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On the emergence of public education in land-rich economies

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  • Galiani, Sebastian
  • Heymann, Daniel
  • Dabús, Carlos
  • Tohmé, Fernando

Abstract

We analyze the emergence of large-scale education systems by modeling the incentives that the economic elite could have (collectively) to accept taxation destined to finance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by high-income 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 significant manufacturing activities.

Suggested Citation

  • Galiani, Sebastian & Heymann, Daniel & Dabús, Carlos & Tohmé, Fernando, 2008. "On the emergence of public education in land-rich economies," Journal of Development Economics, Elsevier, vol. 86(2), pages 434-446, June.
  • Handle: RePEc:eee:deveco:v:86:y:2008:i:2:p:434-446
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    References listed on IDEAS

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    1. Edward L. Glaeser & Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer, 2004. "Do Institutions Cause Growth?," Journal of Economic Growth, Springer, vol. 9(3), pages 271-303, September.
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    5. Easterly, William, 2007. "Inequality does cause underdevelopment: Insights from a new instrument," Journal of Development Economics, Elsevier, pages 755-776.
    6. Oded Galor & Omer Moav, 2000. "Das Human Kapital," Working Papers 2000-17, Brown University, Department of Economics.
    7. Roland Bénabou, 1996. "Equity and Efficiency in Human Capital Investment: The Local Connection," Review of Economic Studies, Oxford University Press, vol. 63(2), pages 237-264.
    8. Oded Galor & Omer Moav, 2006. "Das Human-Kapital: A Theory of the Demise of the Class Structure," Review of Economic Studies, Oxford University Press, vol. 73(1), pages 85-117.
    9. Kenneth L. Sokoloff & Stanley L. Engerman, 2000. "Institutions, Factor Endowments, and Paths of Development in the New World," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 217-232, Summer.
    10. Oded Galor & Omer Moav & Dietrich Vollrath, 2005. "Land Inequality and the Emergence of Human Capital Promoting Institutions," Development and Comp Systems 0502018, EconWPA.
    11. Acemoglu, Daron & Johnson, Simon & Robinson, James A., 2005. "Institutions as a Fundamental Cause of Long-Run Growth," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 6, pages 385-472 Elsevier.
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    Cited by:

    1. Sebastian Galiani & Norman Schofield & Gustavo Torrens, 2014. "Factor Endowments, Democracy, and Trade Policy Divergence," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 16(1), pages 119-156, February.
    2. Oded, Galor, 2011. "Inequality, Human Capital Formation, and the Process of Development," Handbook of the Economics of Education, Elsevier.
    3. Davin Chor & Filipe R. Campante, 2008. "Schooling and Political Participation Revisited," Macroeconomics Working Papers 22072, East Asian Bureau of Economic Research.
    4. Campante, Filipe R. & Chor, Davin, 2008. "Schooling and Political Participation in a Neoclassical Framework: Theory and Evidence," Working Paper Series rwp08-043, Harvard University, John F. Kennedy School of Government.
    5. Anders Akerman & Anna Larsson & Alireza Naghavi, 2011. "Autocracies and Development in a Global Economy: A Tale of Two Elites," DEGIT Conference Papers c016_041, DEGIT, Dynamics, Economic Growth, and International Trade.
    6. Mina Baliamoune, 2009. "Elites, Education and Reforms," ICER Working Papers 18-2009, ICER - International Centre for Economic Research.
    7. Behrman, Jere R., 2010. "Investment in Education Inputs and Incentives," Handbook of Development Economics, Elsevier.
    8. International Monetary Fund, 2010. "On the Distributive Effects of Terms of Trade Shocks; The Role of Non-tradable Goods," IMF Working Papers 10/241, International Monetary Fund.
    9. Kim, Se-Um, 2008. "The Technological Origins of the High School Movement," MPRA Paper 12087, University Library of Munich, Germany.
    10. Galiani, Sebastian & Torrens, Gustavo, 2014. "Autocracy, democracy and trade policy," Journal of International Economics, Elsevier, pages 173-193.
    11. Thampanishvong Kannika, 2012. "Provision of Public Goods with the Presence of Inter-Class Conflicts," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(1), pages 1-29, April.
    12. Dabús, Carlos & Tohmé, Fernando & Caraballo, M. Ángeles, 2016. "A middle income trap in a small open economy: Modeling the Argentinean case," Economic Modelling, Elsevier, vol. 53(C), pages 436-444.

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