Measuring the holes of the ship: Global cost estimations of internal inefficiency in primary education

Using UNESCO-UIS data, this paper estimates the costs of internal inefficiency caused by dropouts and repetitions in primary education. Multiple imputation method is found essential to accurately estimate the costs of internal inefficiency. Globally, 8.1% of total public expenditure for primary education was wasted in 2011, a 3.4 percentage-point decrease from 2002. However, during the same period, total value of wastage increased by two billion USD to 32.6 billion USD, five times higher than total aid for primary education towards developing countries. Sub-Saharan Africa remains as the region with significant needs for improvement in internal inefficiency.