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CEPAL Review No. 77, August 2002
  • E-ISSN: 16840348

Abstract

This article analyses the challenges facing education in Latin America and its relation to labor market performance, against a background of severe long-standing income and social inequalities and now also the effects of globalization. It examines the degree to which higher educational attainment results in positive labor market outcomes (employment and earnings) and finds that, in spite of very large investments in education reform, the Latin American countries are falling behind their global competitors. Calculations made by the author of the education premiums in selected countries, by educational attainment and gender, show that labor market returns to education are positive or mixed but, in the case of unemployment, are often negative. The article suggests policies that could provide a more competitive labor force and more prepared human capital, and concludes with concrete proposals for confronting globalization.

Related Subject(s): Economic and Social Development

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