Sách Education, income distribution and growth by Corbacho, Ana (2001)

Education, income distribution and growth



The dissertation studies the role of education in economic development for the case of Argentina. The first chapter reports returns to education in the Metropolitan Region of Buenos Aires during 1985-1997. In 1991, several important macroeconomic reforms were enacted. Previous to these reforms, returns at all levels of schooling followed similar trends. Since 1992, however, returns have risen particularly at the higher education level. Between 1974 and 1997 education and income inequality have increased in Argentina. While children from a low-income family stop their schooling at the elementary level, wealthier students make it all the way to the university, enjoying the highest returns. The second chapter quantifies the impact of parents' education, family income, gender and other factors on educational achievement. Income transfers would be effective in promoting attainment. However, these transfers would have a different impact depending on family background. While the distribution of education of disadvantaged children would shift towards the high school level, the distribution of education of wealthier students would shift towards the university level. The successful educational experience of East Asia has encouraged policy-makers to recommend the re-allocation of public education expenditures towards the lower grades in Latin America, in order to reduce inequality and promote growth. The last chapter of the dissertation rigorously examines whether spending more on basic education is in fact a win-win strategy. Inequality declines but, if the government faces a budget constraint, resources are diverted from higher education. Eventually, overall income and growth may fall. The model is calibrated for three countries in Latin America: Argentina, Mexico and Honduras. While the recommended policy would allow Honduras to increase welfare in all dimensions, Mexico would be able to reduce inequality only at the expense of a lower rate of technological progress and a reduced level of aggregate income. Argentina would not encounter a trade-off between inequality and growth, but would encounter a trade-off between inequality and income.
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[TH]Format:[/TH]
[TD]Dissertation[/TD]
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[TH]Author(s):[/TH]
[TD]Corbacho, Ana[/TD]
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[TH]Published:[/TH]
[TD]2001[/TD]
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[TH]Language:[/TH]
[TD]English[/TD]
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