Education success uncertain: further investigation
Universidad Torcuato Di Tella
Thesis degree name:
Maestría en Economía
Governments may influence product, literacy and unemployment rates through educative reforms and subsidies. This paper presents a model that analyzes qualitatively the effects on society from changes in educative policies. The framework is based on credit market imperfections, indivisibility in human capital investment and uncertainty in the outcome of education. A major conclusion is that educative reforms may lead to an increase in unemployment rate of educated workers in the society.