How much might human capital policies affect earnings inequalities and poverty?
AbstractEconomic inequality and poverty have persisted in Latin America despite important changes in political and policy regimes. This paper explores the relationship between various human capital programs aimed to reduced poverty and how improvements of those in poverty in the left tail of the earning income distribution are likely to reduce inequality. First it reviews some recent benefit/cost estimates for human capital intervention in LAC, suggesting some investments in which the returns appear quite high. Then it turns over to how much increases in schooling attainment targeted to the poor would reduce poverty and income inequality. This is illustrated empirically using the 2004 Chilean Social Protection Survey data. Alternative simulations suggest significant impacts of well targeted increases in schooling attainment on reducing poverty and inequality.
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Bibliographic InfoArticle provided by University of Chile, Department of Economics in its journal Estudios de Economia.
Volume (Year): 38 (2011)
Issue (Month): 1 Year 2011 (June)
Inequality; Poverty; Human capital.;
Find related papers by JEL classification:
- I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
- I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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