The Honorable Alejandro Toledo was democratically elected President of Peru from July 2001-July 2006.

He was born in a small and remote village in the Peruvian Andes, 12,000 feet above sea level. He is one of sixteen brothers and sisters from a family of extreme poverty. At the age of six, he worked as a street shoe shiner and simultaneously sold newspapers and lotteries to supplement the family income.

Thanks to an accidental access to education, Dr. Toledo was able to go from extreme poverty to the most prestigious academic centers of the world, later becoming one of the most prominent democratic leaders of Latin America. He is the first Peruvian president of indigenous descent to be democratically elected in five hundred years.

He received a BA from San Francisco University in Economics and Business Administration. From Stanford University, he received a MA in Economics of Human Resources, a MA in Economics, and a PhD in Economics of Human Resources.

He was born in a small and remote village in the Peruvian Andes, 12,000 feet above sea level. He is one of sixteen brothers and sisters from a family of extreme poverty. At the age of six, he worked as a street shoe shiner and simultaneously sold newspapers and lotteries to supplement the family income.

Thanks to an accidental access to education, Dr. Toledo was able to go from extreme poverty to the most prestigious academic centers of the world, later becoming one of the most prominent democratic leaders of Latin America. He is the first Peruvian president of indigenous descent to be democratically elected in five hundred years.

He received a BA from San Francisco University in Economics and Business Administration. From Stanford University, he received a MA in Economics of Human Resources, a MA in Economics, and a PhD in Economics of Human Resources.

This is the second lecture in a series of lectures Dr. Toledo will give. His final lecture will be on May 14th.

Edward Miguel received his PhD at Harvard in 2000, the same year he joined UC Berkeley as an assistant professor. He was promoted to associate professor in 2005. He recently received the Kenneth J. Arrow Award for Best Paper in Health Economics for "Worms: Identifying Impacts on Education and Health in the Presence of Treatment Externalities" (with Michael Kremer), which appeared in Econometrica. He also was the recipient of the 2005 Sloan Fellowship. At Berkeley he has received the Best Graduate Adviser Award and the Distinguished Teaching Award.

Professor Miguel is co-editor of the Journal of Human Resources, associate editor of the Journal of Development Economics and Review of Economics and Statistics, director of the U.C. Berkeley Scientific Evaluation for Global Action program, co-organizer for Working Group in African Political Economy, associate director at CIDER, an NBER faculty research associate, a CEPR research fellow, a senior fellow at the Bureau for Research and Economic Analysis of Development, and a research affiliate at the MIT Poverty Action Lab. He also has worked as a consultant for non-governmental organizations on projects in Delhi, Kenya, Tanzania, and Sierra Leone.

Fabrice Murtin will be a postdoctoral fellow with Stanford's Center for the Study of Poverty and Inequality. He has a Ph.D. in Economics from Paris-Jourdan Sciences Économiques and, from 2005-2007, served as visiting researcher at the London School of Economics.

He will discuss his paper, written with Christian Morrisson, "Education Inequalities and the Kuznets Curves: A Global Perspective Since 1870."

Abstract

This paper presents a new dataset on educational attainment (primary, secondary and tertiary schooling) at the world level since 1870. Inequality in years of schooling is found to be rapidly decreasing, but we show that this result is completely driven by the decline in illiteracy. Then, we turn to inequality in human capital and focus on Mincerian production function that accounts for diminishing returns to schooling. It explains the negative cross-country correlation between Mincerian returns to schooling and average schooling contrary to other functional forms. As a result, we show that world human capital inequality has increased since 1870, but does not exceed 10% of world income inequality. Next, we analyse the relationships between the national distributions of income and schooling. We show that human capital within countries exhibits the inverted U-shaped curve with respect to average schooling, namely a "Kuznets curve of education." We find that the usual Kuznets curve of income inequality is significant both in pooled and fixed-effects regressions over the period 1870-2000, and is robust to the inclusion of other variables in the regression such as schooling and human capital inequality. However, the "Kuznets effect" associated to GDP per capita is 4 times smaller in magnitude than the externality of average schooling favouring the decrease of income inequality within countries since 1870.

Cosponsored by the Political Theory Workshop.