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Schooling, Cognitive Skills, and the Latin American Growth Puzzle

  • Eric A. Hanushek
  • Ludger Woessmann

Economic development in Latin America has trailed most other world regions over the past four decades despite its relatively high initial development and school attainment levels. This puzzle can be resolved by considering the actual learning as expressed in tests of cognitive skills, on which Latin American countries consistently perform at the bottom. In growth models estimated across world regions, these low levels of cognitive skills can account for the poor growth performance of Latin America. Given the limitations of worldwide tests in discriminating performance at low levels, we also introduce measures from two regional tests designed to measure performance for all Latin American countries with internationally comparable income data. Our growth analysis using these data confirms the significant effects of cognitive skills on intra-regional variations. Splicing the new regional tests into the worldwide tests, we also confirm this effect in extended worldwide regressions, although it appears somewhat smaller in the regional Latin American data than in the worldwide data.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15066.

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Date of creation: Jun 2009
Date of revision:
Publication status: published as S c h o o l i n g , E d u c a t i o n a l A c h i e v e m e n t , a n d t h e L a t i n A m e r i c a n G r o w t h P u z z l e ( w i t h L u d g e r W o e s s m a n n ) . J o u r n a l o f D e v e l o p m e n t E c o n o m i c s , 9 9 ( 2 ) , N o v e m b e r 2 0 1 2 , p p . 4 9 7 - 5 1 2 .
Handle: RePEc:nbr:nberwo:15066
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  9. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
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  11. Hanushek, Eric A., 2002. "Publicly provided education," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 4, chapter 30, pages 2045-2141 Elsevier.
  12. Jess Benhabib & Mark M. Spiegel, 2002. "Human capital and technology diffusion," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
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