Two essays on education and governament policies

Whether human capital increases or decreases wage uncertainty is an open ques- tion from an empirical standpoint. Yet, most policy prescriptions regarding human capital formation are based on models that impose riskiness on this type of invest- ment. We slightly deviate from the rest of the literature by allowing for non-linear income taxes in a two period model. This enables us to derive prescriptions that are robust to the risk characteristics of human capital: savings should be discouraged, human capital investments encouraged and both types of investment driven to an e¢ cient level from an aggregate perspective. These prescriptions are also robust to what choices are observed, even though the policy instruments used to implement them are not.

The risk-properties of human capital and the design of government policies

Whether human capital increases or decreases wage uncertainty is an open question from an empirical standpoint. Yet, most policy prescriptions regarding human capital formation are based on models that impose riskiness on this type of investment. In a two period and finite type optimal income taxation problem we derive prescriptions that are robust to the risk characteristics of human capital: savings should be discouraged, human capital investments encouraged and both types of investment driven to an efficient level from an aggregate perspective. These prescriptions are also robust to the assumptions regarding what choices are observed, despite policy instruments being not.

Should educational policies be regressive?

In this paper, we show that when the government is able to transfer wealth between generations, regressive policies are no longer optimal. The optimal educational policy can be decentralized through appropriate Pigouvian taxes and credit provision, is not regressive, and provides equality of opportunities in education (in the sense of irrelevance of parental income for the amount of education). Moreover, in the presence of default, the optimal policy can be implemented through income-contingent payments.

Economic Survey of Latin America and the Caribbean 2009-2010: The distributive impact of public policies

Includes bibliography

The income distribution problem in Latin America and the Caribbean

Includes bibliography

Trade, poverty and complementary policies in Latin America

Includes bibliography

Poverty and income distribution in Latin America: on the complementarities between trade policy and social public spending

Includes bibliography

Export promotion policies in CARICOM: main issues, effects and implications

Includes bibliography

The evolution of world income inequality: assessing the impact of globalization

Includes bibliography

Savings in Latin America after the mid 1990s: determinants, constraints and policies

Includes bibliography

Public policies and the competitiveness of agricultural exports

Includes bibliography

Overcoming the empty box syndrome": eterminants of income distribution in Latin America"

Includes bibliography

Productive structure and the functional distribution of income: an application of the input-output model

Includes bibliography

Foreign direct investment in the Caribbean: Trends, determinants and policies

Includes bibliography.

Income inequality in Latin America. Recent decline and prospects for its further reduction

Incluye bibliografía.