Tải bản đầy đủ

Ecomomics evelopment 10th y p todaro and smith chapter 08

Chapter 8
Human Capital:
Education and
Health in
Economic
Development

Copyright © 2009 Pearson Addison-Wesley. All rights reserved.


Development & Human Capital


Health and education are investments in human capital to improve labor productivity



Investment in human capital is a major determinant of growth and development

Copyright © 2009 Pearson AddisonWesley. All rights reserved.


8-2


Development & Human Capital


Investment in health increases the return to investment in education



Investment in education increases the return to investment in health

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-3


Development & Human Capital
• Economic growth would not lead to substantial
increases in investment in children’s education and
health
• Better educated mothers tend to have educated
and healthy children
• Market failure in education and health requires
policy action
Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-4


Determinants of Education Demand


Wage or income differential paid to workers with various levels of education



Probability of success in finding a job in the formal sector




Direct private cost of education (e.g., tuition)



Indirect or opportunity cost of education (i.e., foregone income)

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-5


Return of Investment in Education


Initial investments in education lead to a stream of higher future income



The present discounted value of this stream of future income is compared to the cost of
education

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-6


The Economics of Education

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-7


Age-earnings Profiles by Level of
Education: Venezuela, 1989

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-8


Child Labor in LDCs


Some 120 million children work full-time



Some 150 million children work part-time



Of these 250 million working children

– 61% or 153 million in Asia
– 32% or 80 million in Africa
– 7% or 17 million in Latin America

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-9


Child Labor in LDCs


Child labor is a common practice in LDCs labor markets



The problem may be modeled using the “multiple equilibria” approach



Government intervention is needed to move to a ‘better’ equilibrium

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-10


Market for Child Labor
Adult Labor Supply

Wage
WE1
WH
WL

A

Adult & Child Labor Supply

E1
B

WE2

A’

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

T

• At WE1 labor supply is AA’
• As children enter the market, wage falls
• At WL adult and child labor supply is TT’
• At WE2, OA’ of adult and A’T’ children
are employed; a ban on child labor
C • moves E2 to E1
The S-shaped curve is supply of child
E2 labor between these wages: E1BCE2

T’

Demand for Labor

Employment

8-11


The Education Gender Gap
Females receive less education than males in LDCs. To close the gap

• The rate of return on education is higher for female than male
• Female education increases productivity and lowers fertility
• Educated mothers raise educated children
• Female education helps break the vicious cycle of poverty and
inadequate schooling for women
Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-12


Male and Female Education
Rates, 2004

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-13


The Education Gender Gap
Consequences of gender bias in health and education



Economic incentives



Cultural setting



Increase in family income does not always lead to better health and education

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-14


Social vs. Private Returns of Education


Social and private returns of education are higher in LDCs than MDCs



Private returns are higher than social returns



Social and private returns are higher for primary than secondary and higher education

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-15


Rate of Return to Investment in
Education

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-16


Optimal Level of Education
• Optimality criterion for education: maximum
difference between returns and costs
• Social: the optimal level of education is “primary”
where costs are subsidized and returns are high
• Private: the optimal level of education is “higher”
where costs are heavily subsidized and returns are
very high
Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-17


Social Costs & Returns

Social Returns

Costs/Returns
Tertiary

Social Costs

Secondary
Primary
Public decision: Invest in primary education

Years of schooling completed

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-18


Private Costs & Returns

Private Returns

Costs/Returns

Tertiary
Secondary

Private Costs

Primary
Private decision: Invest in higher education
Years of schooling completed

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-19


Education and Development


Distribution of education

– Lorenz curves for the distribution of education


Education Inequality and Poverty

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-20


Lorenz Curves for Education
in India and South Korea, 1990

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-21


Gini Coefficients for Education in
85 Countries, 1990

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-22


Health-Care and Development
Measurement and distribution



Life expectancy at birth



Child mortality



Malnutrition and hunger

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-23


Life Expectancy in World Regions

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-24


Under-5 Mortality Rates in Various
World Regions

Copyright © 2009 Pearson AddisonWesley. All rights reserved.

8-25


x

Tài liệu bạn tìm kiếm đã sẵn sàng tải về

Tải bản đầy đủ ngay

×