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The Causes and Consequences of Cross-Country Differences in Schooling Attainment

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  • Schoellman, Todd

Abstract

This paper uses labor market evidence to quantify the importance of quality-adjusted schooling differences in accounting for cross-country income differences. I model labor markets that are consistent with cross-country data on schooling attainment, education quality, and the average returns to schooling of a country’s emigrants and its non-migrants. The model suggests that the Mincerian returns to schooling of immigrants to the United States measure the education qualities of their source countries. Measured this way, quality differences across countries are large, and the calibrated model shows that schooling accounts for a factor of 5 of the income difference between the U.S. and the poorest countries. The evidence suggests that immigrants to the U.S. are positively selected members of their source country, and that immigrants from developing countries are more selected than those from developed countries. Then the low education quality measured in the sample actually overestimates the education quality of the average non-migrant, particularly for developing countries. Two methods of controlling for selection among immigrants thus predict a moderately larger role for schooling, between a factor of 6.5 and 7.9.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 9243.

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Date of creation: May 2008
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Handle: RePEc:pra:mprapa:9243

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  1. Peter J. Klenow & Mark Bils, 2000. "Does Schooling Cause Growth?," American Economic Review, American Economic Association, vol. 90(5), pages 1160-1183, December.
  2. Marla, Ripoll & Juan, Cordoba, 2006. "The Role of Education in Development," MPRA Paper 1864, University Library of Munich, Germany, revised Feb 2007.
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Cited by:
  1. Lutz Hendricks, 2010. "Cross-country variation in educational attainment: structural change or within-industry skill upgrading?," Journal of Economic Growth, Springer, vol. 15(3), pages 205-233, September.
  2. Tamura, Robert & Dwyer, Gerald P. & Devereux, John & Baier, Scott, 2012. "Economic growth In the long run," MPRA Paper 41324, University Library of Munich, Germany.
  3. Córdoba, Juan Carlos & Ripoll, Marla, 2013. "What explains schooling differences across countries?," Journal of Monetary Economics, Elsevier, vol. 60(2), pages 184-202.
  4. Tamura, Robert & Simon, Curtis J., 2012. "Secular fertility declines, baby booms and economic growth: international evidence," MPRA Paper 41669, University Library of Munich, Germany.
  5. Ana Hidalgo & Amparo Castelló-Climent, 2010. "Quality and Quantity of Education in the Process of Development," 2010 Meeting Papers 238, Society for Economic Dynamics.
  6. Tamura, Robert & Dwyer, Gerald P & Devereux, John & Baier, Scott, 2012. "Data appendix for economic growth in the long run," MPRA Paper 41325, University Library of Munich, Germany.
  7. Kevin M. Murphy & Curtis J. Simon & Robert Tamura, 2011. "Black and White Fertility, Differential Baby Booms: The Value of Civil Rights (Equal Opportunity for Education)," 2011 Meeting Papers 238, Society for Economic Dynamics.

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