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Productivity and economic output of the education sector

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  • Wulong Gu
  • Ambrose Wong

Abstract

The paper constructs a direct output measure of the education sector for Canada and uses the measure to examine its productivity performance. It makes an explicit quality adjustment of the output of the education sector by proposing and implementing a hedonic approach. The approach represents a practical approach for the quality adjustment in education output and can be applied using the existing data from statistical agencies. The measurement of education output in the paper is predicated on the notion that the output of the education sector represents investment in human capital and it has two variants. The income-based approach measures investment in education as increments in the future stream of earnings arising from education. The cost-based approach measures investment as total expenditures related to education. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Wulong Gu & Ambrose Wong, 2015. "Productivity and economic output of the education sector," Journal of Productivity Analysis, Springer, vol. 43(2), pages 165-182, April.
    • Handle: RePEc:kap:jproda:v:43:y:2015:i:2:p:165-182
    DOI: 10.1007/s11123-014-0414-y
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    References listed on IDEAS

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    6. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    7. Gu, Wulong Wong, Ambrose, 2010. "Estimates of Human Capital in Canada: The Lifetime Income Approach," Economic Analysis (EA) Research Paper Series 2010062e, Statistics Canada, Analytical Studies Branch.
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    9. Dale W. Jorgenson & Barbara M. Fraumeni, 1992. "The Output of the Education Sector," NBER Chapters, in: Output Measurement in the Service Sectors, pages 303-341, National Bureau of Economic Research, Inc.
    10. Serge Coulombe & Jean-François Tremblay, 2004. "Literacy, Human Capital and Growth," Working Papers 0407E, University of Ottawa, Department of Economics.
    11. Barbara M. Fraumeni & Marshall B. Reinsdorf & Brooks B. Robinson & Matthew P. Williams, 2008. "Price and Real Output Measures for the Education Function of Government: Exploratory Estimates for Primary & Secondary Education," NBER Working Papers 14099, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Michael S. Christian, 2017. "Net Investment and Stocks of Human Capital in the United States, 1975-2013," International Productivity Monitor, Centre for the Study of Living Standards, vol. 33, pages 128-149, Fall.
    2. Meeta Dasgupta & Anupama Prashar, 2020. "Does Parental Co-creation Impacts Perceived Value? A Mixed-method Study in Indian Elementary Educational Innovations," Vision, , vol. 24(1), pages 90-100, March.
    3. Nicolas Canry, 2020. "Why and How Should Human Capital be Measured in National Accounts?," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 517-518-5, pages 61-79.
    4. Alvarado, Raquel & Ortiz, Cristian, 2018. "El rol del capital humano en el nivel de ingreso de las provincias de Ecuador," Revista Económica, Centro de Investigaciones Sociales y Económicas, Universidad Nacional de Loja, vol. 4(1), pages 123-132, Enero.
    5. Polcyn, Jan, 2017. "Edukacja jako dobro publiczne - próba kwantyfikacji [Education as a public good – an attempt at quantification]," MPRA Paper 76606, University Library of Munich, Germany, revised 2017.
    6. Shamohammadi, Mehdi & Oh, Dong-hyun, 2019. "Measuring the efficiency changes of private universities of Korea: A two-stage network data envelopment analysis," Technological Forecasting and Social Change, Elsevier, vol. 148(C).

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    More about this item

    Keywords

    Human capital; Education; Productivity; H52; J24;
    All these keywords.

    JEL classification:

    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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