How Much Might Human Capital Policies Affect Earnings Inequalities and Poverty?

Estudios de Economía, Vol. 38, No. 1, pp. 9-41, 2011

33 Pages Posted: 1 Jul 2011

See all articles by Jere Behrman

Jere Behrman

University of Pennsylvania - Department of Economics

Date Written: June 2011

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 reduce 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.

Keywords: Inequality, Poverty, Human capital

JEL Classification: I24, I3, J24

Suggested Citation

Behrman, Jere R., How Much Might Human Capital Policies Affect Earnings Inequalities and Poverty? (June 2011). Estudios de Economía, Vol. 38, No. 1, pp. 9-41, 2011 . Available at SSRN: https://ssrn.com/abstract=1876579

Jere R. Behrman (Contact Author)

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
133 South 36th Street
Philadelphia, PA 19104-6297
United States
215-898-7704 (Phone)
215-573-2057 (Fax)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
52
Abstract Views
366
rank
400,705
PlumX Metrics