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Education Quality and the Empirics of Economic Growth

Author

Listed:
  • Mauro Rodrigues
  • Danilo P. Souza

Abstract

We extend Mankiw, Romer and Weil's (1992) classic paper by introducing differences in education quality (proxied by students' performance on the PISA test). This substantially reduces the role of human capital investment rates in explaining cross-country income differences. More importantly, the coefficient on this variable is now consistent with microeconomic evidence on returns to education.

Suggested Citation

  • Mauro Rodrigues & Danilo P. Souza, 2017. "Education Quality and the Empirics of Economic Growth," Working Papers, Department of Economics 2017_14, University of São Paulo (FEA-USP).
    • Handle: RePEc:spa:wpaper:2017wpecon14
    as

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    File URL: http://www.repec.eae.fea.usp.br/documentos/Rodrigues_Souza_14WP.pdf
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    References listed on IDEAS

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    1. Eric Hanushek & Ludger Woessmann, 2012. "Do better schools lead to more growth? Cognitive skills, economic outcomes, and causation," Journal of Economic Growth, Springer, vol. 17(4), pages 267-321, December.
    2. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-389, September.
    3. Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
    4. Knowles, Stephen & Owen, P. Dorian, 1995. "Health capital and cross-country variation in income per capita in the Mankiw-Romer-Weil model," Economics Letters, Elsevier, vol. 48(1), pages 99-106, April.
    5. Peter J. Klenow & Andrés Rodríguez-Clare, 1997. "The Neoclassical Revival in Growth Economics: Has It Gone Too Far?," NBER Chapters, in: NBER Macroeconomics Annual 1997, Volume 12, pages 73-114, National Bureau of Economic Research, Inc.
    6. Caselli, Francesco, 2005. "Accounting for cross-country income differences," LSE Research Online Documents on Economics 5266, London School of Economics and Political Science, LSE Library.
    7. Hanushek, Eric A., 2013. "Economic growth in developing countries: The role of human capital," Economics of Education Review, Elsevier, vol. 37(C), pages 204-212.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Education quality; human capital; cross-country income differences;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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