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Education Quality and Development Accounting

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  • Todd Schoellman

Abstract

This paper measures the role of quality-adjusted years of schooling in accounting for cross-country output per worker differences. While data on years of schooling are readily available, data on education quality are not. I use the returns to schooling of foreign-educated immigrants in the U.S. to measure the education quality of their birth country. Immigrants from developed countries earn higher returns than do immigrants from developing countries. I show how to incorporate this measure of education quality into an otherwise standard development accounting exercise. The main result is that cross-country differences in education quality are roughly as important as cross-country differences in years of schooling in accounting for output per worker differences, raising the total contribution of education from 10% to 20% of output per worker differences. Copyright 2012, Oxford University Press.

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File URL: http://hdl.handle.net/10.1093/restud/rdr025
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Bibliographic Info

Article provided by Oxford University Press in its journal The Review of Economic Studies.

Volume (Year): 79 (2012)
Issue (Month): 1 ()
Pages: 388-417

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Handle: RePEc:oup:restud:v:79:y:2012:i:1:p:388-417

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