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The Contribution of Schooling in Development Accounting: Results from a Nonparametric Upper Bound

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  • Francesco Caselli
  • Antonio Ciccone

Abstract

How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development ac- counting literature by describing a non-parametric upper bound on the increase in output that can be generated by more schooling. The advantage of our approach is that the upper bound is valid for any number of schooling levels with arbitrary patterns of substitution/complementarity. We also quantify the upper bound for all economies with the necessary data, compare our results with the standard development accounting approach, and provide an update on the results using the standard approach for a large sample of countries.

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Bibliographic Info

Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 597.

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Date of creation: Nov 2011
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Handle: RePEc:bge:wpaper:597

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Keywords: schooling; productivity effects; upper bound;

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