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Microeconomic Approaches to Development: Schooling, Learning, and Growth

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  • Mark R. Rosenzweig

    () (Economic Growth Center, Yale University)

Abstract

I illustrate the variety of approaches to development issues microeconomists employ, focusing on studies that illuminate and quantify the major mechanisms posited by growth theorists who highlight the role of education in fostering growth. I begin with a basic issue: what are the returns to schooling? I discuss microeconomic studies that estimate schooling returns using alternative approaches to estimating wage equations, which require assumptions that are unlikely to be met in low-income countries, looking at inferences based on how education interacts with policy and technological changes in the labor and marriage markets. I then review research addressing whether schooling facilitates learning, or merely imparts knowledge, and whether there is social learning that gives rise to educational externalities. I next examine studies quantifying the responsiveness of educational investments to changes in schooling returns and assess whether and where there exist important barriers to such investments when returns justify their increase.

Suggested Citation

  • Mark R. Rosenzweig, 2010. "Microeconomic Approaches to Development: Schooling, Learning, and Growth," Working Papers 985, Economic Growth Center, Yale University.
  • Handle: RePEc:egc:wpaper:985
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    File URL: http://www.econ.yale.edu/growth_pdf/cdp985.pdf
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    References listed on IDEAS

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    Cited by:

    1. Herrera, Santiago & Badr, Karim, 2011. "Why does the productivity of education vary across individuals in Egypt ? firm size, gender, and access to technology as sources of heterogeneity in returns to education," Policy Research Working Paper Series 5740, The World Bank.
    2. Maertens, Annemie, 2013. "Social Norms and Aspirations: Age of Marriage and Education in Rural India," World Development, Elsevier, vol. 47(C), pages 1-15.
    3. Etkes Haggay, 2012. "The Impact of Employment in Israel on the Palestinian Labor Force," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 18(2), pages 1-36, August.
    4. Schwalje, Wes, 2011. "Knowledge-based Economic Development as a Unifying Vision in a Post-awakening Arab World," MPRA Paper 30305, University Library of Munich, Germany.
    5. repec:spr:ssefpa:v:10:y:2018:i:2:d:10.1007_s12571-018-0772-9 is not listed on IDEAS
    6. Luis Arturo Rosado & Germán Castaño Duque, 2015. "Revisión del estado del arte de la Relación entre educación y desarrollo económico," REVISTA DE ECONOMÍA DEL CARIBE 014788, UNIVERSIDAD DEL NORTE.
    7. Yamauchi, Futoshi, 2015. "Wage dynamics, turnover, and human capital : evidence from adolescent transition from school to work in the Philippines," Policy Research Working Paper Series 7184, The World Bank.
    8. Christoph Eder, 2014. "Displacement and education of the next generation: evidence from Bosnia and Herzegovina," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-24, December.
    9. Robert Jensen, 2012. "Do Labor Market Opportunities Affect Young Women's Work and Family Decisions? Experimental Evidence from India," The Quarterly Journal of Economics, Oxford University Press, vol. 127(2), pages 753-792.
    10. Brooks, Karen & Zorya, Sergiy & Gautam, Amy & Goyal, Aparajita, 2013. "Agriculture as a sector of opportunity for young people in Africa," Policy Research Working Paper Series 6473, The World Bank.
    11. Diego Azqueta Oyarzun & Guillermina Gavaldon, 2014. "The economic assessment of education: Social Efficiency or Social Reconstruction?," Investigaciones de Economía de la Educación volume 9,in: Adela García Aracil & Isabel Neira Gómez (ed.), Investigaciones de Economía de la Educación 9, edition 1, volume 9, chapter 51, pages 969-978 Asociación de Economía de la Educación.
    12. Schwalje, Wes, 2011. "A Conceptual Model of National Skills Formation for Knowledge-based Economic Development," MPRA Paper 30302, University Library of Munich, Germany.
    13. Charles Kenny, 2010. "Learning about Schools in Development," Working Papers id:3386, eSocialSciences.
    14. Etkes, Haggay, 2011. "The impact of employment in Israel on the Palestinian labor force (2005–08)," MPRA Paper 34681, University Library of Munich, Germany.
    15. Tesfamicheal Wossen & Thomas Berger & Salvatore Di Falco, 2015. "Social capital, risk preference and adoption of improved farm land management practices in Ethiopia," Agricultural Economics, International Association of Agricultural Economists, vol. 46(1), pages 81-97, January.
    16. Arusha Cooray & Sushanta Mallick, 2011. "What explains cross-country growth in South Asia? Female education and the growth effect of international openness," Global Development Institute Working Paper Series 14511, GDI, The University of Manchester.
    17. Schwalje, Wes, 2012. "Rethinking How Establishment Skills Surveys Can More Effectively Identify Workforce Skills Gaps," MPRA Paper 37192, University Library of Munich, Germany.
    18. Kondylis, Florence & Mueller, Valerie, 2012. "Seeing is Believing? Evidence from a Demonstration Plot Experiment in Mozambique:," MSSP working papers 1, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    schooling; development; growth;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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