Abstract
Human development is characterized by intergenerational traps that slow economic growth. Such a trap exists in Mexico, with increasing returns for education not accessed by most of the population. In addition, early child health and nutrition are strongly associated with later educational achievements. The distribution of schooling is multiple peaked with two social classes, those with complete lower secondary schooling or less, and those with 15 or more years of education. The lower group's schooling investment responds mainly to public education. Policies supporting nutrition, health, early child development and education must complement pro-market reform to effectively promote long-term economic growth.
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