Land-Rich Economies, Education and Economic Development
AbstractWe analyze the emergence of large-scale education systems in a framework where growth is associated with changes in the con guration of the economy. We model the incentives that the economic elite could have (collectively) to accept taxation destined to nance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not necessarily arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by highincome groups. Our model seems capable to account for salient features of the development of Latin America in the 19th century, where, in particular, land-rich countries such as Argentina established an extensive public education system and developed a sophisticated service sector before starting signi cant manufacturing activities.
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Bibliographic InfoPaper provided by Universidad de San Andres, Departamento de Economia in its series Working Papers with number 85.
Length: 39 pages
Date of creation: Dec 2005
Date of revision: Dec 2005
land-rich economies; education; economic development;
Other versions of this item:
- Sebastian Galiani & Daniel Heymann, 2005. "Land-Rich Economies, Education and Economic Development," DEGIT Conference Papers c010_048, DEGIT, Dynamics, Economic Growth, and International Trade.
- Sebastian Galiani & Daniel Heymann & Carlos Dabus & Fernando Tohme, 2007. "Land-Rich Economies, Education and Economic Development," CEDLAS, Working Papers 0049, CEDLAS, Universidad Nacional de La Plata.
- N36 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Latin America; Caribbean
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
- I2 - Health, Education, and Welfare - - Education
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