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

Author

Listed:
  • 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.

Suggested Citation

  • Francisco H. G. Ferreira & Phillippe George Leite, 2002. "Educational expansion and income distribution. A Micro-Simulation for Ceará," Textos para discussão 456, Department of Economics PUC-Rio (Brazil).
    • Handle: RePEc:rio:texdis:456
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    File URL: http://www.econ.puc-rio.br/uploads/adm/trabalhos/files/td456.pdf
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    Citations

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    Cited by:

    1. 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.
    2. Ana Luiza N. H. Barbosa & Eduardo P. S. Fiuza & Marcel Scharth & Seki Asano, 2015. "Distributional Effects of Optimal Commodity Taxes Combined with Minimum Income Programs in Brazil," Discussion Papers 0125, Instituto de Pesquisa Econômica Aplicada - IPEA.
    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.
    4. 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).

    More about this item

    Keywords

    education; poverty; inequality;
    All these keywords.

    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

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