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Human Capital Policies: What they Can and Cannot Do for Productivity and Poverty Reduction in Latin America

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Author Info
Suzanne Duryea
Carmen Pagés-Serra ()

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Abstract

Raising labor productivity is recognized as a critical factor for increasing economic growth and reducing poverty levels in Latin America. Low levels of education continue to be singled out as the main obstacle to higher productivity in the region. We examine the scope for education to lift labor incomes above poverty levels in Latin America and find that in many countries education, by itself, has a positive, but limited, potential to increase wages above a minimum level. In general, the prospects are dim because progress in raising average schooling levels has been slow even under the best historical scenarios. We also examine whether the apparent failure of education can be explained by low wage returns to schooling, and poor underlying conditions. We find that investments in education continue to have important payoffs but poor underlying conditions explain the modest prospect for the role of education in the short run. This leads us to consider what additional policies should be pursued in order to ensure higher productivity for workers in the region.

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Paper provided by Inter-American Development Bank, Research Department in its series RES Working Papers with number 4297.

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Date of creation: Apr 2002
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Handle: RePEc:idb:wpaper:4297

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Card, David & Krueger Alan B, 1996. "School Resources and Student Outcomes: An Overview of the Literature and New Evidence from North and South Carolina," Journal of Economic Perspectives, American Economic Association, vol. 10(4), pages 31-50, Fall. [Downloadable!] (restricted)
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  2. Medina, Carlos & Nuñez, Jairo, 2005. "The Impact of Public and Private Job Training in Colombia," MPRA Paper 6931, University Library of Munich, Germany. [Downloadable!]
  3. Alan Krueger & Mikael Lindahl, 2000. "Education for Growth: Why and For Whom?," Working Papers 808, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  4. Robert E. Hall & Charles I. Jones, 1999. "Why Do Some Countries Produce So Much More Output per Worker than Others?," NBER Working Papers 6564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Kristen Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall. [Downloadable!] (restricted)
  6. Arturo Galindo, 2001. "Creditor Rights and the Credit Market: Where Do We Stand?," RES Working Papers 4259, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Miguel Székely, 2001. "The 1990s in Latin America: Another Decade of Persistent Inequality, but with Somewhat Lower Poverty," RES Working Papers 4271, Inter-American Development Bank, Research Department. [Downloadable!]
  8. Mark Bils & Peter J. Klenow, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December. [Downloadable!] (restricted)
  9. repec:fth:prinin:366 is not listed on IDEAS
  10. Behrman, Jere R & Birdsall, Nancy, 1983. "The Quality of Schooling: Quantity Alone is Misleading," American Economic Review, American Economic Association, vol. 73(5), pages 928-46, December. [Downloadable!] (restricted)
  11. Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank. [Downloadable!]
  12. Anne Case & Motohiro Yogo, 1999. "Does School Quality Matter? Returns to Education and the Characteristics of Schools in South Africa," Working Papers 219, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies.. [Downloadable!]
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  1. Carmen Pagés & Marco Stampini, 2007. "No Education, No Good Jobs? Evidence on the Relationship between Education and Labor Market Segmentation," IZA Discussion Papers 3187, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Suzanne Duryea & Olga Lucia Jaramillo & Carmen Pagés-Serra, 2003. "Latin American Labor Markets in the 1990s: Deciphering the Decade," RES Working Papers 4331, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Maurice Kugler, . "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," Borradores de Economia 370, Banco de la Republica de Colombia. [Downloadable!]
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  4. Maldonado, Jorge & Gonzalez-Vega, Claudio & Romero, Vivianne, 2003. "The Influence Of Microfinance On The Education Decisions Of Rural Households: Evidence From Bolivia," 2003 Annual meeting, July 27-30, Montreal, Canada 22067, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
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  5. Hernán Winkler, 2005. "Monitoring the Socio-Economic Conditions in Uruguay," Working Papers 0026, CEDLAS, Universidad Nacional de La Plata. [Downloadable!]
  6. Suzanne Duryea & Olga Lucia Jaramillo & Carmen Pagés-Serra, 2003. "Los mercados laborales latinoamericanos en los años 90: descifrar la década," RES Working Papers 4332, Inter-American Development Bank, Research Department. [Downloadable!]
  7. Carmen Pagés-Serra & Marco Stampini, 2007. "¿Sin formación no hay buenos empleos? Elementos de juicio sobre la relación entre la formación y la segmentación del mercado laboral," RES Working Papers 4562, Inter-American Development Bank, Research Department. [Downloadable!]
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