The impact of Oportunidades on human capital and income distribution: a top-down/bottom-up approach

Dario Debowicz and Jennifer Golan

No 330252, Conference papers from Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project

Abstract: This paper analyses the effects of Oportunidades conditional cash transfer program on human capital and labour markets, accounting for its partial and general equilibrium effects. Linking a microeconometric and a general equilibrium model in a bidirectional way, the paper explicitly takes spill-over effects of the program into account. Preliminary results suggest that partial equilibrium analysis alone may underestimate the program effects. Extending the coverage of the program leads to a significant increase in school attendance, which reduces labor supply and so increases equilibrium wages of the children who remain at work. This indirectly alters the income distribution.

Keywords: Labor and Human Capital; Consumer/Household Economics (search for similar items in EconPapers)
Pages: 44
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:ags:pugtwp:330252

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