Examining social and economic impacts of educational investment and participation in developing countries : the educational impacts model (EIM) approach

The EIM is a simulation model which demonstrates the long-term, intersectoral effects of education, focusing primarily on impacts of educational investments on population growth and economic productivity. It is a general model based on empirical data from 80 countries. This report describes how the EIM was developed and provides detailed descriptions of its four component submodels: (1) educational participation; (2) demographics; (3) labor force participation; and (4) economic productivity. A final section illustrates the model using data from Pakistan. The report concludes that education is the most profitable form of social investment available and is fully competitive, in the long run, with traditional economic investment. Of particular importance is the impact of the education of women on lowering fertility, infant mortality, and population growth rates. The report notes that the EIM, along with the entire data set used to generate its equations, is available on diskette.