El nivel de alfabetismo como determinante en la probabilidad de caer en extrema pobreza: Un análisis econométrico para países en general

Abstract

One of the primary objectives of a country is to eradicate social problems such as: inequality, poverty, violence, corruption, among others. If these problems diminish, their indirect effect could be favourable, for example, foreign investment could increase, thereby generating more employment and therefore higher growth. In this way, governments have to analyse their strategies to combat these problems. The objective of this document is to show through an econometric analysis, as the education indicator, presented as the level of literacy, is determinant for the reduction of poverty. Particularly, we construct a linear probability model to find that the level of education can be determinant in the probability of falling into extreme poverty. The main result of the work, shows that a country with higher income has more opportunity to eradicate the probability of falling into extreme poverty, through literacy, than a low-income country. The model recommends to the authorities in charge of the policies, not to stop investing in education, since it would have a direct effect in the eradication of the social problem called poverty.