Document Type
Article
Date
10-2004
Keywords
tbd
Disciplines
Economics
Description/Abstract
This paper presents a simple two-period, dual economy model in which migration options may affect the informal financing of educational investments. When credit contracts are universally available and perfectly enforceable, spatially varied returns to human capital have no effect on educational investment patterns. But when financial markets are incomplete and informal mechanisms subject to imperfect contract enforcement must fill the breach, spatial inequality in infrastructure or other attributes that affect the returns to education create spatial differentiation in educational lending and consequently, in educational attainment. Although migration options can increase the returns to education, they can also choke off the informal finance on which poorer rural households depend for long-term, lumpy investments like children's education.
Recommended Citation
Mude, Andrew G.; Barrett, Christopher B.; McPeak, John G.; and Doss, Cheryl R., "Educational Investments in a Dual Economy" (2004). Economics - All Scholarship. 82.
https://surface.syr.edu/ecn/82
Source
Harvested from ssrn.com
Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.
Additional Information
This manuscript is from the Social Science Research Network, for more information see http://papers.ssrn.com/sol3/papers.cfm?abstract_id=716323#290740