2009
DOI: 10.1111/j.1467-999x.2009.04062.x
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Transitioning Out of Poverty

Abstract: We analyze the role of social environment and human capital formation in persistence of poverty and inequality. We present a Romer type variety model where the presence of economies of agglomeration in social environment may cause two basins of attraction; whereby we may interpret the lower basin as a poverty trap and the upper basin as a take-off region. We then consider the size of income transfer to regions and its effect on inequality and welfare. We provide supporting evidence of existing inequality and p… Show more

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Cited by 8 publications
(4 citation statements)
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References 55 publications
(67 reference statements)
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“…These findings are encouraging to the degree that Catholic schools are still relevant for children of Catholic immigrants in spite of changes in American Catholicism, immigrant constituency and certain contingencies that distinguish old from new patterns of immigration. We know that human capital formation remains one of the most important characteristic necessary to bridge the labor gap in a segmented economy and that parish schools are effective sites for such formation, especially among underrepresented urban minorities (Stern, 2007;Hoffer, 2000;Bryk, Lee, & Holland, 1993;Lee & Smith, 1997;Coleman & Hoffer, 1987;Crosnoe, 2004;Coleman, 1987;Reed, 2008;Holzer & Nightengale, 2007;Robles, 2009;Brasington, 2010).…”
Section: Discussion and Findingsmentioning
confidence: 99%
“…These findings are encouraging to the degree that Catholic schools are still relevant for children of Catholic immigrants in spite of changes in American Catholicism, immigrant constituency and certain contingencies that distinguish old from new patterns of immigration. We know that human capital formation remains one of the most important characteristic necessary to bridge the labor gap in a segmented economy and that parish schools are effective sites for such formation, especially among underrepresented urban minorities (Stern, 2007;Hoffer, 2000;Bryk, Lee, & Holland, 1993;Lee & Smith, 1997;Coleman & Hoffer, 1987;Crosnoe, 2004;Coleman, 1987;Reed, 2008;Holzer & Nightengale, 2007;Robles, 2009;Brasington, 2010).…”
Section: Discussion and Findingsmentioning
confidence: 99%
“…In other words, the authors suggest both the existence of poverty and middleincome traps and the possibility of leaving them for affluence. Brasington et al (2010) propose a theoretical model based on human capital accumulation and technological progress: they show that, if two regions have different levels of economies of agglomeration, with one stronger than the other in this respect, then the former will attract more human capital than the latter, which will therefore end in a (relative) poverty trap. The same paper proposes also an empirical test of the model, based on US data, which confirms the theoretical prediction showing that some areas are weaker attractors of human capital than others.…”
Section: Literature Reviewmentioning
confidence: 99%
“…While economists can improve access to economic market opportunities, 38 institutional policy makers can minimize discrimination and global governance entities instigate intergenerational transfers, social scientists should focus on how to build societal trust in merit-based intergenerational mobility (Brasington, Kato & Semmler, 2010;Ghilarducci, 2005;Puaschunder, 2017a). Meritocracy as the psychological backbone of a fair society; together with hopeful trust in intertemporal improvement are key drivers of economic productivity, opening an innovative path to a longterm equitable society.…”
Section: Meritocracymentioning
confidence: 99%