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The decline of schooling productivity in OECD countries

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

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.

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Paper provided by University of Munich, Department of Economics in its series Munich Reprints in Economics with number 20451.

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Date of creation: 2001
Date of revision:
Publication status: Published in Economic Journal 471 111(2001): pp. C135-C147
Handle: RePEc:lmu:muenar:20451
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  1. Lee, J.-W. & Barro, R.J., 1998. "Schooling Quality in a Cross Section of Countries," Papers 659, Harvard - Institute for International Development.
  2. 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.
  3. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
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