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Educational Attainment, Growth and Poverty Reduction within the MDG Framework: Simulations and Costing for the Peruvian Case

  • Gustavo Yamada

    ()

    (Departamento de Economía, Universidad del Pacífico)

  • Juan Castro

    ()

    (Departamento de Economía, Universidad del Pacífico)

  • Arlette Beltrán

    ()

    (Departamento de Economía, Universidad del Pacífico)

  • María Cárdenas

    ()

    (Departamento de Economía, Universidad del Pacífico)

"We propose a model that accounts for the potential feedback between schooling performance, human capital accumulation and long run GDP growth, and links these results with poverty incidence. Our simulation exercise takes into account targets for education indicators and GDP growth itself (as arguments in our planner’s loss function) and provides two conclusions: (i) with additional funds which amount to 1% of GDP each year, public intervention could add, by year 2015, an extra 0.89 and 1.80 percentage points in terms of long-run GDP growth and permanent reduction in poverty incidence, respectively; and (ii) in order to engineer an intervention in the educational sector so as to transfer households the necessary assets to attain a larger income generation potential in the long run, we need to extend the original set of MDG indicators to account for access to higher educational levels besides primary.."

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File URL: http://www.up.edu.pe/ciup/SiteAssets/Lists/JER_Jerarquia/EditForm/20071217125839_DD-07-08.pdf
File Function: First Version, 2007
Download Restriction: no

Paper provided by Departamento de Economía, Universidad del Pacífico in its series Working Papers with number 07-08.

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Length: 41 pages
Date of creation: Jan 2007
Date of revision: Feb 2007
Handle: RePEc:pai:wpaper:07-08
Contact details of provider: Web page: http://www.up.edu.pe/

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  1. Gustavo Yamada, 2006. "Retornos a la educación superior en el mercado laboral: ¿Vale la pena el esfuerzo?," Working Papers 06-13, Departamento de Economía, Universidad del Pacífico, revised Dec 2006.
  2. Gustavo Yamada & Juan Castro, 2007. "Poverty, inequality, and social policies in Peru: As poor as it gets," Working Papers 07-06, Departamento de Economía, Universidad del Pacífico, revised Feb 2007.
  3. Robert J. Barro & Jong-Wha Lee, 2000. "International Data on Educational Attainment Updates and Implications," NBER Working Papers 7911, National Bureau of Economic Research, Inc.
  4. Juan Castro & Gustavo Yamada, 2006. "Evaluación de estrategias de desarrollo para alcanzar los Objetivos del Milenio en América Latina," Working Papers 06-11, Departamento de Economía, Universidad del Pacífico, revised Nov 2006.
  5. Francois Bourguignon & Francisco H.G. Ferreira & Nora Lusting, 2005. "The Microeconomics of Income Distribution Dynamics in East Asia and Latin America," World Bank Publications, The World Bank, number 14844.
  6. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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