SANTOS Maria Emma
congresos y reuniones científicas
A Poverty Trap Model with Human Capitlal and the Quality of Education
SANTOS, MARÍA EMMA
Rio de Janeiro
Conferencia; 2008 LACEA Annual Meeting; 2008
Latin American and Caribbean economic Association
This paper presents a poverty trap model caused by an unequal initial income and human capital distribution and differences in the quality of education between the children from more and less advantaged social sectors. Under certain conditions of the parameters, the economy converges to a situation with three stable and simultaneous equilibriums, two of which constitute poverty traps, lowering the economys current and steady state aggregate output level as well as the growth rate. The model suggests the potential that a policy oriented to equalize the quality of education would have in reducing initial inequalities.