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Land-Rich Economies, Education and Economic Development

Sebastian Galiani, Daniel Heymann, Carlos Dabús and Fernando Tohmé ()
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Daniel Heymann: CEPAL

CEDLAS, Working Papers from CEDLAS, Universidad Nacional de La Plata

Abstract: We analyze the emergence of large-scale education systems in a framework where growth is associated with changes in the con guration of the economy. We model the incentives that the economic elite could have (collectively) to accept taxation destined to nance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not necessarily arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by highincome groups. Our model seems capable to account for salient features of the development of Latin America in the 19th century, where, in particular, land-rich countries such as Argentina established an extensive public education system and developed a sophisticated service sector before starting signi cant manufacturing activities.

JEL-codes: N36 O12 I2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-edu and nep-his
Date: 2007-04
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Working Paper: Land-Rich Economies, Education and Economic Development (2005) Downloads
Working Paper: Land-Rich Economies, Education and Economic Development (2005) Downloads
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