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Abstract

We propose a model that accounts for the feedback between access to educational services, human capital accumulation and long-run GDP growth. With this framework, it is possible to simultaneously assess the achievement of Millennium Development Goal (MDG) education targets in terms of their impact on aggregate income growth and poverty incidence. We simulate our model using Peruvian data and different planner preferences regarding access to distinct education cycles. Results reveal that to attain a significant impact on GDP growth and poverty reduction, Peru needs to extend the original set of MDG indicators to account for access to higher education levels besides primary.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/17487870902775743
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Bibliographic Info

Article provided by Taylor and Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 12 (2009)
Issue (Month): 1 ()
Pages: 57-73

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Handle: RePEc:taf:jpolrf:v:12:y:2009:i:1:p:57-73

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Related research

Keywords: Millennium Development Goals; education; human capital; GDP growth; poverty; Peru;

Other versions of this item:

Find related papers by JEL classification:

• I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
• I28 - Health, Education, and Welfare - - Education - - - Government Policy
• I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
• O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
• O21 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

References

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1. Gustavo Yamada & Juan Castro, 2007. "Poverty, inequality, and social policies in Peru: As poor as it gets," Working Papers 07-06, Departamento de Economía, Universidad del Pacífico, revised Feb 2007.
2. Juan Castro & Gustavo Yamada, 2006. "Evaluación de estrategias de desarrollo para alcanzar los Objetivos del Milenio en América Latina," Working Papers 06-11, Departamento de Economía, Universidad del Pacífico, revised Nov 2006.
3. Barro, Robert J & Lee, Jong-Wha, 2001. "International Data on Educational Attainment: Updates and Implications," Oxford Economic Papers, Oxford University Press, vol. 53(3), pages 541-63, July.
   
   • Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
   • Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment: Updates and Implications," CID Working Papers 42, Center for International Development at Harvard University.
4. Gustavo Yamada, 2006. "Retornos a la educación superior en el mercado laboral: ¿Vale la pena el esfuerzo?," Working Papers 06-13, Departamento de Economía, Universidad del Pacífico, revised Dec 2006.
5. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.

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