Educational Expansion and Income Distribution: A Microsimulation for Ceará

Francisco H. G. Ferreira and Phillippe George Leite

in Growth, Inequality, and Poverty

Published in print March 2004 | ISBN: 9780199268658
Published online April 2004 | e-ISBN: 9780191600876 | DOI:

Series: WIDER Studies in Development Economics

 Educational Expansion and Income Distribution: A Microsimulation for Ceará

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Does more education really mean less poverty and less inequality? This study presents the results of a microsimulation exercise for the Brazilian State of Ceará, which suggests that broad‐based policies aimed at increasing educational attainment would have substantial impacts on poverty reduction, but muted effects on inequality. While these results are highly dependent on assumptions about the behaviour of returns to education for the distribution of earnings, they are much more robust for the distribution of household income per capita. Over half of the poverty‐reducing effect of more education operates through greater incentives for labour force participation among the poor, and through reductions in fertility. Both of these effects operate largely through decisions made by poor women.

Keywords: education; income distribution; inequality; microsimulation; poverty

Chapter.  9746 words.  Illustrated.

Subjects: Economic Development and Growth

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