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The impact of Oportunidades on human capital and income distribution in Mexico: A top-down/bottom-up approach / Darío Debowicz; Jennifer Golan; Dario Debowicz

Journal of Policy Modeling, Volume: 36, Issue: 1, Pages: 24 - 42

Swansea University Author: Dario, Debowicz

DOI (Published version): 10.1016/j.jpolmod.2013.10.014

Abstract

This paper sets a computable general equilibrium model for the Mexican economy and a behavioural microsimulation model for Mexico's Oportunidades social transfers, and links the models in a bi-directional and iterative way. The model results suggest that partial equilibrium analysis may underes...

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Published in: Journal of Policy Modeling
Published: 2014
Online Access: http://isiarticles.com/bundles/Article/pre/pdf/11103.pdf
URI: https://cronfa.swan.ac.uk/Record/cronfa21533
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Abstract: This paper sets a computable general equilibrium model for the Mexican economy and a behavioural microsimulation model for Mexico's Oportunidades social transfers, and links the models in a bi-directional and iterative way. The model results suggest that partial equilibrium analysis may underestimate the effects of the program. Extending the coverage of the program leads to a significant increase in school attendance, which lowers labour supply and increases the equilibrium wages of the children who remain at work. The general equilibrium effect indirectly reduces income inequality and poverty at the national level.
Keywords: computable general equilibrium (CGE) model ; behavioural microsimulations ; Oportunidades ; child-work ; income inequality ; poverty
College: School of Management
Issue: 1
Start Page: 24
End Page: 42