EDUCAÇÃO DOS JOVENS, ANALFABETISMO E O CUSTO GOVERNO: TEORIA E APLICAÇÕES ECONOMÉTRICAS PARA O BRASIL

The objective of this paper is to develop a theoretical model that take into account the role of institutions in the Brazilian States and their impact on the education of the youth and on illiterate people. Here, the institutions mean educational policies, government efficiency, level of technology, and labor market structure. In the empirical test we use panel data for the Brazilian States for the period 1991-2000. In general the results are the following ones: i) The education investment showed to be effective only in curbing illiteracy and has opposite effect on keeping youth at high school; ii) The government efficiency seems to affect the youth to get education above eight years; iii) The institutions formed by labor market structure, level of technology and educational infrastructure showed to be the most important aspect for youth to educate and illiterate people to become literate.