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

Gustavo Yamada, Juan Castro, Arlette Beltrán and Maria A. Cardenas

Working Papers MPIA from PEP-MPIA

Abstract: 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 percent of GDP each year, public intervention could, by year 2015, add 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 education.

Keywords: Millennium development goals; education; human capital; GDP growth; poverty; Peru (search for similar items in EconPapers)
JEL-codes: C25 C41 C61 I32 O41 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-cmp, nep-dev, nep-edu, nep-hrm and nep-lam
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https://portal.pep-net.org/documents/download/id/12036 (application/pdf)

Related works:
Journal Article: Educational attainment, growth and poverty reduction within the MDG framework: simulations and costing for the Peruvian case (2009)
Working Paper: Educational Attainment, Growth and Poverty Reduction within the MDG Framework: Simulations and Costing for the Peruvian Case (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:lvl:mpiacr:2008-05

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