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On the emergence of public education in land-rich economies

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  • Galiani, Sebastian
  • Heymann, Daniel
  • Dabús, Carlos
  • Tohmé, Fernando

Abstract

We analyze the emergence of large-scale education systems by modeling the incentives that the economic elite could have (collectively) to accept taxation destined to finance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by high-income groups. Our model seems capable to account for salient features of the development of Latin America in the 19th century, where, in particular, land-rich countries such as Argentina established an extensive public education system and developed a sophisticated service sector before starting significant manufacturing activities.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 86 (2008)
Issue (Month): 2 (June)
Pages: 434-446

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Handle: RePEc:eee:deveco:v:86:y:2008:i:2:p:434-446

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Web page: http://www.elsevier.com/locate/devec

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  1. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
  2. Bourguignon, F. & Verdier, T., 1999. "Is Financial Openness bad for Education? A Political Economy Perspective on Development," DELTA Working Papers 1999-20, DELTA (Ecole normale supérieure).
  3. Oded Galor & Joseph Zeira, 2013. "Income Distribution and Macroeconomics," Working Papers 2013-12, Brown University, Department of Economics.
  4. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," NBER Working Papers 10568, National Bureau of Economic Research, Inc.
  5. Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "Land Inequality and the Emergence of Human Capital Promoting Institutions," Development and Comp Systems 0502018, EconWPA.
  6. Oded Galor & Omer Moav, 2006. "Das Human-Kapital: A Theory of the Demise of the Class Structure," Review of Economic Studies, Oxford University Press, vol. 73(1), pages 85-117.
  7. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
  8. Benabou, Roland, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Wiley Blackwell, vol. 63(2), pages 237-64, April.
  9. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, vol. 84(2), pages 755-776, November.
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Cited by:
  1. Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," DEGIT Conference Papers c016_041, DEGIT, Dynamics, Economic Growth, and International Trade.
  2. Oded Galor, 2011. "Inequality, Human Capital Formation and the Process of Development," NBER Working Papers 17058, National Bureau of Economic Research, Inc.
  3. Kim, Se-Um, 2008. "The Technological Origins of the High School Movement," MPRA Paper 12087, University Library of Munich, Germany.
  4. Thampanishvong Kannika, 2012. "Provision of Public Goods with the Presence of Inter-Class Conflicts," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-29, April.
  5. Campante, Filipe R. & Chor, Davin, 2008. "Schooling and Political Participation in a Neoclassical Framework: Theory and Evidence," Working Paper Series rwp08-043, Harvard University, John F. Kennedy School of Government.
  6. Mina Baliamoune, 2009. "Elites, Education and Reforms," ICER Working Papers 18-2009, ICER - International Centre for Economic Research.
  7. International Monetary Fund, 2010. "On the Distributive Effects of Terms of Trade Shocks: The Role of Non-tradable Goods," IMF Working Papers 10/241, International Monetary Fund.
  8. Davin Chor & Filipe R. Campante, 2008. "Schooling and Political Participation Revisited," Macroeconomics Working Papers 22072, East Asian Bureau of Economic Research.
  9. Galiani, Sebastian & Torrens, Gustavo, 2014. "Autocracy, democracy and trade policy," Journal of International Economics, Elsevier, vol. 93(1), pages 173-193.
  10. Sebastian Galiani & Norman Schofield, 2010. "Factor Endowments, Democracy and Trade Policy Divergence," DEGIT Conference Papers c015_027, DEGIT, Dynamics, Economic Growth, and International Trade.
  11. Behrman, Jere R., 2010. "Investment in Education Inputs and Incentives," Handbook of Development Economics, Elsevier.

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