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How much might human capital policies affect earnings inequalities and poverty?

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  • Jere R. Behrman

Abstract

Economic inequality and poverty have persisted in Latin America despite important changes in political and policy regimes. This paper explores the relationship between various human capital programs aimed to reduced poverty and how improvements of those in poverty in the left tail of the earning income distribution are likely to reduce inequality. First it reviews some recent benefit/cost estimates for human capital intervention in LAC, suggesting some investments in which the returns appear quite high. Then it turns over to how much increases in schooling attainment targeted to the poor would reduce poverty and income inequality. This is illustrated empirically using the 2004 Chilean Social Protection Survey data. Alternative simulations suggest significant impacts of well targeted increases in schooling attainment on reducing poverty and inequality.

Suggested Citation

  • Jere R. Behrman, 2011. "How much might human capital policies affect earnings inequalities and poverty?," Estudios de Economia, University of Chile, Department of Economics, vol. 38(1 Year 20), pages 8-41, June.
    • Handle: RePEc:udc:esteco:v:38:y:2011:i:1:p:8-41
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    File URL: http://www.econ.uchile.cl/uploads/publicacion/f84849a2d2e435dd52d0b873971ba1f74591db61.pdf
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    References listed on IDEAS

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    2. Joshua Angrist & Eric Bettinger & Erik Bloom & Elizabeth King & Michael Kremer, 2002. "Vouchers for Private Schooling in Colombia: Evidence from a Randomized Natural Experiment," American Economic Review, American Economic Association, vol. 92(5), pages 1535-1558, December.
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    4. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2005. "Long-Term Impacts of the Oportunidades Conditional Cash Transfer Program on Rural Youth in Mexico," Ibero America Institute for Econ. Research (IAI) Discussion Papers 122, Ibero-America Institute for Economic Research.
    5. Alderman, Harold, et al, 1996. "The Returns to Endogenous Human Capital in Pakistan's Rural Wage Labour Market," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(1), pages 29-55, February.
    6. Paul Gertler, 2004. "Do Conditional Cash Transfers Improve Child Health? Evidence from PROGRESA's Control Randomized Experiment," American Economic Review, American Economic Association, vol. 94(2), pages 336-341, May.
    7. Jere R. Behrman & Susan W. Parker & Petra E. Todd, 2009. "Schooling Impacts of Conditional Cash Transfers on Young Children: Evidence from Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 57(3), pages 439-477, April.
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    Cited by:

    1. Javier Núñez & Andrea Tartakowsky, 2007. "Inequality of outcomes vs. inequality of opportunities in a developing country. An exploratory analysis for Chile," Estudios de Economia, University of Chile, Department of Economics, vol. 34(2 Year 20), pages 185-202, December.
    2. Jaime Ruiz-Tagle, 2007. "Forecasting wage inequality," Estudios de Economia, University of Chile, Department of Economics, vol. 34(2 Year 20), pages 141-162, December.
    3. Hejnowicz, Adam P. & Raffaelli, David G. & Rudd, Murray A. & White, Piran C.L., 2014. "Evaluating the outcomes of payments for ecosystem services programmes using a capital asset framework," Ecosystem Services, Elsevier, vol. 9(C), pages 83-97.
    4. 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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    More about this item

    Keywords

    Inequality; Poverty; Human capital.;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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