Human capital

Question 1

HEALTH AND EDUCARTION

Answer 1

-Important for economic growth and development.
-healthy and educated workforce = more productive
85% are literate today

Question 1

What is human capotal?

Answer 1

society’s investment in the productive attributes of the population

Question 2

Does education lead to higher economic growth?

Answer 2

• Education = key role in enabling developing countries to absorb modern technology and methods of production
• a more educated workforce should be more productive
  -marginal private returns to invesmtent in education oftenhigh in dev countries, so an increase should see substantial productivity gains

Question 3

Net private rate of return to education

Answer 3

differences between costs and benefits of obtaining an additional year of education for the individual

Question 4

Net social rate of return to education

Answer 4

returns to the indiviudal accounting for additional costs borne by society from allocating resources to education eg buildings, equipment

Question 5

Private returns

Answer 5

demand

Question 6

social returns

Answer 6

supply of ed

Question 7

Does improved health lead to better econ growth?

Answer 7

• at the individual level, health = prerequisite for productivity
• at the country level, higher disease burden lowers productivity
• early life nutrition rtion, increase health althj, increase academic success, increase productivity
• low height (stunting), underweight

Question 8

Complementarities between ed and health

Answer 8

Greater education capital - higher returns to health
Greater health capital- higher returns to education

Question 9

Greater health capital increases return to investment in education

Answer 9

• Increase school attendance
• learn more effectively
• study done in Kenyan primary schools, effect of deworming drug, absenteeism decreased by 1/4

Question 10

Greater education capital increases return to investment in health

Answer 10

• basic hygiene taught in schools
• mum’s knowledge directly linked with child’s healtj
• greaer numeracy and literacy skills, better to treat illness

Question 11

Education discrimination

Answer 11

• young females often receive less education that young males in dev countries
  -important to reduce education gender gap as the women have a higher social rate of return to investmnet in education
• increase ed, increase productivity, decrease fertiitty
• women’s knwoeldge and childs healthH

Question 12

Health discrimination

Answer 12

• reflects social, culutral and economic factors
• 126m women missing in asia
• gender selective abortions

Question 13

Policy aimed at improving human capital

Answer 13

• increasing income msy not be enough
• doesnt guarantee increase spending on health and education

Question 14

CCT

Answer 14

• aimed at addressing both immediate and intergenerational poverty
• chash transfers proivded to poor households on the condition that they enroll all children in school and mainatain good attendance and attend regular ehealth checkups