1 University of Minnesota and the World Bank. I thank the following people for comments, discussions,

This paper reviews recent research on the determinants of educational outcomes, and the impact of those outcomes on other socioeconomic phenomena. It addresses three questions: 1) What school policies are most cost-effective in producing students with particular cognitive skills, such as literacy and numeracy? 2) What is the relationship between schooling, particularly cognitive skills acquired in school, and labor productivity? 3) What impact does schooling, especially cognitive skills, have on other socioeconomic outcomes? While recent research has made some progress, these are difficult questions and much more work is needed. The paper provides suggestions for future research on these questions.

Paul Glewwe, Hanan G. Jacoby, An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition, The Review of Economics and Statistics, Vol. 77, No. 1 (Feb., 1995), pp. 156-169

Child sponsorship is a leading form of direct aid from wealthy country households to children in developing countries. Over 9 million children are supported through international sponsorship organizations. Using data from six countries, we estimate impacts on several outcomes from sponsorship through Compassion International, a leading child sponsorship organization. To identify program effects, we utilize an age-eligibility rule implemented when programs began in new villages. We find large, statistically significant impacts on years of schooling; primary, secondary, and tertiary school completion; and the probability and quality of employment. Early evidence suggests that these impacts are due, in part, to increases in children’s aspirations.