Economic development is closely related to education attained by the
rural youth. This paper deals with the match between economic
development, levels of education and employment. The research
question is; does investment in education lead to an increase of wealth
and to a reduction of poverty of households in rural areas? A
comparison with the urban youth is made.
The Encuesta Nacional de Ingresos y Gastos de los Hogares (ENIGH)
provides information about households’ incomes, the economic
activities, job type, and the sector of employment. More detailed
information on employment and education is derived from the Encuesta
Nacional de Empleo (ENE) and from the Encuesta Nacional de
Educación, Capacitación y Empleo (ENECE).
The analysis in the paper provides insight in the differences in returns to
education in urban and rural areas, and in the relations between
education, employment, and poverty. We conclude that for the rural
youth the economic perspectives are increasing, though still lagging
behind the opportunities of the urban youth.