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A Micro-Decomposition Analysis of the Macroeconomic Determinants of Human Development

Sylvie Lambert (), Martin Ravallion () and Dominique van de Walle ()

Research Unit Working Papers from Laboratoire d'Economie Appliquee, INRA

Abstract: We show how differences in aggregate human development outcomes over time and space can be additively decomposed into a pure economic-growth component, a component attributed to differences in the distribution of income, and components attributed to “non-income” factors and differences in the model linking outcomes to income or non-income characteristics. The income effect at the micro level is modeled non-parametrically, so as to flexibly reflect distributional changes. The decomposition is illustrated using data for Morocco and Vietnam, and the results offer some surprising insights into the observed aggregate gains in schooling attainments. A user friendly STATA program is available to implement the method in other settings.

Keywords: macroeconomics; human development; distribution of income; Morocco; Vietnam. (search for similar items in EconPapers)
JEL-codes: O15 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev and nep-mac
Date: 2007-07

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Working Paper: A micro-decomposition analysis of the macroeconomic determinants of human development (2007) Downloads
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