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Educational expansion and income distribution. A Micro-Simulation for Ceará

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Author Info

  • Francisco H. G. Ferreira

    (Department of Economics PUC-Rio)

  • Phillippe George Leite

    (Department of Economics PUC-Rio)

Abstract

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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Bibliographic Info

Paper provided by Department of Economics PUC-Rio (Brazil) in its series Textos para discussão with number 456.

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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

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Keywords: education; poverty; inequality;

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Cited by:
  1. 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.
  2. Marcelo de Paiva Abreu, 2003. "The political economy of economic integration in the Americas: Latin American interests," Textos para discussão 468, Department of Economics PUC-Rio (Brazil).
  3. Mariana Marchionni & Leonardo Gasparini, 2002. "El Impacto Distributivo de los Cambios en las Decisiones de Fertilidad," Department of Economics, Working Papers 044, Departamento de Economía, Facultad de Ciencias Económicas, Universidad Nacional de La Plata.

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