ABSTRACT

Education is a critical element of development to attain human wellbeing. Yet government-formulated policies based exclusively on economic growth formulas are receiving increasing criticism as an explanatory factor for development due to growing evidence that these policies do not show a directly positive effect on poverty reduction, as the trickle-down theory predicts (Aghion & Bolton, 1997), unless a redistributive policy is implemented in parallel (Kakwani & Pernia, 2000).