The "Education, Poverty and Economic Activity in Armenia" situation analysis report has been prepared by a team of independent consultants within the framework of the UNDP/Government of Armenia joint project on "Creation of Social Monitoring and Analysis System". The EPEAS (Education, Poverty and Economic Activity Survey) data served as a basis of this report. The findings, interpretations as well as views and conclusions expressed in the document are those of the authors and do not necessarily represent the views of UNDP as well as of the Government of Armenia.

Team of Consultants:

Mrs. Astghik Mirzakhanyan
PhD in Economics UNDP Project Coordinator and Editor of the Report

Mrs. Heghine Manasyan
Doctor of Economics Leader of the Team of National Consultants, UNDP Consultant on education and poverty

Mr. Yuri Suvaryan
Doctor of Economics, Professor UNDP Consultant on employment and poverty

Mr. Ruben Yeganyan
PhD in Economics UNDP Consultant on EPEAS sampling and social-demographic indicators

Mr. Nelson Shahnazaryan
PhD in Psychology UNDP Consultant on EPEAS questionnaire development and social-psychological indicators

Mrs. Nairuhi Jrbashyan
UNDP Consultant on databases and econometric analysis

Summary and conclusions

Introduction

Chapter 1. Education, Poverty and Economic Activity Survey (EPEAS)

SECTION 1. Background and methodology

1.1. Household survey
1.1.1. Household survey questionnaires
1.1.2. Household survey sampling
1.1.3. Particular aspects of the methodology used
1.2. Focus group surveys
1.3. Applicants survey

Chapter 2. Essential facts on education level and educational system

SECTION 2. Characteristics of the level of education

2.1. Level of education among respondents
2.2. Main characteristics of the level of education
2.2.1. Gender specifics
2.2.2. Urban-rural specifics 2.2.3. Present-absent specifics

SECTION 3. Enrolment of respondents in the educational system

3.1. Specifics of the educational system
3.1.1. Enrolment by level of education
3.1.2. Enrolment by additional studies
3.1.3. Enrolment by the legal status of education providers

Chapter 3. Education and poverty

SECTION 4. Level of education and poverty

4.1 Age related specifics of living standard and level of education
4.2 Gender aspects of level of education and poverty
4.3 Link between the education of the head of household and poverty
4.4 The impact of level of education on households' income generation

SECTION 5. Enrolment in the educational system and poverty

5.1 Representation in various level of educational system
5.2 Enrolment in different forms of educational services
5.3 Non-enrolment in the educational system and its causes

Chapter 4. Access to education

SECTION 6. Education costs and poverty

6.1 Education costs by levels of education and region
6.2 Composition of expenditures on education
6.3 Tuition and assistance to students

SECTION 7. Access to education and poverty

7.1 Access to education by level of education
7.2 Ensuring access to education

Chapter 5. Education Inequality

SECTION 8. Gini coefficient of education

8.1 Comments on methodology
8.2 Distribution of level of education by years of schooling

Chapter 6. Quality of education

SECTION 9. Education indicators

9.1 Usefulness of school education
9.2 Additional lessons for schoolchildren
9.3 Applicants' choice of specialisation and expectations regarding employment
9.4 Assessment of changes made to the school system
9.5 Knowledge of foreign languages and computer skills
9.6 Assessment of the relevance of education
9.7 The role of teachers in quality education
9.8 Study conditions at home

Chapter 7. Education and economic activity

SECTION 10. Economic activity, education and poverty

10.1 Main indicators of economic activity
10.2 Economic status and poverty
10.3 Age groups, economic activity and poverty
10.4 Education, economic status and poverty

SECTION 11. Education, economic activity and poverty problems among the youth

11.1 Economic status of the youth
11.2 Level of education, employment and unemployment among the youth
11.3 Level of education and specialities among the youth
11.4 Pedagogical speciality and its perspectives
11.5 Entrepreneurial activity of the youth
11.6 Problems of employment for the youth

Chapter 8. Level of education, employment and incomes

SECTION 12. Years of schooling and income generating employment

12.1 Links between public and private education and employment
12.2 Links between years of schooling, employment and income
12.3 Link between speciality, employment and income

SECTION 13. Education costs return

13.1 Income inequalities among the employed young people
13.2 Assessment of "the monetary value" of years of schooling
13.3 Total education costs return

Bibliography

The Republic of Armenia is one of the CIS countries, which has initiated the preparation of the Poverty Reduction Strategy Paper (PRSP) in 2000. The Interim PRSP (I-PRSP) was adopted by the Government of Armenia in March 2001, and in February 2002 the PRSP Steering Committee approved the Terms of Reference and Guidelines for the fully-fledged PRSP. In these official documents great importance is attached to the links between education, poverty and economic activity from the perspective of economic growth and poverty reduction.
For further study of this issue an education, poverty and economic activity survey (EPEAS) was conducted in 2001 within the framework of the Creation of a Social Monitoring and Analysis System project jointly implemented by the UNDP and the Government of Armenia.
The main objective of the EPEAS is to conduct an all-encompassing analysis aimed at harmonising and improving Education, Labour Market and Indicator Monitoring components of the PRSP, which will be useful to expert groups in determining the main directions for indicators, targets and policy in general.
The primary objective of the EPEAS is to identify the links between, on the one hand, poverty and one of the basic elements of public services, namely access to education, and on the other hand, education and one of the main means for overcoming poverty, namely economic activity.
The EPEAS is based on the sample household survey, focus-group discussions and survey of applicants for admission to universities, particularly the pedagogical institutions.
The EPEAS results were analysed according to poverty groups. For EPEAS purposes very poor are households, and their members, included in the system of family benefits and receiving family benefits from the state, poor are households, which have applied for family benefits, but did not collect enough points to be included, and those which have not applied considering that their inclusion is not probable, non-poor are households which consider themselves well-off, and consequently have not applied.