The document seeks to analyze the incidence of education policies on Uruguay’s skill and unskilled labor stocks. This being said, the authors claim that the actual effect of education policies depend on effective budget allocation across all educational levels. Furthermore, the document highlights how the budget allocation by means of educative policies of the central government can favor the accumulation of human capital, thereby influencing the stock of skilled workers in Uruguay’s labor market.

This article is organized as follows. After a brief introduction, section two describes Uruguay’s current education budget allocation, whilst section three presents the education model introduced by the authors, as well as its characteristics and properties. On its part, section four explores the different vehicles that can be used to maximize workers’ skills. Finally, chapter five delivers some concluding arguments on the matter.

To conclude, the authors claim that the stocks of skill and unskilled labor have an important role in Uruguay’s economic performance. This being said, the paper suggests that the country’s education policies can affect the evolution of these stocks, thereby influencing Uruguay’s labor market. Moreover, the authors conclude that the investigation provides evidence of how the effects of education policies depend on effective budget allocation across all educational levels.

The document is available in English