On the Emergence of Public Education in Land-Rich Economies

23 Pages Posted: 24 Dec 2007

See all articles by Sebastian Galiani

Sebastian Galiani

University of Maryland - Department of Economics

Daniel Heymann

Universidad de Buenos Aires

Carlos Dabus

Republic of Argentina - Instituto de Investigaciones Económicas y Sociales del Sur

Fernando Tohme

Republic of Argentina - Instituto de Investigaciones Económicas y Sociales del Sur

Date Written: December 3, 2007

Abstract

We analyze the emergence of large-scale education systems by modeling the incentives that the economic elite could have (collectively) to accept taxation destined to finance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by high-income groups. Our model seems capable to account for salient features of the development of Latin America in the 19th century, where, in particular, land-rich countries such as Argentina established an extensive public education system and developed a sophisticated service sector before starting significant manufacturing activities.

Suggested Citation

Galiani, Sebastian and Heymann, Daniel and Dabus, Carlos and Tohme, Fernando, On the Emergence of Public Education in Land-Rich Economies (December 3, 2007). Available at SSRN: https://ssrn.com/abstract=1077907 or http://dx.doi.org/10.2139/ssrn.1077907

Sebastian Galiani (Contact Author)

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States

Daniel Heymann

Universidad de Buenos Aires ( email )

Buenos Aires
Argentina

Carlos Dabus

Republic of Argentina - Instituto de Investigaciones Económicas y Sociales del Sur ( email )

12 de octubre 1198
Bahía Blanca, D8000CTX
Argentina

Fernando Tohme

Republic of Argentina - Instituto de Investigaciones Económicas y Sociales del Sur ( email )

12 de octubre 1198
Bahía Blanca, D8000CTX
Argentina

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