DABUS Carlos Dario
On the emergence of public education in land-rich economies
SEBASTIÁN GALIANI, DANIEL HEYMANN, CARLOS DABÚS Y FERNANDO TOHMÉ, CARLOS DABÚS
JOURNAL OF DEVELOPMENT ECONOMICS
Lugar: Amsterdam; Año: 2008 vol. 86 p. 434 - 434
We analyze the emergence of large-scale education systems in a framework where growth is associated with changes in the configuration of the economy. We model the incentives that the economic elite could have (collectively) to accept taxation destined to finance the education of credit-constrained workers. Contrary to previous work, in our model this incentive does not necessarily arise from a complementarity between physical and human capital in manufacturing. Instead, we emphasize the demand for human-capital-intensive services by high-income groups. Our model seems capable to account for salient features of the development of Latin America in the 19th century, where, in particular, land-rich countries such as Argentina established an extensive public education system and developed a sophisticated service sector before starting significant manufacturing activities.