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Education Quality and Economic Growth: A New International Measure of Quality of Education

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  • Musibau, Hammed
  • Vespignani, Joaquin
  • Yanotti, Maria Belen

Abstract

This paper explores the impact of education quality on economic growth in 37 OECD countries. We developed a new dataset that combines mixed-frequency data, including low-frequency data (every three years) from the Programme for International Student Assessment (PISA) and annual data from the World Development Indicators (WDI), covering the period from 2000 to 2018. Our study investigates the relationship between education quality and economic growth. We found that a 1% increase in educational quality contributes to an annual economic growth rate of 2.8%. This result is significantly higher than previous research, which, based on cross-sectional PISA data, reported growth rates ranging from 0.4% to 2.3%.

Suggested Citation

  • Musibau, Hammed & Vespignani, Joaquin & Yanotti, Maria Belen, 2024. "Education Quality and Economic Growth: A New International Measure of Quality of Education," MPRA Paper 122859, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:122859
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    References listed on IDEAS

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    More about this item

    Keywords

    economic growth; education ; PISA data;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • I2 - Health, Education, and Welfare - - Education
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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