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The causal effect of education on aggregate income

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  • Marcelo Soto

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Abstract

Empirical studies assume that the macro Mincer return on schooling is con- stant across countries. Using a large sample of countries this paper shows that countries with a better quality of education have on average relatively higher macro Mincer coeficients. As rich countries have on average better educational quality, differences in human capital between countries are larger than has been typically assumed in the development accounting literature. Consequently, factor accumulation explains a considerably larger share of income differences across countries than what is usually found.

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Bibliographic Info

Paper provided by Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC) in its series UFAE and IAE Working Papers with number 779.09.

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Length: 30
Date of creation: 01 Sep 2009
Date of revision:
Handle: RePEc:aub:autbar:779.09

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Keywords: Human capital; income growth; GMM estimation; development accounting.;

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Cited by:
  1. Fabrice Murtin & Martina Viarengo, 2011. "The Expansion and Convergence of Compulsory Schooling in Western Europe, 1950–2000," Economica, London School of Economics and Political Science, vol. 78(311), pages 501-522, 07.
  2. Fabrice Murtin & Martina Viarengo, 2008. "The convergence of compulsory schooling in Western Europe: 1950-2000," LSE Research Online Documents on Economics 23311, London School of Economics and Political Science, LSE Library.

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