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Directly Unproductive Schooling: How Country Characteristics Affect the Impact of Schooling on Growth

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  • Mark Rogers

Abstract

The rapid rise in schooling in developing countries in recent decades has been dramatic. However, many cross-country regression analyses of the impact of schooling on economic growth find low and insignificant coefficients. This empirical `puzzle` contrasts with theoretical arguments that schooling, through raising human capital, should raise income levels. This paper argues that poor resulst are to be expected when regression samples include countries that vary greatly in their ability to use schooling productively. Data on corruption, the black market premium on foreign exchange and the extent of the brain drain for developing countries are used as indicators of an economy`s productive use of schooling. Regression analysis shows that the impact of secondary schooling on economic growth is substantially higher in countries that are adjudged to use schooling productivity.

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  • Mark Rogers, 2003. "Directly Unproductive Schooling: How Country Characteristics Affect the Impact of Schooling on Growth," Economics Series Working Papers 166, University of Oxford, Department of Economics.
  • Handle: RePEc:oxf:wpaper:166
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    Cited by:

    1. Mohamed Jellal & Mohamed, Bouzahzah & Simplice Asongu, 2015. "Institutional Governance, Education and Growth," Working Papers 15/059, African Governance and Development Institute..
    2. Catarina Cardoso & Eric J. Pentecost, 2011. "Human Capital and Spatial Heterogeneity in the Iberian Countries’ Regional Growth and Convergence," Discussion Paper Series 2011_04, Department of Economics, Loughborough University, revised Nov 2011.
    3. Coco, Giuseppe & Lagravinese, Raffaele, 2014. "Cronyism and education performance," Economic Modelling, Elsevier, vol. 38(C), pages 443-450.
    4. Mariya Neycheva, 2016. "Secondary versus higher education for growth: the case of three countries with different human capital’s structure and quality," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(6), pages 2367-2393, November.
    5. Pierre-Richard Agénor, 2012. "Infrastructure, Public Education And Growth With Congestion Costs," Bulletin of Economic Research, Wiley Blackwell, vol. 64(4), pages 449-469, October.
    6. Clemens, Michael A., 2009. "Skill Flow: A Fundamental Reconsideration of Skilled-Worker Mobility and Development," MPRA Paper 19186, University Library of Munich, Germany.
    7. repec:spr:eurase:v:7:y:2017:i:1:d:10.1007_s40822-016-0062-9 is not listed on IDEAS
    8. Jonathon Adams-Kane & Jamus Jerome Lim, 2016. "Institutional Quality Mediates the Effect of Human Capital on Economic Performance," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 426-442, May.
    9. Marconi, G. & de Grip, A., 2014. "Education and growth with learning by doing," ROA Research Memorandum 010, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    10. Mohammad Reza Farzanegan & Marcel Thum, 2017. "Oil Dependency and Quality of Education: New Empirical Evidence," MAGKS Papers on Economics 201745, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    11. Spyridon Boikos, 2013. "Corruption, Public Expenditure, and Human Capital Accumulation," Working Paper series 17_13, Rimini Centre for Economic Analysis.
    12. repec:col:000180:015909 is not listed on IDEAS
    13. Baldauf, Markus & Santos Silva, J.M.C., 2012. "On the use of robust regression in econometrics," Economics Letters, Elsevier, vol. 114(1), pages 124-127.
    14. Farzanegan, Mohammad Reza & Thum, Marcel, 2017. "More oil, less quality of education? New empirical evidence," CEPIE Working Papers 09/17, Technische Universität Dresden, Center of Public and International Economics (CEPIE).
    15. Nihal Bayraktar & Blanca Moreno-Dodson, 2015. "How Can Public Spending Help You Grow? An Empirical Analysis For Developing Countries," Bulletin of Economic Research, Wiley Blackwell, vol. 67(1), pages 30-64, January.
    16. Arbel, Yuval & Bar-El, Ronen & Tobol, Yossi, 2017. "Equal Opportunity through Higher Education: Theory and Evidence on Privilege and Ability," IZA Discussion Papers 10564, Institute for the Study of Labor (IZA).
    17. Asadullah, M. Niaz & Savoia, Antonio & Mahmud, Wahiduddin, 2014. "Paths to Development: Is there a Bangladesh Surprise?," World Development, Elsevier, vol. 62(C), pages 138-154.
    18. Michael Clemens, 2004. "The Long Walk to School: International Education Goals in Historical Perspective," Working Papers 37, Center for Global Development.
    19. Clemens Michael A., 2014. "A Case Against Taxes and Quotas on High-Skill Emigration," Journal of Globalization and Development, De Gruyter, vol. 5(1), pages 1-39, June.
    20. Bayraktar, Nihal & Moreno-Dodson, Blanca, 2010. "How can public spending help you grow? an empirical analysis for developing countries," Policy Research Working Paper Series 5367, The World Bank.
    21. repec:kap:ecopln:v:51:y:2018:i:1:d:10.1007_s10644-016-9194-x is not listed on IDEAS
    22. repec:eee:ecolet:v:156:y:2017:i:c:p:48-52 is not listed on IDEAS
    23. Humna Ahsana & M. Emranul Haque, 2015. "Threshold Effects of Human Capital: Schooling and Economic Growth," Centre for Growth and Business Cycle Research Discussion Paper Series 217, Economics, The Univeristy of Manchester.

    More about this item

    Keywords

    Schooling; human capital; corruption; brain drain; economic growth;

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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