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Does Learning to Add up Add up? The Returns to Schooling in Aggregate Data

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Author Info
Pritchett, Lant

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Abstract

The theoretical, conceptual, and practical difficulties with the use of cross-national data on schooling are so severe using aggregate data for any purpose for which individual level data would do should be avoided. There are, however, three questions for which the use of cross-national data on schooling could potentially help answer interesting questions for which individual data is insufficient. First, do differences in the evolution and dynamics of schooling help explain the big facts about the evolution and dynamics of output growth? Largely, no. Second, the existence and magnitude of output externalities to schooling is an important question with possible normative policy implications, and evidence for externalities requires at least some level of spatial aggregation. Does the cross-national data provide support for output externalities? Largely, no. Third, cross-national (or more broadly spatially aggregated) data allows the exploration of the impact on returns to schooling (or in the gap between private and social returns) of differences in economic environments. This last question seems a promising line for future research.

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This chapter was published in: Erik Hanushek & F. Welch (ed.) , Elsevier, chapter 11, pages 635-695, 2006.

This item is provided by Elsevier in its series Handbook of the Economics of Education with number 1-11.

Handle: RePEc:eee:educhp:1-11

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Web page: http://www.elsevierdirect.com/product.jsp?isbn=9780444513991

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Related research
This chapter was published in the following book, which is listed on IDEAS:
Erik Hanushek & F. Welch (ed.), 2006. "Handbook of the Economics of Education," Handbook of the Economics of Education, Elsevier, edition 1, volume 1, number 1, November. [Downloadable!] (restricted)
Keywords: growth; education; spillovers; Mincer;

Find related papers by JEL classification:
I2 - Health, Education, and Welfare - - Education

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  1. Eric A. Hanushek & Ludger Woessmann, 2009. "Do Better Schools Lead to More Growth? Cognitive Skills, Economic Outcomes, and Causation," NBER Working Papers 14633, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Michael A. Clemens, 2004. "The Long Walk to School: International education goals in historical perspective," Development and Comp Systems 0403007, EconWPA. [Downloadable!]
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  3. Marcelo Soto, 2006. "The Causal Effect of Education on Aggregate Income," Working Papers 0605, International Economics Institute, University of Valencia. [Downloadable!]
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  4. Belton Fleisher & Haizheng Li & Min-Qiang Zhao, 2009. "Human Capital, Economic Growth, and Regional Inequality in China," Working Papers 09-01, Ohio State University, Department of Economics. [Downloadable!]
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  5. Kai Carstensen & Erich Gundlach & Susanne Hartmann, 2008. "The Augmented Solow Model with Mincerian Schooling and Externalities," Kiel Working Papers 1408, Kiel Institute for the World Economy. [Downloadable!]
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  6. Eliot A. Jamison & Dean T. Jamison & Eric A. Hanushek, 2006. "The Effects of Education Quality on Income Growth and Mortality Decline," NBER Working Papers 12652, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Peter J. Klenow & Andres Rodriguez-Clare, 2004. "Externalities and Growth," NBER Working Papers 11009, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Klenow, Peter J. & Rodriguez-Clare, Andres, 2005. "Externalities and Growth," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 11, pages 817-861 Elsevier. [Downloadable!] (restricted)
  8. Gradstein, Mark & Nikitin, Denis, 2004. "Educational expansion : evidence and interpretation," Policy Research Working Paper Series 3245, The World Bank. [Downloadable!]
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