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

  • Douglas McKee
  • Petra E. Todd

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.

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File URL: http://www.econ.uchile.cl/uploads/publicacion/9280621e48456f9c08db4563273defeb65032f67.pdf
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Article provided by University of Chile, Department of Economics in its journal Estudios de Economia.

Volume (Year): 38 (2011)
Issue (Month): 1 Year 2011 (June)
Pages: 67-100

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Handle: RePEc:udc:esteco:v:38:y:2011:i:1:p:67-100
Contact details of provider: Web page: http://www.econ.uchile.cl/

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  1. Samuel Freije & Rosangela Bando & Fernanda Arce, 2006. "Conditional Transfers, Labor Supply, and Poverty: Microsimulating Oportunidades," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  2. Nicola Persico & Andrew Postlewaite & Dan Silverman, 2004. "The Effect of Adolescent Experience on Labor Market Outcomes: The Case of Height," NBER Working Papers 10522, National Bureau of Economic Research, Inc.
  3. Angelucci, Manuela & De Giorgi, Giacomo & Rangel, Marcos A. & Rasul, Imran, 2010. "Family networks and school enrolment: Evidence from a randomized social experiment," Journal of Public Economics, Elsevier, vol. 94(3-4), pages 197-221, April.
  4. Gladys López-Acevedo, 2004. "México: Evolution of earnings inequality and rates of returns to education (1988-2002)," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 19(2), pages 211-284.
  5. FranÁois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling, and Child Labor: Micro-Simulating Brazil's Bolsa Escola Program," World Bank Economic Review, World Bank Group, vol. 17(2), pages 229-254, December.
  6. Jere R. Behrman & John Hoddinott, 2005. "Programme Evaluation with Unobserved Heterogeneity and Selective Implementation: The Mexican "PROGRESA" Impact on Child Nutrition," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(4), pages 547-569, 08.
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