How much do educational outcomes matter in OECD countries?
Existing growth research provides little explanation for the very large differences in long-run growth performance across OECD countries. We show that cognitive skills can account for growth differences within the OECD, whereas a range of economic institutions and quantitative measures of tertiary education cannot. Under the growth model estimates and plausible projection parameters, school improvements falling within currently observed performance levels yield very large gains. The present value of OECD aggregate gains through 2090 could be as much as 275 trillion, or 13.8\% of the discounted value of future GDP for plausible policy changes. Extensive sensitivity analyses indicate that, while different model frameworks and alternative parameter choices make a difference, the economic impact of improved educational outcomes remains enormous. Interestingly, the quantitative difference between an endogenous and neoclassical model framework - with improved skills affecting the long-run growth rate versus just the steady-state income level - matters less than academic discussions suggest. We close by discussing evidence on which education policy reforms may be able to bring about the simulated improvements in educational outcomes.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||2011|
|Date of revision:|
|Publication status:||Published in Economic Policy 67 26(2011): pp. 427-491|
|Contact details of provider:|| Postal: Ludwigstr. 28, 80539 Munich, Germany|
Web page: http://www.vwl.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ciccone, Antonio & Papaioannou, Elias, 2006.
"Human capital, the structure of production, and growth,"
Working Paper Series
0623, European Central Bank.
- Antonio Ciccone & Elias Papaioannou, 2009. "Human Capital, the Structure of Production, and Growth," The Review of Economics and Statistics, MIT Press, vol. 91(1), pages 66-82, February.
- Ciccone, Antonio & Papaioannou, Elias, 2005. "Human Capital, the Structure of Production, and Growth," CEPR Discussion Papers 5354, C.E.P.R. Discussion Papers.
- Antonio Ciccone & Elias Papaioannou, 2005. "Human Capital, the Structure of Production, and Growth," Working Papers 245, Barcelona Graduate School of Economics.
- Antonio Ciccone & Elias Papaioannou, 2005. "Human capital, the structure of production and growth," Economics Working Papers 902, Department of Economics and Business, Universitat Pompeu Fabra.
- Daniel Cohen & Marcelo Soto, 2001.
"Growth and Human Capital: Good Data, Good Results,"
OECD Development Centre Working Papers
179, OECD Publishing.
- Adele Atkinson & Simon Burgess & Bronwyn Croxson & Paul Gregg, 2004.
"Evaluating the Impact of Performance-related Pay for Teachers in England,"
The Centre for Market and Public Organisation
04/113, Department of Economics, University of Bristol, UK.
- Atkinson, Adele & Burgess, Simon & Croxson, Bronwyn & Gregg, Paul & Propper, Carol & Slater, Helen & Wilson, Deborah, 2009. "Evaluating the impact of performance-related pay for teachers in England," Labour Economics, Elsevier, vol. 16(3), pages 251-261, June.
- Bradley, Steve & Taylor, Jim, 2002. "The Effect of the Quasi-market on the Efficiency-Equity Trade-Off in the Secondary School Sector," Bulletin of Economic Research, Wiley Blackwell, vol. 54(3), pages 295-314, July.
- Serge Coulombe & Jean-François Tremblay, 2004. "Literacy, Human Capital and Growth," Working Papers 0407E, University of Ottawa, Department of Economics.
- Robert J. Barro & Jong-Wha Lee, 2010.
"A New Data Set of Educational Attainment in the World, 1950-2010,"
NBER Working Papers
15902, National Bureau of Economic Research, Inc.
- Barro, Robert J. & Lee, Jong Wha, 2013. "A new data set of educational attainment in the world, 1950–2010," Journal of Development Economics, Elsevier, vol. 104(C), pages 184-198.
- repec:lan:wpaper:971 is not listed on IDEAS
- Cunha, Flavio & Heckman, James J. & Lochner, Lance John & Masterov, Dimitriy V., 2005.
"Interpreting the Evidence on Life Cycle Skill Formation,"
IZA Discussion Papers
1675, Institute for the Study of Labor (IZA).
- Cunha, Flavio & Heckman, James J. & Lochner, Lance, 2006. "Interpreting the Evidence on Life Cycle Skill Formation," Handbook of the Economics of Education, Elsevier.
- Flavio Cunha & James J. Heckman & Lance Lochner & Dimitriy V. Masterov, 2005. "Interpreting the Evidence on Life Cycle Skill Formation," NBER Working Papers 11331, National Bureau of Economic Research, Inc.
- Thomas Dee & Brian Jacob, 2009. "The Impact of No Child Left Behind on Student Achievement," NBER Working Papers 15531, National Bureau of Economic Research, Inc.
- Federico Cingano & Marco Leonardi & Julián Messina & Giovanni Pica, 2009.
"The effect of employment protection legislation and financial market imperfections on investment: Evidence from a firm-level panel of EU countries,"
0914, Banco de España;Working Papers Homepage.
- Federico Cingano & Marco Leonardi & Julián Messina & Giovanni Pica, 2010. "The effects of employment protection legislation and financial market imperfections on investment: evidence from a firm-level panel of EU countries," Economic Policy, CEPR;CES;MSH, vol. 25, pages 117-163, 01.
- Federico Cingano & Marco Leonardi & Julian Messina & Giovanni Pica, 2009. "The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU countries," CSEF Working Papers 227, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Cingano, Federico & Leonardi, Marco & Messina, Julián & Pica, Giovanni, 2009. "The Effect of Employment Protection Legislation and Financial Market Imperfections on Investment: Evidence from a Firm-Level Panel of EU Countries," IZA Discussion Papers 4158, Institute for the Study of Labor (IZA).
- Booker, Kevin & Gilpatric, Scott M. & Gronberg, Timothy & Jansen, Dennis, 2007. "The impact of charter school attendance on student performance," Journal of Public Economics, Elsevier, vol. 91(5-6), pages 849-876, June.
- Atila Abdulkadiroğlu & Joshua D. Angrist & Susan M. Dynarski & Thomas J. Kane & Parag A. Pathak, 2011.
"Accountability and Flexibility in Public Schools: Evidence from Boston's Charters And Pilots,"
The Quarterly Journal of Economics,
Oxford University Press, vol. 126(2), pages 699-748.
- Atila Abdulkadiroglu & Joshua Angrist & Susan Dynarski & Thomas J. Kane & Parag Pathak, 2009. "Accountability and Flexibility in Public Schools: Evidence from Boston's Charters and Pilots," NBER Working Papers 15549, National Bureau of Economic Research, Inc.
- Philippe Aghion & Mathias Dewatripont & Caroline Hoxby & Andreu Mas-Colell & André Sapir, 2010.
"The governance and performance of universities: evidence from Europe and the US,"
CEPR;CES;MSH, vol. 25, pages 7-59, 01.
- Aghion, Philippe & Dewatripont, Mathias & Hoxby, Caroline & Mas-Colell, Andreu & Sapir, Andreu, 2010. "The governance and performance of universities: evidence from Europe and the US," Scholarly Articles 12502061, Harvard University Department of Economics.
- Philippe Aghion & Mathias Dewatripont & Caroline Hoxby & Andreu Mas-Colell & André Sapir, 2010. "The governance and performance of universities: Evidence from Europe and the US," ULB Institutional Repository 2013/167268, ULB -- Universite Libre de Bruxelles.
- Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
- Eric Eide, 2004. "The Teacher Labour Market and Teacher Quality," Oxford Review of Economic Policy, Oxford University Press, vol. 20(2), pages 230-244, Summer.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
When requesting a correction, please mention this item's handle: RePEc:lmu:muenar:20416. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tamilla Benkelberg)
If references are entirely missing, you can add them using this form.