Globalisation, Poverty and Inequality (Development Centre by Organization for Economic Co-operation and Development

By Organization for Economic Co-operation and Development

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Additional info for Globalisation, Poverty and Inequality (Development Centre Seminars)

Sample text

Finally, work is needed on empirical evidence in support of the various hypotheses examined. By the very nature of the issues, this evidence is difficult to gather because it can be obtained only from joint study in depth of the evolution of the structure of earnings and of the demand for schooling in the medium and long run. Such case studies are scarce, so not very much can be done for the moment. Nevertheless, the availability in several countries of repeated household surveys where both the rate of return to education and schooling behaviour can be observed during periods often extending over 15 years or more should permit making significant progress in that direction.

HUNTINGTON, S. (1968), Political Order in Changing Societies, New Haven. KATZ, L. and D. AUTOR (1999), “Changes in the Wage Structure and Earnings Inequality”, in O. ASHENFELTER and D. CARD (eds), Handbook for Labor Economics, Vol. 3A, North Holland. K IM , S. and Y. K IM (2000), “Growth Gains from Trade and Education”, Journal of International Economics, 50. KRUGMAN, P. (2000), “Technology, Trade and Factor Prices”, Journal of International Economics, 50. KRUGMAN, P. (1995), “Technology, Trade and Factor Prices”, NBER Working Paper No.

If it cannot, because, for instance, these groups are too close to the limit of subsistence, it may still be in the elite’s interest to pay directly part of the subsidy to education. The equilibrium educational policy will then simply reflect the trade-off between costs and benefits as perceived by the elite. Consider first that external integration occurs through trade in goods and services. Where skilled labour and capital are scarce, the economy has a comparative advantage in the good produced with unskilled labour as a specific factor, and domestic prices become independent from domestic supply and demand conditions.

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