The Role of School Improvement in Economic Development
AbstractThe 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 well-being, 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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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12832.
Date of creation: Jan 2007
Date of revision:
Note: CH ED EFG ITI LS PE
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Other versions of this item:
- Eric A. Hanushek & Ludger Woessmann, 2007. "The Role of School Improvement in Economic Development," CESifo Working Paper Series 1911, CESifo Group Munich.
- H4 - Public Economics - - Publicly Provided Goods
- I2 - Health, Education, and Welfare - - Education
- J0 - Labor and Demographic Economics - - General
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-01-28 (All new papers)
- NEP-DEV-2007-01-28 (Development)
- NEP-EDU-2007-01-28 (Education)
- NEP-HRM-2007-01-28 (Human Capital & Human Resource Management)
- NEP-LAB-2007-01-28 (Labour Economics)
- NEP-LTV-2007-01-28 (Unemployment, Inequality & Poverty)
- NEP-URE-2007-01-28 (Urban & Real Estate Economics)
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- Thomas S. Dee, 2003.
"Are There Civic Returns to Education?,"
NBER Working Papers
9588, National Bureau of Economic Research, Inc.
- Esther Duflo, 2000.
"Schooling and Labor Market Consequences of School Construction in Indonesia: Evidence from an Unusual Policy Experiment,"
NBER Working Papers
7860, National Bureau of Economic Research, Inc.
- 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.
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