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Educational outcomes and socioeconomic status: A decomposition analysis for middle-income countries

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Abstract

This article analyzes the factors that explain the gap in educational outcomes between the top and bottom quartile of students in different countries, according to their socioeconomic status. To do so, it uses PISA microdata for 10 middle-income and 2 high-income countries, and applies the Oaxaca-Blinder decomposition method. Its results show that students’ individual variables only explain differences in high-income countries; meanwhile, school and teacher quality, and better practices, matter even in different institutional settings. From a policy perspective, this evidence supports actions to improve school and teacher quality in order to reduce cross-country differences and differences between students at the top and bottom of socioeconomic distribution.

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Notes

  1. The OLS estimation of educational production functions could be affected by several potential econometric caveats including multicollinearity or nonlinearities. Detailed results of the estimates and diagnostic tests are available from us upon request.

  2. Different breakpoints have been considered to define the groups. In particular, decompositions for differences between the fourth and the third quartiles, between the fourth and the second quartiles, between the fourth and the first quartiles, between the third and the second quartiles, between the third and the first quartiles, and between the second and the first quartiles have also been considered. Results, available from the authors on request, show two interesting facts: first, that greater differences in educational outcomes are associated with differences between the fourth and the first quartiles of income in all countries, and second, that the relative contribution of personal, school, and individual characteristics to explain educational outcomes are similar across the ESCS distribution.

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Correspondence to Sandra Nieto.

Additional information

This article builds on Nieto and Ramos (2013). We are grateful to the members of the EFA Global Monitoring Report team and the editors and referees of Prospects for their constructive and helpful comments and suggestions. We especially acknowledge Manos Antoninis, Kwame Akyeampong, and Pauline Rose.

Appendix

Appendix

See Table 2.

Table 2 Variable definition

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Nieto, S., Ramos, R. Educational outcomes and socioeconomic status: A decomposition analysis for middle-income countries. Prospects 45, 325–343 (2015). https://doi.org/10.1007/s11125-015-9357-y

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