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The causal effect of education on aggregate income

  • Marcelo Soto

Empirical studies assume that the macro Mincer return on schooling is constant across countries. Using a large sample of countries this paper shows that countries with a better quality of education have on average relatively higher macro Mincer coefficients. As rich countries have on average better educational quality, differences in human capital between countries are larger than has been typically assumed in the development accounting literature. Consequently, factor accumulation explains a considerably larger share of income differences across countries than what is usually found.

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Paper provided by Barcelona Graduate School of Economics in its series Working Papers with number 394.

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Date of creation: Jun 2009
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Handle: RePEc:bge:wpaper:394
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