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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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    1. Pritchett, Lant & Filmer, Deon, 1999. "What education production functions really show: a positive theory of education expenditures," Economics of Education Review, Elsevier, vol. 18(2), pages 223-239, April.
    2. Jong–Wha Lee & Robert J. Barro, 2001. "Schooling Quality in a Cross–Section of Countries," Economica, London School of Economics and Political Science, vol. 68(272), pages 465-488, November.
    3. Eric A. Hanushek & Dongwook Kim, 1995. "Schooling, Labor Force Quality, and Economic Growth," NBER Working Papers 5399, National Bureau of Economic Research, Inc.
    4. James Galbraith, 1999. "The Economic Report of the President: A Review," Challenge, Taylor & Francis Journals, vol. 42(6), pages 112-124, November.
    5. Eric A. Hanushek, 1998. "Conclusions and controversies about the effectiveness of school resources," Economic Policy Review, Federal Reserve Bank of New York, vol. 4(Mar), pages 11-27.
    6. Eric A. Hanushek, 1996. "The Productivity Collapse in Schools," Wallis Working Papers WP8, University of Rochester - Wallis Institute of Political Economy.
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    JEL classification:

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

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