Lecture Development economics - Lecture 28: Human Capital: Education and health in economic development

Human Capital: Education
and Health in Economic
Development
Lecture 28


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

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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

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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

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Investing in Health and Education:
The Human Capital Approach
• Initial investments in health or education
lead to a stream of higher future income

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Figure 8.1

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Investing in Health and Education:
The Human Capital Approach
• Initial investments in health or education
lead to a stream of higher future income
• The present discounted value of this
stream of future income is compared to
the costs of the investment

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Figure 8.2

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Investing in Health and Education:
The Human Capital Approach
• Initial investments in health or education
lead to a stream of higher future income
• 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

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Table 8.1

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The Gender Gap: Women and
Education
• Young females receive less education
than young males in nearly every LDC

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Table 8.2

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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

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Figure 8.4

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

• Social versus private benefits and costs

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Figure 8.5

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Educational Systems and
Development
• Educational supply and demand: the
relationship between employment
opportunities and educational demands
• Social versus private benefits and costs
• Distribution of education

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Figure 8.6

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Figure 8.7

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Educational Systems and
Development
• Educational supply and demand: the
relationship between employment
opportunities and educational demands
• Social versus private benefits and costs
• Distribution of education
• Education, inequality, and poverty

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Table 8.3

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Educational Systems and
Development
• Educational supply and demand: the
relationship between employment
opportunities and educational demands
• Social versus private benefits and costs
• Distribution of education
• Education, inequality, and poverty
• Education, internal migration, and the
brain drain
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Health Systems and
Development
• Measurement and distribution

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Figure 8.8

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Health Systems and
Development
• Measurement and distribution
• Disease burden

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