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The Human Development Trap in Mexico

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  • Mayer-Foulkes, David

Abstract

Summary A dynamic poverty trap model describing long-term human development is defined in the context of endogenous technological change. Increasing returns are not required: market failures and indivisibilities imply a human capital undersupply and hence above-equilibrium returns. Evidence for this trap is provided for Mexico. High returns to education and early child development, untapped by about 75% of the population, imply an undersupply of human capital. A double-peaked schooling distribution for male and female spouses attests to multiple equilibria. One peak lies beyond complete higher secondary, the other below complete lower secondary schooling. Supporting early child development can help eliminate the trap.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 36 (2008)
Issue (Month): 5 (May)
Pages: 775-796

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Handle: RePEc:eee:wdevel:v:36:y:2008:i:5:p:775-796

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

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Citations

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Cited by:
  1. Golub, Alexander & Toman, Michael, 2014. "Climate change, industrial transformation, and"development traps"," Policy Research Working Paper Series 6951, The World Bank.
  2. Casabonne, Ursula & Kenny, Charles, 2012. "The Best Things in Life are (Nearly) Free: Technology, Knowledge, and Global Health," World Development, Elsevier, vol. 40(1), pages 21-35.
  3. David Mayer-Foulkes, 2012. "FDI, Polarized Globalization, and the Current Crisis," DEGIT Conference Papers c017_052, DEGIT, Dynamics, Economic Growth, and International Trade.
  4. Viviane Azevedo & César P. Bouillon, 2009. "Social Mobility in Latin America: A Review of Existing Evidence," IDB Publications 6773, Inter-American Development Bank.
  5. Stephen C. Smith & Sungil Kwak, 2011. "Multidimensional Poverty and Interlocking Poverty Traps: Framework and Application to Ethiopian Household Panel Data," Working Papers 2011-04, The George Washington University, Institute for International Economic Policy.
  6. David Mayer-Foulkes, 2011. "A Causal Panorama of Cross-Country Human Development," DEGIT Conference Papers c016_049, DEGIT, Dynamics, Economic Growth, and International Trade.
  7. Oded Galor & David Mayer-Foulkes, 2004. "Food for Thought: Basic Needs and Persistent Educational Inequality," GE, Growth, Math methods 0410002, EconWPA.

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