Does investment in schooling raise national income? Evidence from cross-country studies
AbstractThe economics literature identifies three effects of schooling on national income; the direct effect on the earnings of the workers who receive the schooling and the external effects on workers´ earnings and on physical capital due to schooling´s spillover effect on the productivity of these other factors of production. This paper reviews the estimates of the income elasticity of these three effects in the literature and finds that the evidence supports an elasticity of 0.34. The associated marginal rates of return on national investment in schooling in 2000 are found to average about 12 percent in countries with high levels of schooling and about 25 percent in countries with low levels of schooling.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by UNIVERSIDAD EAFIT in its series DOCUMENTOS DE TRABAJO CIEF with number 010605.
Date of creation: 04 Jun 2011
Date of revision:
Contact details of provider:
Human Capital; Schooling; Education; Physical Capital; National Income; Economic Growth;
Other versions of this item:
- Theodore Richard Breton, 2011. "Does Investment in Schooling Raise National Income? Evidence from Cross-Country Studies," REVISTA ECOS DE ECONOMÍA, UNIVERSIDAD EAFIT.
- E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
- I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- O47 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-23 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Centro de Investigaciones Económicas y Financieras (CIEF)).
If references are entirely missing, you can add them using this form.