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Human Capital and the Quality of Education in a Poverty Trap Model

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  • Maria Emma Santos

Abstract

This paper presents a model of a poverty trap that is caused by an unequal initial income and human capital distribution, and differences in the quality of education between children from the more and less advantaged social sectors. Under certain conditions, the economy converges to a situation with three stable and simultaneous equilibria, two of which constitute poverty traps, lowering the economy’s current and steady-state aggregate output level as well as its growth rate. The model suggests that a policy oriented to equalizing the quality of education would, in the long run, have potential in reducing initial inequalities.

Suggested Citation

  • Maria Emma Santos, 2009. "Human Capital and the Quality of Education in a Poverty Trap Model," OPHI Working Papers 30, Queen Elizabeth House, University of Oxford.
    • Handle: RePEc:qeh:ophiwp:ophiwp030
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    File URL: https://ophi.org.uk/working-paper-number-30/
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    Cited by:

    1. Olowookere Johnson Kolawole & Olanipekun Wahid Damilola & Sokunbi Gbenro Matthew & Aderemi Timothy Ayomitunde, 2022. "Human Capital Development and Sustainable Development: Evidence from Nigeria," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 67(1), pages 63-76, April.
    2. Muh. Amir Arham & Tresya F., 2015. "Public expenditures and poverty: evaluation of the government’s priority programs in Gorontalo Province," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 7(2), pages 107-119, April.
    3. Augusto Hernández Vidal, 2016. "El ciudadano cosmopolita: la globalización y el diseno de políticas educativas," Divergencia (Artículos Sobre Economía), Universidad Externado de Colombia, February.
    4. Yulia Tyumeneva & Yulia Kuzmina, 2012. "The Effect of One Extra Year of Schooling on Pisa Results: a Case of Countries with Different Tracking Systems," HSE Working papers WP BRP 08/EDU/2012, National Research University Higher School of Economics.

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