DABUS Carlos Dario
Land-Rich economies, education and economic development
DANIEL HEYMANN, SEBASTIÁN GALIANI, CARLOS DABÚS Y FERNANDO TOHMÉ
Serie estudios y perspectivas de CEPAL
Lugar: Buenos Aires; Año: 2006 p. 1 - 1
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 asArgentina established an extensive public education system and developed asophisticated service sector before starting significant manufacturingactivities.