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A note on schooling in development accounting

Author

Listed:
  • Caselli, Francesco
  • Ciccone, Antonio

Abstract

How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development accounting literature by describing a nonparametric 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.

Suggested Citation

  • Caselli, Francesco & Ciccone, Antonio, 2011. "A note on schooling in development accounting," LSE Research Online Documents on Economics 121768, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:121768
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    File URL: http://eprints.lse.ac.uk/121768/
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    More about this item

    Keywords

    schooling; production; efficiency; human capital; development accounting; growth accounting;
    All these keywords.

    JEL classification:

    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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