Chapter

Education is Good for the Poor: A Note on Dollar and Kraay

Erich Gundlach, JosÉ Navarro De Pablo and Natascha Weisert

in Growth, Inequality, and Poverty

Published in print March 2004 | ISBN: 9780199268658
Published online April 2004 | e-ISBN: 9780191600876 | DOI: http://dx.doi.org/10.1093/0199268657.003.0005

Series: WIDER Studies in Development Economics

 Education is Good for the Poor: A Note on Dollar and Kraay

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A recent paper by Dollar and Kraay (2001) finds that higher primary educational attainment of the workforce does not increase the income of the poor except for its effect on average income. We test the robustness of their finding by using a broader measure of human capital that accounts for international differences in the quality of education. Our findings suggest that more quality‐adjusted education does increase the income of the poor in addition to its positive effect on average income. Hence, effective education policies should be an essential component of any poverty‐reduction strategy.

Keywords: education; growth; income distribution; poverty

Chapter.  7121 words. 

Subjects: Economic Development and Growth

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