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A micro-decomposition analysis of the macroeconomic determinants of human development, Volume 1
 
Author:Lambert, Sylvie; Ravallion, Martin; van de Walle, Dominique; Collection Title:Policy Research working paper ; no. WPS 4358
Country:World; Date Stored:2007/09/19
Document Date:2007/09/01Document Type:Policy Research Working Paper
SubTopics:Primary Education; Rural Poverty Reduction; Education For All; Inequality; Population PoliciesLanguage:English
Region:The World RegionReport Number:WPS4358
Volume No:1  

Summary: This paper shows how differences in aggregate human development outcomes over time and space can be additively decomposed into a pure economic-growth component, a component attributed to differences in the distribution of income, and components attributed to "non-income" factors and differences in the model linking outcomes to income or non-income characteristics. The income effect at the micro level is modeled non-parametrically, so as to flexibly reflect distributional changes. The paper illustrates the decomposition using data for Morocco and Vietnam, and the results offer some surprising insights into the observed aggregate gains in schooling attainments. A user friendly STATA program is available to implement the method in other settings.

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