The Impact of Public Education Expenditure on Human Capital, Growth, and Poverty in Tanzania and Zambia: A General Equilibrium Approach

August 1, 2001

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Erik Thorbecke, and Hong-Sang Jung. The Impact of Public Education Expenditure on Human Capital, Growth, and Poverty in Tanzania and Zambia: A General Equilibrium Approach, (USA: International Monetary Fund, 2001) accessed December 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The impact of public education expenditure on human capital, the supply of different labor skills, and its macroeconomic and distributional consequences is appraised within a multisector CGE model. The model is applied to and calibrated for two Heavily Indebted Poor Countries (HIPCs), Tanzania and Zambia. The simulation results suggest that education expenditure can raise economic growth. However, to maximize benefits from education expenditure, a sufficiently high level of physical investment is needed, as are measures that improve the match between the pattern of educational output and the structure of effective demand for labor. An important result of the simulation experiments is that a well-targeted pattern of education expenditure can be effective for poverty alleviation.

Subject: Education, Education spending, Expenditure, Labor, Labor supply, Wages

Keywords: CGE, Educated labor, Education, Education spending, Labor measure, Labor stock, Labor supply, Labor supply, Possibility frontier, Poverty, Public expenditure, Tanzania, Wage, Wage rate, Wages, WP, Zambia

Publication Details

Pages:

37
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/106
Stock No:

WPIEA1062001
ISBN:

9781451852899
ISSN:

1018-5941

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