Causes of Poverty: Education and Ability. Poverty Lecture 14. Today’s topics/questions. Are low educational attainments a significant cause of poverty? How much schooling is optimal from the viewpoint of individuals? from society’s point of view?
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Poverty Lecture 14
Source: Census Bureau, Table Pov29.
Where r is the worker’s rate of discount and depends on: (1) the market rate of interest, and (2) how we feel about giving up some of today’s consumption in return for future rewards.
Where H is the direct costs of college and the remaining 43 terms are the earnings after college.
Goes to College
Attend College if:
PVCOL > PVHS
Quits after High School
Will bringing the quality of schooling for poor children up to the standards of our best public schools significantly reduce poverty? Explain.