Chapter 8

Report
Chapter 8
Human Capital:
Education and
Health in Economic
Development
The Central Roles of Education
and Health


Health and education are important
objectives of development
Health and education are also important
components of growth and development
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8-2
Education and Health as Joint
Investments for Development


Greater health capital may improve the
returns to investments in education
Greater education capital may improve the
returns to investments in health
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8-3
Improving Health and Education: Why
Increasing Incomes Is Not Sufficient



Increases in income often do not lead to
substantial increases in investment in
children’s education and health
Better educated mothers tend to have
healthier children
Significant market failures in education and
health require policy action
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8-4
Investing in Health and Education:
The Human Capital Approach

Initial investments in health or education
lead to a stream of higher future income
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8-5
Figure 8.1
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8-6
Investing in Health and Education:
The Human Capital Approach


Initial investments in health or education
lead to a stream of higher future income
The present discounted value of this stream
of future income is compared to the costs of
the investment
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8-7
Figure 8.2
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8-8
Investing in Health and Education:
The Human Capital Approach



Initial investments in health or education
lead to a stream of higher future income
The present discounted value of this stream
of future income is compared to the costs of
the investment
Private returns to education are high, and
may be higher than social returns
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8-9
Table 8.1
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8-10
Child Labor



Child labor is a widespread phenomenon
The problem may be modeled using the
“multiple equilibria” approach
Government intervention may be called for
to move to a ‘better’ equilibrium
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8-11
Figure 8.3
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8-12
The Gender Gap: Women and
Education

Young females receive less education than
young males in nearly every LDC
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8-13
Table 8.2
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8-14
The Gender Gap: Women and
Education



Young females receive less education than
young males in nearly every LDC
Closing this educational gender gap is
economically desirable
Consequences of gender bias in health and
education
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8-15
Figure 8.4
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8-16
Educational Systems and
Development


Educational supply and demand: the
relationship between employment
opportunities and educational demands
Social versus private benefits and costs
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8-17
Figure 8.5
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8-18
Educational Systems and
Development



Educational supply and demand: the
relationship between employment
opportunities and educational demands
Social versus private benefits and costs
Distribution of education
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8-19
Figure 8.6
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8-20
Figure 8.7
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8-21
Educational Systems and
Development




Educational supply and demand: the
relationship between employment
opportunities and educational demands
Social versus private benefits and costs
Distribution of education
Education, inequality, and poverty
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8-22
Table 8.3
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8-23
Educational Systems and
Development





Educational supply and demand: the
relationship between employment
opportunities and educational demands
Social versus private benefits and costs
Distribution of education
Education, inequality, and poverty
Education, internal migration, and the brain
drain
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8-24
Health Systems and Development

Measurement and distribution
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8-25
Figure 8.8
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8-26
Health Systems and Development


Measurement and distribution
Disease burden
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8-27
Figure 8.9
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8-28
Health Systems and Development




Measurement and distribution
Disease burden
Malaria and parasitic worms
HIV and AIDS
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8-29
Table 8.4
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8-30
Table 8.5
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8-31
Health Systems and Development





Measurement and distribution
Disease burden
Malaria and parasitic worms
HIV and AIDS
Health and Productivity
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8-32
Figure 8.10
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8-33
Figure 8.11
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8-34
Health Systems and Development






Measurement and distribution
Disease burden
Malaria and parasitic worms
HIV and AIDS
Health and Productivity
Health systems policy
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8-35
Figure 8.12
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8-36
Policies for Health, Education,
and Income Generation


Integrated programs for the promotion of
health, education, and nutrition status in
poor families
Links between health and education
programs and microcredit programs
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8-37
Concepts for Review






AIDS
Basic education
Brain drain
Derived demand
Educational
certification
Educational gender
gap
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



Enrollment ratios,
gross and net
Human capital
Human
immunodeficiency
virus
Literacy
8-38
Concepts for Review (cont’d)



Private benefits of
education
Private costs of
education
Social benefits of
education
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

Social costs of
education
World Health
Organization
8-39

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