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

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

for researchers. 15 These advances hold out the promise of improvements in our understanding of the interaction between educational outcomes and the distribution of income.

Fourth, if our analysis shed any light on the impact of an educational expansion on the distribution of income in Ceará, it was on the crucial role played by household dynamics in the process. We saw that the State appears to have something of a 'reserve army', awaiting conditions to enter paid or self-employment. As in other places where educational levels rose rapidly, this is to a large extent composed of women. 16 As they acquire education and enter the labour force, their fertility behaviour also changes, reducing the number of children in the family.

In income terms, each of these tendencies is positive for the families to which they belong. In fact, the participation and demographic changes arising from educational expansion account for a substantial share of the overall poverty reduction impact. Figures 11.8 illustrate the great importance of these gender-sensitive effects on the overall welfare of poor families. In the labour market, however, a large inflow of women into relatively underprivileged segments may generate downward wage pressure or enhance job competition. The extent to which Ceará will be able to capitalize on a more educated labour force depends, in large measure, on how effectively it ensures a level playing field for its women.

In closing, it should be noted that a number of important choices, or dimensions of household and worker behaviour, remained outside the scope of our analysis. Key amongst these is the possible decision to migrate. Greater endowments of education might affect the flows of migrants within the state—say, from rural areas to metropolitan Fortaleza—or outwards from the state. These decisions are likely to be determined by the relative conditions of labour demand, and thus wages, in these areas, and in other states. This falls outside the scope of this simple model, but this does not make it any less important a concern for policy-makers.


REFERENCES

Barros, R., Henriques, R., and Mendonça, R. (2000). 'Pelo Fim das Décadas Perdidas: Educação e Desenvolvimento Sustentado no Brasil'. In R. Henriques (ed.) Desigualdade e Pobreza no Brasil. IPEA, Rio de Janeiro.

Bourguignon, F., Ferreira, F. H. G., and Lustig, N. (1998). 'The Microeconomics of Income Distribution Dynamics in East Asia and Latin America'. The World Bank DECRA, Washington. Mimeo.

-249-

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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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