Does 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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Paper 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 Handle: RePEc:rio:texdis:456
Find related papers by JEL classification: C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution I31 - Health, Education, and Welfare - - Welfare and Poverty - - - General Welfare 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
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