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Debt Relief, Demand for Education, and Poverty

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  • Era Dabla-Norris
  • John M. Matoovu
  • Paul Wade

Abstract

The objective of this paper is to arrive at a better understanding of the implications of debt relief savings for poverty reduction in HIPC countries by focusing on one important channel of impact—human capital accumulation. Our simulation results suggest that poverty and growth objectives would be mainly enhanced if resources are targeted at the primary and secondary level of education. In addition, targeting education spending to households below the poverty line can potentially have most significant impact on reducing poverty in the economy.

Suggested Citation

  • Era Dabla-Norris & John M. Matoovu & Paul Wade, 2002. "Debt Relief, Demand for Education, and Poverty," WIDER Working Paper Series DP2002-52, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:dp2002-52
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    File URL: https://www.wider.unu.edu/sites/default/files/dp2002-52.pdf
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    References listed on IDEAS

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    Cited by:

    1. Agénor, Pierre-Richard & Bayraktar, Nihal & El Aynaoui, Karim, 2008. "Roads out of poverty? Assessing the links between aid, public investment, growth, and poverty reduction," Journal of Development Economics, Elsevier, vol. 86(2), pages 277-295, June.

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