The Longer-Term Effects of Human Capital Enrichment Programs on Poverty and Inequality: Oportunidades in Mexico

Estudios de Economía, Vol. 38, No. 1, p. 67, 2011

34 Pages Posted: 3 Jul 2011

See all articles by Douglas McKee

Douglas McKee

Cornell University

Petra Todd

University of Pennsylvania - Department of Economics; National Bureau of Economic Research (NBER); IZA Institute of Labor Economics

Date Written: June 1, 2011

Abstract

Previous empirical research has shown that Mexico’s Oportunidades program has succeeded in increasing schooling and improving health of disadvantaged children. This paper studies the program’s potential longer-term consequences for the poverty and inequality of these children. It adapts methods developed in DiNardo, Fortin and Lemieux (1996) and incorporates existing experimental estimates of the program’s effects on human capital to analyze how Oportunidades will affect future earnings of program participants. We nonparametrically simulate earnings distributions, with and without the program, and predict that Oportunidades will increase future mean earnings but have only modest effects on poverty rates and earnings inequality.

Keywords: Oportunidades, Human capital, Schooling, Health, Poverty, Inequality

JEL Classification: H50, I00, J24, O12, O54, O15

Suggested Citation

McKee, Douglas and Todd, Petra, The Longer-Term Effects of Human Capital Enrichment Programs on Poverty and Inequality: Oportunidades in Mexico (June 1, 2011). Estudios de Economía, Vol. 38, No. 1, p. 67, 2011 , Available at SSRN: https://ssrn.com/abstract=1876583

Douglas McKee (Contact Author)

Cornell University ( email )

Petra Todd

University of Pennsylvania - Department of Economics ( email )

Ronald O. Perelman Center for Political Science
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National Bureau of Economic Research (NBER)

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IZA Institute of Labor Economics

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