Define the costs of non-investment in education in Albania
Public Finance
Starting Date
Ending Date
Donor agency
Lead Partner
EuroPartners Development
Detailed description of the project

 The overall objective of the assignment is to provide an estimate of the overall costs of non-investment in education in Albania, by addressing not only financial gaps and constraints but also related factors, such as high early leaving school rates, poor quality learning performance and weak contribution in building human and other factor conditions in the country. As such, it will attempt to provide the evidence that higher investment levels in education (understood as increasing the education budget to 5% of the GDP) result in lower early leaving school rates and higher learning outcomes, leading towards a development of human capital in the country. This evidence will be costed in financial terms in medium and long-term (e.g. 5 to 10 years).

Type of services provided

Desk review of Similar studies conducted for identifying costs for non-investment in education; Education investments (expressed as percentage of GDP and share of state budget); Early leaving school rates, rates of out-of-school children, PISA results 2012 in Albania, the region and OECD countries and National Assessment of children outcomes 2015;
• Disparity analysis (identifying socio-economic groups over-represented among early leavers and out of school);

• Benefit incidence analysis (based on disparities in terms of education attainment and public unit costs of the different levels of education, estimating what are the differences across socio-economic groups in terms of consumption of public education resources).

• Microeconomic analysis, aggregating the estimated productivity deficits of individuals not expected to complete compulsory education. Based on wage estimates and early leaving rates collected as well as out-of-school children (OOSC) rates calculated by the UNESCO Institute of Statistics, the study provided an estimate of Albania’s GDP expansion within a decade, provided all of today’s OOSC complete compulsory education before they join the workforce.

• Macroeconomic assessment based on cross-country regressions from available datasets that estimate the relationship between national education attainment and GDP per capita. Enrolment/completion rates and GDP per capita in EU countries and neighbouring countries will be gathered and compared with Albania in order to make a comparative analysis of Albania versus international and regional benchmarks.

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