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The longer-term effects of human capital enrichment programs on poverty and inequality : Oportunidades in Mexico

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  • Douglas McKee
  • Petra E. Todd

Abstract

Previous empirical research has shown that Mexico’s Oportunidades program has succeeded in increasing schooling and improving health of disadvantaged children. This paper studies the program’s potential longer-term consequences for the poverty and inequality of these children. It adapts methods developed in DiNardo, Fortin and Lemieux (1996) and incorporates existing experimental estimates of the program’s effects on human capital to analyze how Oportunidades will affect future earnings of program participants. We nonparametrically simulate earnings distributions, with and without the program, and predict that Oportunidades will increase future mean earnings but have only modest effects on poverty rates and earnings inequality.

Suggested Citation

  • Douglas McKee & Petra E. Todd, 2011. "The longer-term effects of human capital enrichment programs on poverty and inequality : Oportunidades in Mexico," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 67-100, June.
    • Handle: RePEc:udc:esteco:v:38:y:2011:i:1:p:67-100
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    References listed on IDEAS

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    5. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 1019-1053, October.
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    8. Mark R. Rosenzweig & Kenneth I. Wolpin, 1994. "Are There Increasing Returns to the Intergenerational Production of Human Capital? Maternal Schooling and Child Intellectual Achievement," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 670-693.
    9. Samuel Freije & Rosangela Bando & Fernanda Arce, 2006. "Conditional Transfers, Labor Supply, and Poverty: Microsimulating Oportunidades," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2006), pages 73-124.
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    Cited by:

    1. Armando Barrientos & Juan Miguel Villa, 2014. "Economic and political inclusion of human development conditional transfer programmes in Latin America?," Global Development Institute Working Paper Series 20014, GDI, The University of Manchester.
    2. Dietrich, Stephan & Malerba, Daniele & Barrientos, Armando & Gassmann, Franziska & Mohnen, Pierre & Tirivayi, Nyasha & Kavuma, Susan & Matovu, Fred, 2017. "Social protection investments, human capital, and income growth: Simulating the returns to social cash transfers in Uganda," MERIT Working Papers 2017-029, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    3. Pfutze, Tobias, 2019. "Should program graduation be better targeted? The other schooling outcomes of Mexico’s Oportunidades," World Development, Elsevier, vol. 123(C), pages 1-1.
    4. Albino Prada & Patricio Sanchez-Fernandez, 2021. "World Child Well-Being Index: A Multidimensional Perspective," Child Indicators Research, Springer;The International Society of Child Indicators (ISCI), vol. 14(6), pages 2119-2144, December.
    5. Vanesa Jorda & Jose M. Alonso, 2020. "What works to mitigate and reduce relative (and absolute) inequality?: A systematic review," WIDER Working Paper Series wp-2020-152, World Institute for Development Economic Research (UNU-WIDER).

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    Keywords

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    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • I00 - Health, Education, and Welfare - - General - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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