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The Quantity and Quality of Schooling and U.S. Labor Productivity Growth (1870-2000)

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  • Peter Rangazas

    (IUPUI)

Abstract

This paper accounts for the contribution of the quantity and quality of schooling to worker productivity growth in the United States from 1870 to 2000. Schooling investments rose dramatically over the period before leveling off around 1970. Schooling likely caused 30 to 40 percent of the fivefold rise in worker productivity from 1870 to 1970 and produced a "wave pattern" in productivity growth (previously attributed solely to the timing and diffusion of important technological innovations). The results suggest that about 1 percent of the century-long 1.6-percent growth rate in worker productivity is sustainable. (Copyright: Elsevier)

Suggested Citation

  • Peter Rangazas, 2002. "The Quantity and Quality of Schooling and U.S. Labor Productivity Growth (1870-2000)," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 5(4), pages 932-964, October.
    • Handle: RePEc:red:issued:v:5:y:2002:i:4:p:932-964
    DOI: 10.1006/redy.2002.0165
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    Cited by:

    1. Mourmouras, Alexandros & Rangazas, Peter, 2009. "Fiscal Policy And Economic Development," Macroeconomic Dynamics, Cambridge University Press, vol. 13(4), pages 450-476, September.
    2. Ferreira, Pedro Cavalcanti & Delalibera, Bruno Ricardo, 2016. "Economic growth and complementarity between stages of human capital," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 779, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    3. Todd Schoellman & Lutz Hendricks, 2009. "Student Abilities During the Expansion of U.S. Education, 1950-2000," 2009 Meeting Papers 162, Society for Economic Dynamics.
    4. Delalibera, Bruno Ricardo & Ferreira, Pedro Cavalcanti, 2019. "Early childhood education and economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 98(C), pages 82-104.
    5. Sibabrata Das & Alex Mourmouras & Peter Rangazas, 2018. "Wage and Fertility Gaps in Dual Economies," Springer Texts in Business and Economics, in: Economic Growth and Development, edition 2, chapter 7, pages 191-227, Springer.
    6. Matteo Cervellati & Uwe Sunde, 2013. "Life Expectancy, Schooling, and Lifetime Labor Supply: Theory and Evidence Revisited," Econometrica, Econometric Society, vol. 81(5), pages 2055-2086, September.
    7. Salam Abdus & Peter Rangazas, 2011. "Adult Nutrition and Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(4), pages 636-649, October.
    8. Wei-Bin Zhang, 2016. "Impact of Education Subsidies and Taxation on Wealth and Human Capital Accumulation," Eastern European Business and Economics Journal, Eastern European Business and Economics Studies Centre, vol. 2(3), pages 222-247.
    9. Hatsor, Limor, 2012. "Occupational choice: Teacher quality versus teacher quantity," Labour Economics, Elsevier, vol. 19(4), pages 608-623.
    10. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    11. Werner, Katharina & Prettner, Klaus, 2015. "Public education and R&D-based economic growth," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112997, Verein für Socialpolitik / German Economic Association.
    12. M Salehizadeh, 2005. "Foreign Direct Investment Inflows and the US Economy: An Empirical Analysis," Economic Issues Journal Articles, Economic Issues, vol. 10(2), pages 29-50, September.
    13. Cui, Dan & Wei, Xiang & Wu, Dianting & Cui, Nana & Nijkamp, Peter, 2019. "Leisure time and labor productivity: A new economic view rooted from sociological perspective," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-24.
    14. Matthias Cinyabuguma & Bill Lord & Christelle Viauroux, 2012. "Revolution in U.S. Fertility, Schooling and Women's Work, 1875-1940: Assessing Proposed Explanations," UMBC Economics Department Working Papers 12-04, UMBC Department of Economics, revised 30 Aug 2013.
    15. Gilpin, Gregory & Kaganovich, Michael, 2012. "The quantity and quality of teachers: Dynamics of the trade-off," Journal of Public Economics, Elsevier, vol. 96(3), pages 417-429.
    16. You, Hye Mi, 2014. "The contribution of rising school quality to U.S. economic growth," Journal of Monetary Economics, Elsevier, vol. 63(C), pages 95-106.
    17. William Lord & Peter Rangazas, 2006. "Fertility and development: the roles of schooling and family production," Journal of Economic Growth, Springer, vol. 11(3), pages 229-261, September.
    18. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.

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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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