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The Role of School Improvement in Economic Development

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Author Info
Eric A. Hanushek ()
Ludger Woessmann ()

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Abstract

The role of improved schooling, a central part of most development strategies, has become controversial because expansion of school attainment has not guaranteed improved economic conditions. This paper reviews the role of education in promoting economic wellbeing, with a particular focus on the role of educational quality. It concludes that there is strong evidence that the cognitive skills of the population – rather than mere school attainment – are powerfully related to individual earnings, to the distribution of income, and to economic growth. New empirical results show the importance of both minimal and high level skills, the complementarity of skills and the quality of economic institutions, and the robustness of the relationship between skills and growth. International comparisons incorporating expanded data on cognitive skills reveal much larger skill deficits in developing countries than generally derived from just school enrollment and attainment. The magnitude of change needed makes clear that closing the economic gap with developed countries will require major structural changes in schooling institutions.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 1911.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_1911

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Find related papers by JEL classification:
I20 - Health, Education, and Welfare - - Education - - - General
O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General

References listed on IDEAS
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  1. Dee, Thomas S., 2004. "Are there civic returns to education?," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1697-1720, August. [Downloadable!] (restricted)
  2. Esther Duflo, 2001. "Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment," American Economic Review, American Economic Association, vol. 91(4), pages 795-813, September. [Downloadable!] (restricted)
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Cited by:
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  1. Ludger Wößmann, 2008. "Checchi, D.: The Economics of Education. Human Capital, Family Background and Inequality," Journal of Economics, Springer, vol. 93(2), pages 218-221, March. [Downloadable!] (restricted)
  2. Becker, Sascha O. & Wößmann, Ludger, 2007. "Was Weber Wrong? A Human Capital Theory of Protestant Economic History," Discussion Papers in Economics 1366, University of Munich, Department of Economics. [Downloadable!]
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  3. Schoellman, Todd, 2008. "The Causes and Consequences of Cross-Country Differences in Schooling Attainment," MPRA Paper 9243, University Library of Munich, Germany, revised Jun 2009. [Downloadable!]
  4. Ludger Wößmann, 2008. "Efficiency and equity of European education and training policies," International Tax and Public Finance, Springer, vol. 15(2), pages 199-230, April. [Downloadable!] (restricted)
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  5. Falch, Torberg & Fischer, Justina AV, 2008. "Does a generous welfare state crowd out student effort? Panel data evidence from international student tests," Working Paper Series in Economics and Finance 694, Stockholm School of Economics. [Downloadable!]
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  6. Pasqualino Montanaro, 2008. "Learning divides across the Italian regions: Some evidence from national and international surveys," Questioni di Economia e Finanza (Occasional Papers) 14, Bank of Italy, Economic Research Department. [Downloadable!]
  7. Torberg Falch & Justina A.V. Fischer, 2008. "Does a Generous Welfare State Crowd out Student Achievement? Panel Data Evidence from International Student Tests," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  8. Carsten Schröder, 2008. "Cigno, A. and Werding, M.: Children and Pensions," Journal of Economics, Springer, vol. 95(1), pages 87-91, October. [Downloadable!] (restricted)
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