> 00:36:49,220
that the countries which have
increased the most the average

737
00:36:49,220 --> 00:36:52,270
years of education of their
labor force, are the countries

738
00:36:52,270 --> 00:36:57,380
which have put more and
more kids to school

739
00:36:57,380 --> 00:36:59,800
have not become richer.

740
00:36:59,800 --> 00:37:06,630
So you compare in the Easterly
reading, he had a comparison

741
00:37:06,630 --> 00:37:09,110
between different African
countries which had made

742
00:37:09,110 --> 00:37:11,170
different levels of progress--

743
00:37:11,170 --> 00:37:14,770
so I think, so for example,
Ghana versus Madagascar, and

744
00:37:14,770 --> 00:37:17,490
saying that Ghana has increased
education more,

745
00:37:17,490 --> 00:37:19,980
Madagascar increased education
more, and Ghana is not going

746
00:37:19,980 --> 00:37:21,365
faster than Madagascar.

747
00:37:21,365 --> 00:37:23,010
Actually, I don't think
that's true anymore.

748
00:37:23,010 --> 00:37:26,210
I think subsequent to that,
Ghana has increased quite good

749
00:37:26,210 --> 00:37:28,350
and quite a bit faster
than Madagascar.

750
00:37:28,350 --> 00:37:30,970
But that's, let's say,
was the point, were

751
00:37:30,970 --> 00:37:32,875
the keys at the time.

752
00:37:35,560 --> 00:37:37,980
So now we interpret him saying,
well, when we take the

753
00:37:37,980 --> 00:37:42,800
difference out, now we are at
least seeing what has been the

754
00:37:42,800 --> 00:37:46,090
effort terms of increasing the
years of education, versus the

755
00:37:46,090 --> 00:37:48,300
gain in terms of increasing
the GDP.

756
00:37:48,300 --> 00:37:49,990
And we see no effect.

757
00:37:49,990 --> 00:37:53,370
So the level relationship was
all coming from this bias In

758
00:37:53,370 --> 00:37:56,990
fact, there's no effect of
the years of education.

759
00:37:56,990 --> 00:38:00,420
And the bias in the level of
regression are some form of

760
00:38:00,420 --> 00:38:07,210
the ability by us as USA which
countries have more education,

761
00:38:07,210 --> 00:38:12,790
because it takes money
to have teachers.

762
00:38:12,790 --> 00:38:14,380
They can afford it.

763
00:38:14,380 --> 00:38:17,870
Or maybe they choose to be
educated because when it's

764
00:38:17,870 --> 00:38:20,880
more worthwhile to get an
education if you can do

765
00:38:20,880 --> 00:38:22,470
something with that education.

766
00:38:22,470 --> 00:38:25,280
So that comes back to this
argument of what's the point

767
00:38:25,280 --> 00:38:27,300
of getting an education if
you're going to come back to

768
00:38:27,300 --> 00:38:29,060
the village anyway?

769
00:38:29,060 --> 00:38:34,080
So if education allows you
to take advantage of the

770
00:38:34,080 --> 00:38:36,920
opportunities that are afforded
by economic growth,

771
00:38:36,920 --> 00:38:39,870
then you're going to be more
willing to get an education if

772
00:38:39,870 --> 00:38:43,380
you think that the country
is going to grow a lot.

773
00:38:43,380 --> 00:38:45,450
So for all these reasons, and
you would expect more

774
00:38:45,450 --> 00:38:48,630
education in rich countries, not
because education causes

775
00:38:48,630 --> 00:38:51,860
growth, but because growths
cause education.

776
00:38:51,860 --> 00:38:54,930
So his conclusion is that
internationally driven

777
00:38:54,930 --> 00:38:58,425
investment to education were
a waste, that education is

778
00:38:58,425 --> 00:39:01,020
actually useless.

779
00:39:01,020 --> 00:39:03,320
Now there's a bunch of problems
with his argument,

780
00:39:03,320 --> 00:39:07,190
because in a sense what he is
saying is that I don't see any

781
00:39:07,190 --> 00:39:11,680
evidence across country that
there is a lot of increase in

782
00:39:11,680 --> 00:39:14,170
GDP coming from increasing
education.

783
00:39:14,170 --> 00:39:16,210
But the issue is we don't
know why these

784
00:39:16,210 --> 00:39:17,640
countries increase education.

785
00:39:17,640 --> 00:39:20,250
We don't know what would have
happened if they had not

786
00:39:20,250 --> 00:39:21,930
increased education.

787
00:39:21,930 --> 00:39:24,940
So for example, many of the
African countries that

788
00:39:24,940 --> 00:39:27,420
increased education the most
also had severe civil war

789
00:39:27,420 --> 00:39:29,330
subsequently.

790
00:39:29,330 --> 00:39:32,050
It is possible that education
caused the civil war, but it's

791
00:39:32,050 --> 00:39:33,440
not very likely.

792
00:39:33,440 --> 00:39:38,040
It is more likely that the
social tension that preexisted

793
00:39:38,040 --> 00:39:42,440
in the country caused
the civil war.

794
00:39:42,440 --> 00:39:46,300
One possible answer to the
social tension may have been,

795
00:39:46,300 --> 00:39:48,410
well, let's try and get
people an education.

796
00:39:48,410 --> 00:39:49,310
Yep?

797
00:39:49,310 --> 00:39:51,930
AUDIENCE: This is interesting
because I guess in our

798
00:39:51,930 --> 00:39:56,220
standard macro classes, you
look at a factor of A as a

799
00:39:56,220 --> 00:39:58,860
multiplicative factor that
increase in GDP.

800
00:39:58,860 --> 00:40:02,572
And typically, maybe I'm
thinking about it wrong, you

801
00:40:02,572 --> 00:40:05,790
look at that as if you have
increased education, it could

802
00:40:05,790 --> 00:40:07,770
be worth more innovation.

803
00:40:07,770 --> 00:40:11,400
If you have the technology, you
still go for the forms or

804
00:40:11,400 --> 00:40:12,150
operating a computer.

805
00:40:12,150 --> 00:40:15,650
And education helps facilitate
that group.

806
00:40:15,650 --> 00:40:19,800
So I'm a little confused as to
how you make this conjecture.

807
00:40:19,800 --> 00:40:22,266
ESTHER DUFLO: So that's
an interesting fact.

808
00:40:22,266 --> 00:40:27,230
I think in a sense, in your
macro class you may have been

809
00:40:27,230 --> 00:40:28,480
interpreting this graph.

810
00:40:31,570 --> 00:40:35,180
And there is certainly a lot of
theories for why education

811
00:40:35,180 --> 00:40:36,680
would be good for growth.

812
00:40:36,680 --> 00:40:38,350
So one of them is the
one you point out.

813
00:40:43,730 --> 00:40:45,860
This is the externality argument
that we were making

814
00:40:45,860 --> 00:40:46,900
about the movie.

815
00:40:46,900 --> 00:40:51,160
One person who is educated can
figure out some technology,

816
00:40:51,160 --> 00:40:52,890
and then everybody can
use the technology.

817
00:40:52,890 --> 00:40:54,800
So they are all these
spill-overs, which is why we

818
00:40:54,800 --> 00:40:57,385
would get this pretty strong
relationship between education

819
00:40:57,385 --> 00:40:58,320
and income.

820
00:40:58,320 --> 00:41:00,740
So there a lot of theoretical
reasons to think that there

821
00:41:00,740 --> 00:41:03,355
could be a macroeconomic
relationship between education

822
00:41:03,355 --> 00:41:04,560
and income.

823
00:41:04,560 --> 00:41:09,070
And in fact, we see one, which
is why everybody is happy

824
00:41:09,070 --> 00:41:11,070
thinking education
is a good thing.

825
00:41:11,070 --> 00:41:14,110
What Easterly is saying is just
commenting on this graph,

826
00:41:14,110 --> 00:41:16,670
which is he doesn't see
a relationship.

827
00:41:16,670 --> 00:41:18,665
Because when he does, the
relationship in differences

828
00:41:18,665 --> 00:41:22,690
now between growth and education
and growth and

829
00:41:22,690 --> 00:41:24,620
income, he doesn't see the
relationship anymore.

830
00:41:24,620 --> 00:41:25,970
AUDIENCE: How long is that?

831
00:41:25,970 --> 00:41:30,160
ESTHER DUFLO: That's 1990, 1965,
just about 30 years.

832
00:41:30,160 --> 00:41:31,050
Yup?

833
00:41:31,050 --> 00:41:32,490
AUDIENCE: I have a question.

834
00:41:32,490 --> 00:41:34,775
In Easterly's paper,
he mentions the

835
00:41:34,775 --> 00:41:38,170
productivity factor.

836
00:41:38,170 --> 00:41:40,917
And he says that only a small
percentage of this is

837
00:41:40,917 --> 00:41:44,257
accounted for by [INAUDIBLE]
capital and by machinery and

838
00:41:44,257 --> 00:41:45,990
other forms of capital.

839
00:41:45,990 --> 00:41:47,970
What is the rest of it?

840
00:41:47,970 --> 00:41:50,445
Like, what is productivity
in that case?

841
00:41:50,445 --> 00:41:53,380
ESTHER DUFLO: So that's
an excellent question.

842
00:41:53,380 --> 00:41:57,025
The answer to this question is
that's what I do what I do and

843
00:41:57,025 --> 00:41:59,120
not macroeconomics.

844
00:41:59,120 --> 00:42:04,330
If you're looking at growth
across country, and you're

845
00:42:04,330 --> 00:42:08,480
trying to account for the growth
in an pure accounting

846
00:42:08,480 --> 00:42:13,900
sense, which is to say, so
imagine that you each country

847
00:42:13,900 --> 00:42:15,660
is a big machine.

848
00:42:15,660 --> 00:42:17,870
Think of a country
as a machine.

849
00:42:17,870 --> 00:42:20,760
So there is a machine.

850
00:42:20,760 --> 00:42:24,010
There are some people to operate
the machine, labor.

851
00:42:24,010 --> 00:42:26,300
And there is some human capital
to think about how to

852
00:42:26,300 --> 00:42:27,410
operate the machine.

853
00:42:27,410 --> 00:42:29,860
And then there is some spunk.

854
00:42:29,860 --> 00:42:33,790
So think of a macroeconomy
as that.

855
00:42:33,790 --> 00:42:38,720
In letters, we write it as an A
multiplied by K, that's the

856
00:42:38,720 --> 00:42:42,660
capital, to some power, multiply
by L to some power,

857
00:42:42,660 --> 00:42:45,160
multiply by human capital
to some power.

858
00:42:45,160 --> 00:42:46,870
That's your macroeconomic
model of an income.

859
00:42:51,720 --> 00:42:53,580
We can observe K
to some extent.

860
00:42:53,580 --> 00:42:55,440
What's the capital
in the economy?

861
00:42:55,440 --> 00:43:00,480
We can observe L to a pretty
good extent, how many workers

862
00:43:00,480 --> 00:43:01,830
there are in the economy.

863
00:43:01,830 --> 00:43:05,420
We can observe H to some extent,
what is the the human

864
00:43:05,420 --> 00:43:07,235
capital, usually measured
with education.

865
00:43:12,660 --> 00:43:15,880
And the rest spunk is what
we don't observe.

866
00:43:15,880 --> 00:43:20,450
Now we can say, well, let's
look at what share of the

867
00:43:20,450 --> 00:43:24,360
level of income of the country,
differences in income

868
00:43:24,360 --> 00:43:27,520
across country, are what share
of differences in growth

869
00:43:27,520 --> 00:43:30,100
across country are explained
by those factors.

870
00:43:30,100 --> 00:43:33,010
And the answer is
not very much.

871
00:43:33,010 --> 00:43:36,360
So the answer is that we use
factors such as capital,

872
00:43:36,360 --> 00:43:39,070
labor, and human capital,
measured in this way.

873
00:43:39,070 --> 00:43:41,220
We don't explain much
of the gross

874
00:43:41,220 --> 00:43:43,040
differences across country.

875
00:43:43,040 --> 00:43:45,860
This is one of the reasons why,
which when you look at

876
00:43:45,860 --> 00:43:48,250
growth and you look at the
differences in human capital,

877
00:43:48,250 --> 00:43:50,350
there's just no relationship.

878
00:43:50,350 --> 00:43:52,910
There's a bit more with
physical capital.

879
00:43:52,910 --> 00:43:55,500
And the rest is like,
we don't know.

880
00:43:55,500 --> 00:43:59,210
So technological progress is
just a fancy term for we have

881
00:43:59,210 --> 00:44:05,670
no clue what the hell is going
on, which is to me saying that

882
00:44:05,670 --> 00:44:08,160
well, if we have no clue what
the hell is going on, then it

883
00:44:08,160 --> 00:44:11,060
means that we need to go beyond
thinking of the economy

884
00:44:11,060 --> 00:44:12,280
as one big machine.

885
00:44:12,280 --> 00:44:15,950
And we need to start to
understand what is happening.

886
00:44:15,950 --> 00:44:16,890
Look at micro level.

887
00:44:16,890 --> 00:44:21,010
That might start giving us a
sense of what might actually

888
00:44:21,010 --> 00:44:22,120
be going on.

889
00:44:22,120 --> 00:44:27,230
Because technological progress
is not just how good is the

890
00:44:27,230 --> 00:44:29,070
chip in your computer.

891
00:44:29,070 --> 00:44:33,250
You think of this as, as I was
saying, the spunk, how people

892
00:44:33,250 --> 00:44:34,548
interact, all of that.

893
00:44:40,370 --> 00:44:46,640
So in your macro class, you
either saw this graph and

894
00:44:46,640 --> 00:44:50,270
commented on it, or you may also
seen a graph where you

895
00:44:50,270 --> 00:44:53,580
have growth on the left hand
side and level of education.

896
00:44:53,580 --> 00:44:55,260
You do see a strong
relationship

897
00:44:55,260 --> 00:44:57,040
between growth and level.

898
00:44:57,040 --> 00:45:01,900
These countries which had more
education in 1965 have grown

899
00:45:01,900 --> 00:45:05,340
faster between '65 and 1990.

900
00:45:05,340 --> 00:45:08,690
But what Easterly objects to
that is that yes, of course.

901
00:45:08,690 --> 00:45:11,320
Because if you anticipate
growth, that's how you're

902
00:45:11,320 --> 00:45:12,850
going to decide to
get education.

903
00:45:12,850 --> 00:45:15,540
Because education becomes
more worthwhile.

904
00:45:15,540 --> 00:45:20,180
So that does not tell me that
education is worth anything.

905
00:45:20,180 --> 00:45:24,510
So that's where we are
with the macro data.

906
00:45:24,510 --> 00:45:29,110
And my bottom line is not that
your macro class is wrong or

907
00:45:29,110 --> 00:45:31,130
that your macro class
is right.

908
00:45:31,130 --> 00:45:33,770
My bottom line is we just don't
know by just looking at

909
00:45:33,770 --> 00:45:34,910
these data.

910
00:45:34,910 --> 00:45:35,880
We don't have enough
data points.

911
00:45:35,880 --> 00:45:37,730
And anything could
have happened.

912
00:45:37,730 --> 00:45:40,340
In the countries which were
about to have wars may have

913
00:45:40,340 --> 00:45:43,520
invested more in education
perhaps as an attempt to not

914
00:45:43,520 --> 00:45:44,790
have those wars.

915
00:45:44,790 --> 00:45:46,160
Who knows.

916
00:45:46,160 --> 00:45:48,500
So in order to answer the
question of what's the

917
00:45:48,500 --> 00:45:57,140
benefits of education, we need
to look at specific examples.

918
00:45:57,140 --> 00:45:59,860
So ideally, I would have liked
to look, for you, at the

919
00:45:59,860 --> 00:46:02,140
example of Turkey, because we
just saw it in the movie.

920
00:46:02,140 --> 00:46:04,190
But I don't have it.

921
00:46:04,190 --> 00:46:07,280
So we'll be looking at the
example of Indonesia.

922
00:46:07,280 --> 00:46:11,500
So if we are looking at the
effect of supply-driven

923
00:46:11,500 --> 00:46:14,460
expansion, there are some
arguments where one could see

924
00:46:14,460 --> 00:46:15,770
that it's not going to work.

925
00:46:15,770 --> 00:46:18,580
And these are arguments that
Easterly is making.

926
00:46:18,580 --> 00:46:21,180
And we kind of all saw
them in the movie.

927
00:46:21,180 --> 00:46:23,850
There was the point about
the teacher quality.

928
00:46:23,850 --> 00:46:26,500
If the teachers don't care
because they've just been spar

929
00:46:26,500 --> 00:46:29,540
shooted by a central government
to the community

930
00:46:29,540 --> 00:46:34,610
exactly as you were saying, then
the level of education is

931
00:46:34,610 --> 00:46:36,840
not going to be very good.

932
00:46:36,840 --> 00:46:39,940
If the parents don't care and
just do it because they have

933
00:46:39,940 --> 00:46:42,630
to do it, then they are not
going to put pressure on the

934
00:46:42,630 --> 00:46:44,790
teachers to actually deliver.

935
00:46:44,790 --> 00:46:48,930
And they're not going to put
pressure on the children to

936
00:46:48,930 --> 00:46:50,660
actually learn.

937
00:46:50,660 --> 00:46:54,050
So the | case is the point that
you were making earlier,

938
00:46:54,050 --> 00:46:56,840
where the children are all alone
in boarding school, and

939
00:46:56,840 --> 00:46:58,640
nobody's looking after
what they do.

940
00:46:58,640 --> 00:47:01,460
And potentially, they learn
nothing, or they might learn

941
00:47:01,460 --> 00:47:04,320
to do all sorts of bad stuff.

942
00:47:04,320 --> 00:47:08,110
So if parents do not think that
schools are delivering

943
00:47:08,110 --> 00:47:10,470
anything useful, then they
won't pay attention.

944
00:47:10,470 --> 00:47:12,340
And finally, children,
if they also don't

945
00:47:12,340 --> 00:47:13,760
care, won't pay attention.

946
00:47:13,760 --> 00:47:15,490
So these are all theoretical
arguments.

947
00:47:15,490 --> 00:47:17,510
I'm not saying they
are correct.

948
00:47:17,510 --> 00:47:18,910
But these are the types
of argument

949
00:47:18,910 --> 00:47:20,820
that Easterly is making.

950
00:47:20,820 --> 00:47:23,340
So how would we know whether
or not there is

951
00:47:23,340 --> 00:47:25,130
a benefit of education?

952
00:47:25,130 --> 00:47:27,870
So as I was saying, I don't
you want to interpret the

953
00:47:27,870 --> 00:47:28,880
cross-country evidence.

954
00:47:28,880 --> 00:47:31,040
I think it's very difficult
to interpret.

955
00:47:31,040 --> 00:47:34,180
So I want to focus on one
country, and this one company

956
00:47:34,180 --> 00:47:39,840
that did almost the same
thing that Turkey did.

957
00:47:39,840 --> 00:47:44,040
And fortunately for us, they did
not a few years ago, but

958
00:47:44,040 --> 00:47:45,370
many years ago.

959
00:47:45,370 --> 00:47:48,600
So now we can look at those
kids as they are

960
00:47:48,600 --> 00:47:49,630
in the labor market.

961
00:47:49,630 --> 00:47:53,640
And we can see whether it was
beneficial for them to be sent

962
00:47:53,640 --> 00:47:55,120
to these schools.

963
00:47:55,120 --> 00:47:57,290
So that country is Indonesia.

964
00:47:57,290 --> 00:47:59,880
Indonesia is an oil-producing
country.

965
00:47:59,880 --> 00:48:03,560
So when there was a big oil
shock in 1970, starting in

966
00:48:03,560 --> 00:48:07,230
1973, for Indonesia, it was
actually good news.

967
00:48:07,230 --> 00:48:10,470
Because there were producing
oil, so they became richer.

968
00:48:10,470 --> 00:48:13,960
And they decided that they were
going to use this oil

969
00:48:13,960 --> 00:48:16,900
money to build a
lot of schools.

970
00:48:16,900 --> 00:48:19,210
Basically, all the oil money the
first few years went into

971
00:48:19,210 --> 00:48:21,300
building tons of schools.

972
00:48:21,300 --> 00:48:24,400
Tons means they build almost
62,000 schools

973
00:48:24,400 --> 00:48:26,110
all over the country.

974
00:48:26,110 --> 00:48:30,580
But particularly in places
which had a low education

975
00:48:30,580 --> 00:48:31,600
enrollment.

976
00:48:31,600 --> 00:48:34,230
So it's your ultimate
top down.

977
00:48:34,230 --> 00:48:36,330
Furthermore, what is interesting
in relationship

978
00:48:36,330 --> 00:48:39,310
with Turkey is that they had
exactly the same objective,

979
00:48:39,310 --> 00:48:43,300
which is they wanted the kids
to learn Bahasa Indonesia.

980
00:48:43,300 --> 00:48:46,790
That's the language for the
country, even people in the

981
00:48:46,790 --> 00:48:48,710
outlying island and
stuff like that.

982
00:48:48,710 --> 00:48:51,930
And they wanted everyone to
learn the state ideology,

983
00:48:51,930 --> 00:48:52,860
which was the Pancasila.

984
00:48:52,860 --> 00:48:57,160
It's kind of halfway between
an ideology and a religion

985
00:48:57,160 --> 00:48:57,780
that [INAUDIBLE]

986
00:48:57,780 --> 00:48:59,280
was keen on.

987
00:48:59,280 --> 00:49:01,600
So it was entirely pushed
by public effort.

988
00:49:04,640 --> 00:49:07,770
If it was going to fail, then
this was going to fail.

989
00:49:07,770 --> 00:49:09,724
And what do we see?

990
00:49:09,724 --> 00:49:14,395
So these graphs are the number
of schools that were built in

991
00:49:14,395 --> 00:49:16,030
the region.

992
00:49:16,030 --> 00:49:18,690
And this is the difference
between the education of the

993
00:49:18,690 --> 00:49:22,350
young cohort who benefited from
the school, and education

994
00:49:22,350 --> 00:49:24,880
of the old guys who
didn't benefit.

995
00:49:24,880 --> 00:49:28,290
So you see that in general, it's
always positive, because

996
00:49:28,290 --> 00:49:30,450
education went up over
time between the

997
00:49:30,450 --> 00:49:31,280
younger and the old.

998
00:49:31,280 --> 00:49:32,670
That makes sense.

999
00:49:32,670 --> 00:49:36,810
But it is also increasing in
slope, that is, places which

1000
00:49:36,810 --> 00:49:40,040
got more schools got more
years of education.

1001
00:49:40,040 --> 00:49:42,415
Maybe that's not surprising,
because that's almost a

1002
00:49:42,415 --> 00:49:44,680
mechanical result of
putting schools.

1003
00:49:44,680 --> 00:49:47,270
But this graph is an
interesting one.

1004
00:49:47,270 --> 00:49:52,060
I'm now looking at the wages of
people in 1995, difference

1005
00:49:52,060 --> 00:49:54,990
between the wages of the
young, minus the

1006
00:49:54,990 --> 00:49:56,240
wages of the old.

1007
00:49:58,830 --> 00:50:02,450
Now it's all negative, because
old people have more

1008
00:50:02,450 --> 00:50:05,030
experience and tend to
make more money.

1009
00:50:05,030 --> 00:50:07,960
But what is interesting is
not the negative thing.

1010
00:50:07,960 --> 00:50:09,230
It's the slope again.

1011
00:50:09,230 --> 00:50:11,690
The slope is again positive.

1012
00:50:11,690 --> 00:50:15,790
So it is saying that compared
to the old guys, the young

1013
00:50:15,790 --> 00:50:20,576
people benefit more in places
which build more schools.

1014
00:50:20,576 --> 00:50:23,500
And it's very difficult to think
of a story why would

1015
00:50:23,500 --> 00:50:25,675
this be the case,
except that the

1016
00:50:25,675 --> 00:50:27,920
benefit is from the education.

1017
00:50:27,920 --> 00:50:32,410
So it seems to be the case that
parachuting more schools

1018
00:50:32,410 --> 00:50:34,230
to communities increase
the years of

1019
00:50:34,230 --> 00:50:37,320
education, increase wages.

1020
00:50:37,320 --> 00:50:40,740
And that seems to imply that
education increases wages.

1021
00:50:40,740 --> 00:50:45,150
And in fact, if you put two
and two together, you find

1022
00:50:45,150 --> 00:50:50,420
that the effect of education
on wages is about 8%.

1023
00:50:50,420 --> 00:50:53,460
You can use similar experiments
to look at the

1024
00:50:53,460 --> 00:50:56,180
non-monetary effect
of education.

1025
00:50:56,180 --> 00:51:00,490
So Taiwan around the same time,
little bit before, also

1026
00:51:00,490 --> 00:51:03,480
did a top down drive to
increase education.

1027
00:51:03,480 --> 00:51:09,380
What they did is compulsory
education.

1028
00:51:09,380 --> 00:51:13,000
And what you find in 1968, and
what you'll find is compulsory

1029
00:51:13,000 --> 00:51:16,420
education in Taiwan led to
an increase of education.

1030
00:51:16,420 --> 00:51:20,290
That's not surprising but also
a reduction in infant

1031
00:51:20,290 --> 00:51:22,860
mortality in places
where education

1032
00:51:22,860 --> 00:51:24,790
increased more as a result.

1033
00:51:24,790 --> 00:51:28,550
So again, these are the
non-monetary benefits.

1034
00:51:28,550 --> 00:51:31,140
Nigeria did the same thing
as Indonesia for the

1035
00:51:31,140 --> 00:51:32,680
same type of reasons.

1036
00:51:32,680 --> 00:51:34,800
They used their oil money
to build schools.

1037
00:51:34,800 --> 00:51:36,590
Again, they built more
schools in some

1038
00:51:36,590 --> 00:51:38,200
regions than some others.

1039
00:51:38,200 --> 00:51:42,920
And again you can compare the
changes in infant mortality,

1040
00:51:42,920 --> 00:51:46,040
and infertility, and in wages
in places where they built

1041
00:51:46,040 --> 00:51:47,330
more schools and
in places where

1042
00:51:47,330 --> 00:51:48,670
they built fewer schools.

1043
00:51:48,670 --> 00:51:51,630
And the more schools they
built, the higher the

1044
00:51:51,630 --> 00:51:53,610
education, the higher the
wages, the lower the

1045
00:51:53,610 --> 00:51:56,210
infertilities, the lower
the infant mortalities.

1046
00:51:56,210 --> 00:52:02,200
So the bottom line, when we do
look at specific top down

1047
00:52:02,200 --> 00:52:05,800
policies is that they actually
are useful, that it seems to

1048
00:52:05,800 --> 00:52:09,080
be that there is a returns to
education, corresponding to

1049
00:52:09,080 --> 00:52:12,850
about 8% increase in wages for
every extra year that you

1050
00:52:12,850 --> 00:52:15,140
spend in school.

1051
00:52:15,140 --> 00:52:20,530
So when we look at this thing in
detail and we answer these

1052
00:52:20,530 --> 00:52:23,225
questions, we see yes, there
is a benefit of education.

1053
00:52:23,225 --> 00:52:26,980
What we are going to do next
is to say, well, is the

1054
00:52:26,980 --> 00:52:29,200
benefit as high as
it could be?

1055
00:52:29,200 --> 00:52:31,010
And that's where we are going
to see the limits of these

1056
00:52:31,010 --> 00:52:34,480
kinds of things, having to do
with the quality of education,

1057
00:52:34,480 --> 00:52:36,370
the motivation of the teachers,
the motivation of

1058
00:52:36,370 --> 00:52:39,230
the parents, et cetera, which
we'll do next time.