ECO 2117 Lecture Notes - Lecture 16: Root Mean Square, Mobutu Sese Seko, Millennium Development Goals

• School: University of Ottawa
• Department: Economics
• Course: ECO 2117
• Professor: Charles Takongmo

Document Summary

The private return to education is the bene t to the student who returned to school. The social return to education is the bene t of society of the student staying in school longer. The private return to education is always higher than the social return to education. Both private and social returns to education are highest for primary education. The problem may be modelled using the multiple equilibria approach. Government intervention may be called for a move to a better" equilibrium. Sometimes this shift can be self-enforcing, so active interventions only needed at. Government intervention provides a push that can move the economy to a better equilibrium. Assumptions of the child labour multiple equilibria model. Luxury axiom: a household with su ciently high income would not send its children to work. This is just a model, it does not necessarily work in the real world. Child labour was used to ght mobutu in congo civil war.