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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
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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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References

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  1. François Bourguignon & Francisco H.G. Ferreira & Phillipe G. Leite, 2002. "Beyond Oaxaca-Blinder: accounting for differences in household income distributions across countries," Textos para discussão 452, Department of Economics PUC-Rio (Brazil).
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Citations

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Cited by:
  1. Cunningham, Wendy & Jacobsen, Joyce P., 2008. "Earnings inequality within and across gender, racial, and ethnic groups in four Latin American Countries," Policy Research Working Paper Series 4591, The World Bank.
  2. 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.
  3. Mariana Marchionni & Leonardo Gasparini, 2007. "Tracing out the effects of demographic changes on the income distribution," Journal of Economic Inequality, Springer, vol. 5(1), pages 97-114, April.
  4. Ana Luiza Neves de Holanda Barbosa & Eduardo P. S. Fiuza & Marcel Scarth & Seki Asano, 2003. "Distributional Effects of Optimal Commodity Taxes With Minimum Income Programs: Micro-Simulations for Brazil," Anais do XXXI Encontro Nacional de Economia [Proceedings of the 31th Brazilian Economics Meeting] f24, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  5. 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).
  6. Bussolo, Maurizio & De Hoyos, Rafael E. & Medvedev, Denis & van der Mensbrugghe, Dominique, 2008. "Global Growth and Distribution: Are China and India Reshaping the World?," Working Papers RP2008/29, World Institute for Development Economic Research (UNU-WIDER).
  7. Pedro Carneiro & Sokbae 'Simon' Lee, 2005. "Ability, sorting and wage inequality," CeMMAP working papers CWP16/05, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
  8. Claudia Gutierrez, 2008. "Analysis of Poverty and Inequality in Bolivia,1999-2005: A Microsimulation Approach," Development Research Working Paper Series 01/2008, Institute for Advanced Development Studies.
  9. Michael Grimm, 2002. "The medium and long term effects of an expansion of education on poverty in Côte d'Ivoire. A dynamic microsimulation study," Working Papers DT/2002/12, DIAL (Développement, Institutions & Analyses de Long terme).
  10. Michael Grimm, 2004. "The medium and long term effects of an expansion of education on poverty in Côte d<92>Ivoire A dynamic microsimulation study," HEW 0405002, EconWPA.
  11. 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.
  12. Bussolo, Maurizio & De Hoyos, Rafael & Medvedev, Denis, 2009. "Global income distribution and poverty in the absence of agricultural distortions," Policy Research Working Paper Series 4849, The World Bank.

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