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A micro-decomposition analysis of the macroeconomic determinants of human development


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Author: Lambert, Sylvie ; Ravallion, Martin ; van de Walle, Dominique ; 
Document Date: 2007/09/01
Document Type: Policy Research Working Paper
Report Number: WPS4358
Volume No: 1 of 1
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Abstract

This paper shows how differences in aggregate human development outcomes over time and space can be additively decomposed into a pure economic-growth component, a component attributed to differences in the distribution of income, and components attributed to "non-income" factors and differences in the model linking outcomes to income or non-income characteristics. The income effect at the micro level is modeled non-parametrically, so as to flexibly reflect distributional changes. The paper illustrates the decomposition using data for Morocco and Vietnam, and the results offer some surprising insights into the observed aggregate gains in schooling attainments. A user friendly STATA program is available to implement the method in other settings.
 
 

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