Does trade openness affect educational attainment? Insights from 25 years of research

This study presents the first meta-analysis examining the impact of trade openness on educational attainment, drawing on 889 estimates published between 1999 and 2023 to clarify discrepancies in the literature. Following an exploratory test for publication bias, we identify key sources of heterogeneity: countries’ development levels, the measures used for educational attainment and trade openness, and the treatment of trade endogeneity. Notably, when endogeneity concerns are addressed, trade is found to increase educational attainment in high- and middle-income countries but reduce it in low-income nations. In developed economies, trade raises the wage premium for skilled labor and encourages higher educational attainment, whereas in less-developed countries it generates employment opportunities but raises the opportunity cost of schooling. This synthesis highlights the complex dynamics between trade and education, providing an empirical foundation for future research and policy design.