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Simulating the impact of a raise in education salaries on economic growth in peru: A multidimensional approach

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Abstract

A simulation shows that increasing teacher salaries is likely to be (very) profitable for Peru. The required investments have in the long run a substantial return in economic growth as higher salaries would lead to higher teacher cognitive skills, which in turn impact student achievement. We suggest that international development banks should develop products for education finance with a long period (60 years or more) before repayments must be made.
Original languageEnglish
Place of PublicationMaastricht
PublisherUNU-MERIT
Publication statusPublished - 6 Jul 2021

Publication series

SeriesUNU-MERIT Working Papers
Number029
ISSN1871-9872

JEL classifications

  • c63 - "Computational Techniques; Simulation Modeling"
  • h52 - National Government Expenditures and Education
  • i25 - Education and Economic Development
  • n36 - "Economic History: Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy: Latin America; Caribbean"
  • o15 - "Economic Development: Human Resources; Human Development; Income Distribution; Migration"
  • o21 - "Planning Models; Planning Policy"
  • o24 - "Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy"

Keywords

  • Education
  • Return over investment
  • Economic growth
  • GDP
  • PISA
  • Cognitive Skills
  • Teachers
  • Development finance

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