The Impact of Oportunidades on Human Capital and Income Distribution PDF Download

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The Impact of Oportunidades on Human Capital and Income Distribution

The Impact of Oportunidades on Human Capital and Income Distribution PDF Author: Dario Debowicz
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 44

Book Description
In an effort to inform social policy in Mexico, this paper analyzes the effects of a major social program on school attendance and household income distribution, accounting for its partial and general equilibrium effects. Linking a microeconometric simulation model and a general equilibrium model in a bidirectional way, the paper explicitly takes spillover effects of the Oportunidades conditional cash transfer program into account. Our results suggest that partial equilibrium analysis alone may underestimate the distributional effects of the program. Extending the coverage of the program leads to a significant increase in school attendance, which reduces labor supply and increases the equilibrium wages of the children who remain at work. This general equilibrium effect indirectly reduces income inequality and poverty at the national level.
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