Educational expansion and income distribution. A Micro-Simulation for Ceará
AbstractDoes more education really mean less poverty and less inequality? How much less? What are the transmission mechanisms? This paper presents the results of a micro-simulation exercise for the Brazilian State of Ceará, which suggests that broad-based policies aimed at increasing educational attainment would have substantial impacts on poverty reduction, but muted effects on inequality. These results are highly dependent on assumptions about the behaviour of returns to education, both for the distribution of earnings and for the distribution of household income per capita. A large share of the poverty reducing effect of more education operates through greater incentives for labour force participation among the poor, and through reductions in fertility. Both of these effects function largely through decisions made by poor women.
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Bibliographic InfoPaper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 456.
Length: 29 pages
Date of creation: May 2002
Date of revision:
Publication status: Published as a book chapter in R. van der Hoven e A. Shorrocks (eds) Growth, inequality and poverty , New York: Oxford University Pres
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education; poverty; inequality;
Find related papers by JEL classification:
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
- D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
- I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-06-13 (All new papers)
- NEP-LAB-2002-06-13 (Labour Economics)
- NEP-LAM-2002-06-13 (Central & South America)
- NEP-LTV-2002-06-13 (Unemployment, Inequality & Poverty)
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- Marcelo de Paiva Abreu, 2003. "The political economy of economic integration in the Americas: Latin American interests," Textos para discussÃ£o 468, Department of Economics PUC-Rio (Brazil).
- Pedro Carneiro & Sokbae 'Simon' Lee, 2009.
"Estimating distributions of potential outcomes using local instrumental variables with an application to changes in college enrollment and wage inequality,"
CeMMAP working papers
CWP01/09, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Carneiro, Pedro & Lee, Sokbae, 2009. "Estimating distributions of potential outcomes using local instrumental variables with an application to changes in college enrollment and wage inequality," Journal of Econometrics, Elsevier, vol. 149(2), pages 191-208, April.
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