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Education and income of the states of the United States: 1840–2000

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  • Chad Turner
  • Robert Tamura
  • Sean Mulholland
  • Scott Baier

Abstract

This article introduces original annual average years of schooling measures for each state from 1840 to 2000. Our methodology results in state estimates similar to those reported in the United States Census from 2000 back to 1940 and national, turn of the century estimates strikingly close to those presented by Schultz (Schultz, T. (1961). In N. B. Henry (Ed.), Social forces influencing American education. Chicago: University of Chicago Press.) and Fishlow (Fishlow, A. (1966). In H. Rosovsky (Ed.), Industrialization in two systems. John Wiley & Sons). To further determine the validity of our state schooling estimates, we first combine original data on real state per worker output with existing data to provide a more comprehensive series of real state output per worker from 1840 to 2000. We then estimate aggregate Mincerian earnings regressions and discover that the return to a year of schooling for the average individual in a state ranges from 11% to 15%. This range is robust to various time periods, various estimation methods, various assumptions about the endogeneity of schooling and is in line with the body of evidence from the labor literature. Copyright Springer Science+Business Media, LLC 2007

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File URL: http://hdl.handle.net/10.1007/s10887-007-9016-0
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Bibliographic Info

Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 12 (2007)
Issue (Month): 2 (June)
Pages: 101-158

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Handle: RePEc:kap:jecgro:v:12:y:2007:i:2:p:101-158

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Web page: http://www.springerlink.com/link.asp?id=102931

Related research

Keywords: State years of schooling; State real output per worker;

References

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  1. Sala-i-Martin, X. & Mulligan, C.B., 1995. "Measuring Aggregate Human Capital," Papers 723, Yale - Economic Growth Center.
  2. Simon Kuznets, 1946. "Introduction to "National Income: A Summary of Findings"," NBER Chapters, in: National Income: A Summary of Findings, pages 1-2 National Bureau of Economic Research, Inc.
  3. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
  4. Joshua Angrist & Alan Krueger, 1990. "Does Compulsory School Attendance Affect Schooling and Earnings?," Working Papers 653, Princeton University, Department of Economics, Industrial Relations Section..
  5. Clarence D. Long, 1958. "The Labor Force Under Changing Income and Employment," NBER Books, National Bureau of Economic Research, Inc, number long58-1, July.
  6. Peter 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.
  7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
  8. Douglas Staiger & James H. Stock, 1994. "Instrumental Variables Regression with Weak Instruments," NBER Technical Working Papers 0151, National Bureau of Economic Research, Inc.
  9. Mitchener, Kris James & McLean, Ian W., 1999. "U.S.Regional Growth And Convergence, 1880–1980," The Journal of Economic History, Cambridge University Press, vol. 59(04), pages 1016-1042, December.
  10. Goldin, Claudia & Katz, Lawrence, 2000. "Education and Income in the Early 20th Century: Evidence from the Prairies," Scholarly Articles 2624456, Harvard University Department of Economics.
  11. Simon Kuznets, 1946. "National Income: A Summary of Findings," NBER Books, National Bureau of Economic Research, Inc, number kuzn46-2, July.
  12. Jonathan Temple, 1999. "The New Growth Evidence," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 112-156, March.
  13. Robert Tamura, 2001. "Teachers, Growth, and Convergence," Journal of Political Economy, University of Chicago Press, vol. 109(5), pages 1021-1059, October.
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