Do modern forms of human capital matter in primitive economies? Comparative evidence from Bolivia

Ricardo Godoy*, Dean S. Karlan, Shanti Rabindran, Tomás Huanca

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

20 Scopus citations

Abstract

We examine the correlation between modern human capital and income among adult men in four foraging-horticultural societies of Bolivia. Despite their remote location, we find results similar to those found in developed nations. We find that: (a) education correlates with 4.5% higher overall income and with 5.9% higher wages and math skills correlates with 13.5% higher cash income, and (b) the positive correlation between education or math skills and income is higher among households closer to market towns. The high returns to modern human capital even in highly autarkic economies might explain why people in those societies reduce investments in the accumulation of traditional folk knowledge.

Original languageEnglish (US)
Pages (from-to)45-53
Number of pages9
JournalEconomics of Education Review
Volume24
Issue number1
DOIs
StatePublished - Feb 1 2005

Keywords

  • Economic development
  • Economic impact
  • Human capital
  • Rate of return

ASJC Scopus subject areas

  • Education
  • Economics and Econometrics

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