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The Effects of Education Quality on Income Growth and Mortality Decline

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  • Eliot A. Jamison
  • Dean T. Jamison
  • Eric A. Hanushek

Abstract

Previous work shows that higher levels of education quality (as measured by international student achievement tests) increases growth rates of national income. This paper begins by confirming those findings in an analysis involving more countries over more time with additional controls. We then use the panel structure of our data to assess whether the mechanism by which education quality appears to improve per capita income levels is through shifting the level of the production function (probably not), through increasing the impact of an additional year of education (probably not), or through increasing a country's rate of technological progress (very likely). Mortality rates complement income levels as indicators of national well-being and we extend our panel models to show that improved education quality increases the rate of decline in infant mortality. Throughout the analysis, we find a stronger impact of education quality and of years of schooling in open than in closed economies.

Suggested Citation

  • Eliot A. Jamison & Dean T. Jamison & Eric A. Hanushek, 2006. "The Effects of Education Quality on Income Growth and Mortality Decline," NBER Working Papers 12652, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:12652
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    More about this item

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • I2 - Health, Education, and Welfare - - Education
    • J0 - Labor and Demographic Economics - - General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • I1 - Health, Education, and Welfare - - Health

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