Docquier, Frédéric; Müller, Tobias; Naval, Joaquín - Institute for the Study of Labor (IZA) - 2014
path. Hence, we examine the effectiveness of different development policies to exit the poverty trap. Our numerical … experiments show that using means-tested education subsidies is the most cost-effective single policy option. However, for longer … time horizons, or as the economy gets closer to the poverty trap threshold, combining means-tested education and wage …