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The impact of Oportunidades on human capital and income distribution: a top-down/bottom-up approach

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  • Debowicz, Dario
  • Golan, Jennifer

Abstract

This paper analyses the effects of Oportunidades conditional cash transfer program on human capital and labour markets, accounting for its partial and general equilibrium effects. Linking a microeconometric and a general equilibrium model in a bidirectional way, the paper explicitly takes spill-over effects of the program into account. Preliminary results suggest that partial equilibrium analysis alone may underestimate the program effects. Extending the coverage of the program leads to a significant increase in school attendance, which reduces labor supply and so increases equilibrium wages of the children who remain at work. This indirectly alters the income distribution.

Suggested Citation

  • Debowicz, Dario & Golan, Jennifer, 2012. "The impact of Oportunidades on human capital and income distribution: a top-down/bottom-up approach," Conference papers 330252, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:330252
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    File URL: https://ageconsearch.umn.edu/record/330252/files/5995_Debowicz.pdf
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    References listed on IDEAS

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