Growth, Inequality, and Poverty: Prospects for Pro-Poor Economic Development

By Anthony Shorrocks; Rolph Van Der Hoeven | Go to book overview

on education in order to reduce poverty and to speed up development appears to be justified. Our empirical findings indicate that improving the quality of education rather than merely expanding access to education should play a crucial role in development strategies.

Several issues for future research are immediately apparent from our analysis. First, the direction of causality between inequality and human capital accumulation somehow remains an open question. Notwithstanding our results in Table 5.2 , more empirical research based on alternative instrumental variables is probably necessary to support the interpretation given in our chapter. Second, while our findings provide an encouraging impetus for the use of education policies as part of anti-poverty programmes, a rigorous theoretical framework supporting such a claim is still missing.

Third, and most importantly, highlighting the importance of education policy, as we do, should be accompanied by a more precise identification of effective education policies that would actually generate the expected effects. This is an important caveat because recent empirical evidence for OECD countries and for selected East Asian countries tends to suggest that additional schooling resources do not automatically guarantee improved schooling outcomes (Gundlach, Wößmann, and Gmelin 2001 ; Gundlach and Wößmann 2001). The international empirical evidence presented in Wößmann (2001) indeed reveals that schooling outcomes depend more on schooling institutions than on schooling resources. Hence, creating efficient schooling systems is probably more important for improving the stock of human capital than increasing schooling expenditure.


APPENDIX

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Growth, Inequality, and Poverty: Prospects for Pro-Poor Economic Development
Table of contents

Table of contents

  • Unu World Institute for Development Economics Research (Unu/Wider) ii
  • Growth, Inequality, and Poverty iii
  • Contents v
  • List of Figures vii
  • List of Tables ix
  • List of Acronyms and Abbreviations xi
  • List of Contributors xiii
  • Acknowledgements xvi
  • Introduction 1
  • References 12
  • 1: Economic Policy, Distribution, and Poverty 13
  • References 28
  • Appendix 57
  • References 59
  • 3: Growth, Inequality, and Poverty 62
  • 4: The Growth Elasticity of Poverty 81
  • Appendix 102
  • References 105
  • 6: Growth, Distribution, and Poverty Reduction 107
  • References 123
  • Appendix: Method and Sources 149
  • References 151
  • References 175
  • 9: Twin Peaks 176
  • 9.6 Conclusion 194
  • 10: A Decomposition of Inequality and Poverty Changes in the Context of Macroeconomic Adjustment 197
  • References 220
  • References 249
  • References 271
  • Index 277
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