Advanced Search
MyIDEAS: Login to save this paper or follow this series

Rediscovering Education in Growth Regressions


Author Info

  • Marcelo Soto


This paper studies the puzzling lack of correlation between income and schooling in macro regressions. It is argued that the root of the puzzle is threefold. First, there is a problem of a proper definition of the way in which years of schooling should enter into a production function. Second, collinearity between physical and human capital stocks seriously undermines the ability of educational indicators to display any significance in growth regressions. Third, failure to cope with measurement error and endogeneity produces biased estimates. After dealing with these problems, the neoclassical approach to human capital is strongly supported by the data ... Ce Document technique examine la curieuse absence de corrélation entre le revenu et la scolarisation que l’on observe dans les régressions macro-économiques. Ce phénomène a trois origines. En premier lieu, un problème de définition de la manière d’intégrer les années de scolarisation dans une fonction de production. En deuxième lieu, l’existence de colinéarités entre les stocks de capital humain et physique affecte grandement la signification des indicateurs d’éducation dans les régressions de croissance. En troisième lieu, la difficulté à corriger les erreurs de mesure et l’endogénéité introduit des biais dans les estimations. Une fois ces problèmes résolus, il apparaît que les données corroborent largement l’approche néoclassique du capital humain ...

Download Info

If 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.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by OECD Publishing in its series OECD Development Centre Working Papers with number 202.

as in new window
Date of creation: Nov 2002
Date of revision:
Handle: RePEc:oec:devaaa:202-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: 33-(0)-1-45 24 85 00
Web page:
More information through EDIRC

Related research



No references listed on IDEAS
You can help add them by filling out this form.


Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Cohen, Daniel & Soto, Marcelo, 2001. "Growth and Human Capital: Good Data, Good Results," CEPR Discussion Papers 3025, C.E.P.R. Discussion Papers.
  2. Eric A. Hanushek, 2005. "The Economics of School Quality," German Economic Review, Verein für Socialpolitik, vol. 6(3), pages 269-286, 08.
  3. Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers 255, WIFO.
  4. Kaushik, Surendra K. & Kaushik, Shorav & Kaushik, Shobha, 2006. "How higher education in rural India helps human rights and entrepreneurship," Journal of Asian Economics, Elsevier, vol. 17(1), pages 29-34, February.
  5. Sawami Matsushita & Abu Siddique & Margaret Giles, 2006. "Education and Economic Growth: A Case Study of Australia," Economics Discussion / Working Papers 06-15, The University of Western Australia, Department of Economics.


This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:oec:devaaa:202-en. See general 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: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.