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Author: Deherrera, John A.
Resulting in 1 citation.
1. Deherrera, John A.
Investments in Human Capital and the Poverty Transition
Honors Project Paper 47, Department of Economics, Illinois Wesleyan University, 1994.
Cohort(s): NLSY79
Publisher: Department of Economics, Illinois Wesleyan University
Keyword(s): Educational Returns; Human Capital Theory; Modeling, Nonparametric Regression; Poverty; Transition, Welfare to Work; Undergraduate Research

Permission to reprint the abstract has not been received from the publisher.

In 1990, almost 34 million people were living below the government's official poverty level (Hoffman, p.395). That represents 13.5 percent of the total population, or more people than live in the state of California. Thus, it should be obvious that the plight of the poor is one which warrants serious concern on all levels -political, social, and economic. Unfortunately, the question of how to alleviate this dreadful problem is one that has long perplexed even the most brilliant of minds.

Using the National Longitudinal Survey of Youth (NLSY), this paper will explore the various strategies within the context of the human capital economic model and determine the effects of each on youth's probability of making the transition out of poverty. This data base is particularly wellsuited to the research in that it surveys a large sample of youth aged 14-17 in 1979 and [t]races them through the year 1991. Thus, it will be possible to follow each youth's investment decisions over this time period. A regression model will then be developed to estimate the effects of various human capital investment strategies on the probability of moving out of poverty when controlling for ability and a set of background variables. It is hypothesized that formal education will prove to be a powerful predictor of the poverty transition.

Bibliography Citation
Deherrera, John A. "Investments in Human Capital and the Poverty Transition." Honors Project Paper 47, Department of Economics, Illinois Wesleyan University, 1994.