The Human Development Trap in Mexico
Summary A dynamic poverty trap model describing long-term human development is defined in the context of endogenous technological change. Increasing returns are not required: market failures and indivisibilities imply a human capital undersupply and hence above-equilibrium returns. Evidence for this trap is provided for Mexico. High returns to education and early child development, untapped by about 75% of the population, imply an undersupply of human capital. A double-peaked schooling distribution for male and female spouses attests to multiple equilibria. One peak lies beyond complete higher secondary, the other below complete lower secondary schooling. Supporting early child development can help eliminate the trap.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Arora, Suchit, 2001. "Health, Human Productivity, And Long-Term Economic Growth," The Journal of Economic History, Cambridge University Press, vol. 61(03), pages 699-749, September.
- Jeffrey Sachs & Andrew Warner, 1995.
"Economic Reform and the Progress of Global Integration,"
Harvard Institute of Economic Research Working Papers
1733, Harvard - Institute of Economic Research.
- Jeffrey D. Sachs & Andrew Warner, 1995. "Economic Reform and the Process of Global Integration," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 26(1, 25th A), pages 1-118.
- Fogel, Robert W., 1993.
"Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy,"
Nobel Prize in Economics documents
1993-1, Nobel Prize Committee.
- Fogel, Robert W, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," American Economic Review, American Economic Association, vol. 84(3), pages 369-95, June.
- Robert W. Fogel, 1994. "Economic Growth, Population Theory, and Physiology: The Bearing of Long-Term Processes on the Making of Economic Policy," NBER Working Papers 4638, National Bureau of Economic Research, Inc.
- Harry Patrinos & Chris Sakellariou, 2005.
"Schooling and Labor Market Impacts of a Natural Policy Experiment,"
CEIS, vol. 19(4), pages 705-719, December.
- Patrinos, Harry Anthony & Sakellariou, Chris, 2004. "Schooling and labor market impacts of a natural policy experiment," Policy Research Working Paper Series 3460, The World Bank.
- Case, Anne & Fertig, Angela & Paxson, Christina, 2005. "The lasting impact of childhood health and circumstance," Journal of Health Economics, Elsevier, vol. 24(2), pages 365-389, March.
- Fernández, Raquel & Guner, Nezih & Knowles, John, 2001.
"Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality,"
CEPR Discussion Papers
3040, C.E.P.R. Discussion Papers.
- Raquel Fernández & Nezih Guner & John Knowles, 2005. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," The Quarterly Journal of Economics, Oxford University Press, vol. 120(1), pages 273-344.
- Raquel Fernandez & Nezih Guner & John Knowles, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," NBER Working Papers 8580, National Bureau of Economic Research, Inc.
- Raquel Ferndez & Nezih Guner & John Knowles, 2001. "Love and Money: A Theoretical and Empirical Analysis of Household Sorting and Inequality," Penn CARESS Working Papers d3d043317c8e26c4039c21aa0, Penn Economics Department.
- Knowles, Stephen & Owen, P Dorian, 1997. "Education and Health in an Effective-Labour Empirical Growth Model," The Economic Record, The Economic Society of Australia, vol. 73(223), pages 314-28, December.
- Robert W. Fogel & Larry T. Wimmer, 1992.
"Early Indicators of Later Work Levels, Disease, and Death,"
NBER Historical Working Papers
0038, National Bureau of Economic Research, Inc.
- R. W. Fogel & L. T. Wimmer, 1992. "Early Indicators of Later Work Levels, Disease, and Death," CPE working papers 0008, University of Chicago - Centre for Population Economics.
- Sachs, J-D & Warner, A-M, 1996.
"Sources of Slow Growth in African Economies,"
545, Harvard - Institute for International Development.
- Hanson, G.H. & Harrison, A., 1995.
"Trade, Technology and Wage Inequality,"
95-20, Columbia - Graduate School of Business.
- Rubalcava, Luis N. & Teruel, Graciela M., 2004.
"The role of maternal cognitive ability on child health,"
Economics & Human Biology,
Elsevier, vol. 2(3), pages 439-455, December.
- Luis Rubalcava & Graciela Teruel, 2004. "The Role of Maternal Cognitive Ability in Child Health," Research Department Publications 3192, Inter-American Development Bank, Research Department.
- Psacharopoulos, George & Patrinos, Harry Anthony, 2002.
"Returns to investment in education : a further update,"
Policy Research Working Paper Series
2881, The World Bank.
- George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
- Carneiro, Pedro & Heckman, James J., 2003.
"Human Capital Policy,"
IZA Discussion Papers
821, Institute for the Study of Labor (IZA).
- Oded Galor & Joseph Zeira, 1993.
"Income Distribution and Macroeconomics,"
Review of Economic Studies,
Oxford University Press, vol. 60(1), pages 35-52.
- Cragg, Michael Ian & Epelbaum, Mario, 1996. "Why has wage dispersion grown in Mexico? Is it the incidence of reforms or the growing demand for skills?," Journal of Development Economics, Elsevier, vol. 51(1), pages 99-116, October.
- David E. Bloom & David Canning, 2004. "The Health and Wealth of Africa," World Economics, World Economics, Economic & Financial Publishing, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 5(2), pages 57-81, April.
- Anne Case & Darren Lubotsky & Christina Paxson, 2002.
"Economic Status and Health in Childhood: The Origins of the Gradient,"
American Economic Review,
American Economic Association, vol. 92(5), pages 1308-1334, December.
- Anne Case & Darren Lubotsky & Christina Paxson, 2001. "Economic Status and Health in Childhood: The Origins of the Gradient," NBER Working Papers 8344, National Bureau of Economic Research, Inc.
- Anne Case & Darren Lubotsky & Christina Paxson, 2002. "Economic status and health in childhood: the origins of the gradient," Working Papers 262, Princeton University, Woodrow Wilson School of Public and International Affairs, Center for Health and Wellbeing..
- Mayer-Foulkes, David, 2007. "Globalization and the Human Development Trap," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
- Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
- Behrman, Jere R, 1996. "The Impact of Health and Nutrition on Education," World Bank Research Observer, World Bank Group, vol. 11(1), pages 23-37, February.
- Matteo Cervellati & Uwe Sunde, 2005.
"Human Capital Formation, Life Expectancy, and the Process of Development,"
American Economic Review,
American Economic Association, vol. 95(5), pages 1653-1672, December.
- Cervellati, Matteo & Sunde, Uwe, 2005. "Human capital formation, life expectancy, and the process of development," Munich Reprints in Economics 20083, University of Munich, Department of Economics.
- Elchanan Cohn & John Addison, 1998. "The Economic Returns to Lifelong Learning in OECD Countries," Education Economics, Taylor & Francis Journals, vol. 6(3), pages 253-307.
- Glewwe, Paul & Jacoby, Hanan G, 1995. "An Economic Analysis of Delayed Primary School Enrollment in a Low Income Country: The Role of Early Childhood Nutrition," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 156-69, February.
- Kaushik Basu, 2003. "Analytical Development Economics: The Less Developed Economy Revisited," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262523442.
- David De Ferranti & Guillermo E. Perry & Indermit Gill & J. Luis Guasch & William F. Maloney & Carolina Sanchez-Paramo & Norbert Schady, 2003. "Closing the Gap in Education and Technology," World Bank Publications, The World Bank, number 15168, April.
- Jamison, Dean T., 1986. "Child malnutrition and school performance in China," Journal of Development Economics, Elsevier, vol. 20(2), pages 299-309, March.
- Glewwe, Paul & Jacoby, Hanan G. & King, Elizabeth M., 2001. "Early childhood nutrition and academic achievement: a longitudinal analysis," Journal of Public Economics, Elsevier, vol. 81(3), pages 345-368, September.
When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:36:y:2008:i:5:p:775-796. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.