Chapter 8 Human Capital: Education and Health in Economic Development.

Chapter 8

Human Capital: Education and Health in Economic Development

Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 8-2

The Central Roles of Education and Health

Health and education are important objectives of development

Health and education are also important components of growth and development


Education and Health as Joint Investments for Development

Greater health capital may improve the returns to investments in education

Greater education capital may improve the returns to investments in health


Improving Health and Education: Why Increasing Incomes Is Not Sufficient

Increases in income often do not lead to substantial increases in investment in children’s education and health

Better educated mothers tend to have healthier children

Significant market failures in education and health require policy action


Investing in Health and Education: The Human Capital Approach

Initial investments in health or education lead to a stream of higher future income


Figure 8.1




The present discounted value of this stream of future income is compared to the costs of the investment


Figure 8.2




The present discounted value of this stream of future income is compared to the costs of the investment

Private returns to education are high, and may be higher than social returns


Table 8.1


Child Labor

Child labor is a widespread phenomenon The problem may be modeled using the

“multiple equilibria” approach Government intervention may be called for

to move to a ‘better’ equilibrium


Figure 8.3


The Gender Gap: Women and Education

Young females receive less education than young males in nearly every LDC


Table 8.2


The Gender Gap: Women and Education

Young females receive less education than young males in nearly every LDC

Closing this educational gender gap is economically desirable

Consequences of gender bias in health and education


Figure 8.4


Educational Systems and Development

Educational supply and demand: the relationship between employment opportunities and educational demands

Social versus private benefits and costs


Figure 8.5




Social versus private benefits and costs Distribution of education


Figure 8.6


Figure 8.7




Social versus private benefits and costs Distribution of education Education, inequality, and poverty


Table 8.3




Social versus private benefits and costs Distribution of education Education, inequality, and poverty Education, internal migration, and the brain

drain


Health Systems and Development

Measurement and distribution


Figure 8.8



Measurement and distribution Disease burden


Figure 8.9



Measurement and distribution Disease burden Malaria and parasitic worms HIV and AIDS


Table 8.4


Table 8.5



Measurement and distribution Disease burden Malaria and parasitic worms HIV and AIDS Health and Productivity


Figure 8.10


Figure 8.11



Measurement and distribution Disease burden Malaria and parasitic worms HIV and AIDS Health and Productivity Health systems policy


Figure 8.12


Policies for Health, Education, and Income Generation

Integrated programs for the promotion of health, education, and nutrition status in poor families

Links between health and education programs and microcredit programs


Concepts for Review

AIDS Basic education Brain drain Derived demand Educational

certification Educational gender

gap

Enrollment ratios, gross and net

Human capital Human

immunodeficiency virus

Literacy


Concepts for Review (cont’d)

Private benefits of education

Private costs of education

Social benefits of education

Social costs of education

World Health Organization

Chapter 8 Human Capital: Education and Health in Economic Development.

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Transcript of Chapter 8 Human Capital: Education and Health in Economic Development.