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The decline of schooling productivity in OECD countries

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  • Gundlach, Erich
  • Wößmann, Ludger
  • Gmelin, Jens

Abstract

Based on Baumol’s cost-disease model, we develop two alternativemeasures of the change in the productivity of schooling. Bothproductivity measures are based on changes in the relative price ofschooling. We find that in most OECD countries the price of schoolinghas increased faster in 1970-94 than would be compatible with constantschooling productivity. In addition, we show that the averageperformance of pupils has remained constant at best in most OECDcountries. Our results imply a larger decline in the productivity ofschooling in many OECD countries than in the United States.

Suggested Citation

  • Gundlach, Erich & Wößmann, Ludger & Gmelin, Jens, 2001. "The decline of schooling productivity in OECD countries," Munich Reprints in Economics 20451, University of Munich, Department of Economics.
  • Handle: RePEc:lmu:muenar:20451
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    References listed on IDEAS

    as
    1. Lee, Jong-Wha & Barro, Robert J, 2001. "Schooling Quality in a Cross-Section of Countries," Economica, London School of Economics and Political Science, vol. 68(272), pages 465-488, November.
    2. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
    3. Eric A. Hanushek, 1998. "Conclusions and controversies about the effectiveness of school resources," Economic Policy Review, Federal Reserve Bank of New York, issue Mar, pages 11-27.
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    JEL classification:

    • I2 - Health, Education, and Welfare - - Education

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