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A Micro-Decomposition Analysis of the Macroeconomic Determinants of Human Development

Author

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  • LAMBERT Sylvie
  • RAVALLION Martin
  • VAN DE WALLE Dominique

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Abstract

We show how differences in aggregate human development outcomes over time and space can be additively decomposed into a pure economic-growth component, a component attributed to differences in the distribution of income, and components attributed to “non-income” factors and differences in the model linking outcomes to income or non-income characteristics. The income effect at the micro level is modeled non-parametrically, so as to flexibly reflect distributional changes. The decomposition is illustrated using data for Morocco and Vietnam, and the results offer some surprising insights into the observed aggregate gains in schooling attainments. A user friendly STATA program is available to implement the method in other settings.

Suggested Citation

  • LAMBERT Sylvie & RAVALLION Martin & VAN DE WALLE Dominique, 2007. "A Micro-Decomposition Analysis of the Macroeconomic Determinants of Human Development," Research Unit Working Papers 0711, Laboratoire d'Economie Appliquee, INRA.
  • Handle: RePEc:lea:leawpi:0711
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    File URL: http://www.inra.fr/Internet/Departements/ESR/UR/lea/documents/wp/wp0711.pdf
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    Cited by:

    1. David Mayer-Foulkes, 2011. "A Causal Panorama of Cross-Country Human Development," DEGIT Conference Papers c016_049, DEGIT, Dynamics, Economic Growth, and International Trade.

    More about this item

    Keywords

    macroeconomics; human development; distribution of income; Morocco; Vietnam.;

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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