IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/353.html
   My bibliography  Save this paper

A Theory-Based Measure of the Output of the Education Sector

Author

Listed:

Abstract

The paper estimates the output of the Norwegian higher education sector based on a modification of the methodology introduced by Jorgenson and Fraumeni (JF) (1989). JF measure output in the education sector by the increase in the total discounted lifetime income that can be attributed to the education "produced" in a given year. As opposed to JF, our output measure excludes the value of non-market labour activities. We provide a theoretical rationale for this modification of the JF-methodology, which has a great negative impact on the output estimates. Our baseline estimate of value added in the Norwegian higher education sector is still more than 8 times higher than the corresponding figure in the Norwegian National Accounts (NA). Replacing the standard NA figures by our estimate raises the share of higher education in GDP from 1.0 to 7.3 percent.

Suggested Citation

  • Astrid Oline Ervik & Erling Holmøy & Torbjørn Hægeland, 2003. "A Theory-Based Measure of the Output of the Education Sector," Discussion Papers 353, Statistics Norway, Research Department.
    • Handle: RePEc:ssb:dispap:353
    as

    Download full text from publisher

    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp353.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jorgenson, Dale W & Fraumeni, Barbara M, 1992. " Investment in Education and U.S. Economic Growth," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages 51-70, Supplemen.
    2. Sofia Ahlroth & Anders Björklund & Anders Forslund, 1997. "The Output Of The Swedish Education Sector," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 43(1), pages 89-104, March.
    3. Dale W. Jorgenson & Barbara M. Fraumeni, 1992. "The Output of the Education Sector," NBER Chapters, in: Output Measurement in the Service Sectors, pages 303-341, National Bureau of Economic Research, Inc.
    4. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    5. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Laverde, Henry, 2015. "Analysis of human capital by means of a prospective method: A study for Latin America," MPRA Paper 81633, University Library of Munich, Germany, revised Jul 2017.
    2. Carol Corrado & Mary O'Mahony & Lea Samek, 2020. "Measuring education services using lifetime incomes," Economic Statistics Centre of Excellence (ESCoE) Discussion Papers ESCoE DP-2020-02, Economic Statistics Centre of Excellence (ESCoE).
    3. Michael S. Christian, 2014. "Human Capital Accounting in the United States: Context, Measurement, and Application," NBER Chapters, in: Measuring Economic Sustainability and Progress, pages 461-491, National Bureau of Economic Research, Inc.
    4. Gang Liu, 2015. "A stylized satellite account for human capital," Discussion Papers 816, Statistics Norway, Research Department.
    5. Michael S. Christian, 2011. "Human Capital Accounting in the United States: Context, Measurement, and Application," BEA Working Papers 0073, Bureau of Economic Analysis.
    6. Gang Liu, 2014. "Measuring the Stock of Human Capital for International and Intertemporal Comparisons," NBER Chapters, in: Measuring Economic Sustainability and Progress, pages 493-544, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. M. C. Navarro-Perez & J. M. Serrano-Sanz, 2002. "Evaluating Educational Output: An Estimation Method Based on Cross-Section Data," Education Economics, Taylor & Francis Journals, vol. 10(1), pages 71-95.
    2. Giuseppe Folloni & Giorgio Vittadini, 2010. "Human Capital Measurement: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 24(2), pages 248-279, April.
    3. Mary O’Mahony & Philip Stevens, 2009. "Output and productivity growth in the education sector: comparisons for the US and UK," Journal of Productivity Analysis, Springer, vol. 31(3), pages 177-194, June.
    4. Li, Haizheng & Liu, Qinyi & Li, Bo & Fraumeni, Barbara & Zhang, Xiaobei, 2014. "Human capital estimates in China: New panel data 1985–2010," China Economic Review, Elsevier, vol. 30(C), pages 397-418.
    5. Haizheng Li & Barbara M. Fraumeni & Zhiqiang Liu & Xiaojun Wang, 2009. "Human Capital In China," NBER Working Papers 15500, National Bureau of Economic Research, Inc.
    6. Trinh Le & John Gibson & Les Oxley, 2003. "Cost‐ and Income‐based Measures of Human Capital," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 271-307, July.
    7. O’Mahony, Mary & Pastor, José Manuel & Peng, Fei & Serrano, Lorenzo & Hernández, Laura, 2012. "Output growth in the post‐compulsory education sector: the European experience," MPRA Paper 44016, University Library of Munich, Germany.
    8. Kristinn Hermannsson & Patrizio Lecca, 2016. "Human Capital in Economic Development: From Labour Productivity to Macroeconomic Impact," Economic Papers, The Economic Society of Australia, vol. 35(1), pages 24-36, March.
    9. María Arrazola & José de Hevia, 2003. "Evaluación económica de políticas educativas: Una ilustración con la Ley General de la Educación de 1970," Hacienda Pública Española / Review of Public Economics, IEF, vol. 164(1), pages 111-127, march.
    10. Kemptner, Daniel & Tolan, Songül, 2018. "The role of time preferences in educational decision making," Economics of Education Review, Elsevier, vol. 67(C), pages 25-39.
    11. Grossmann, Volker, 2008. "Risky human capital investment, income distribution, and macroeconomic dynamics," Journal of Macroeconomics, Elsevier, vol. 30(1), pages 19-42, March.
    12. Campos, Nauro F. & Jolliffe, Dean, 2003. "After, before and during: returns to education in Hungary (1986-1998)," Economic Systems, Elsevier, vol. 27(4), pages 377-390, December.
    13. Emanuela di Gropello, 2006. "Meeting the Challenges of Secondary Education in Latin America and East Asia : Improving Efficiency and Resource Mobilization," World Bank Publications - Books, The World Bank Group, number 7173, December.
    14. Bas Jacobs, 2013. "Optimal redistributive tax and education policies in general equilibrium," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 20(2), pages 312-337, April.
    15. David Campbell, 2001. "Rates of Return to Schooling and the Quality of Education in England and Wales," Studies in Economics 0115, School of Economics, University of Kent.
    16. Huong Thu Le & Ha Trong Nguyen, 2018. "The evolution of the gender test score gap through seventh grade: new insights from Australia using unconditional quantile regression and decomposition," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 7(1), pages 1-42, December.
    17. Martin Schlotter & Guido Schwerdt & Ludger Woessmann, 2011. "Econometric methods for causal evaluation of education policies and practices: a non-technical guide," Education Economics, Taylor & Francis Journals, vol. 19(2), pages 109-137.
    18. Peydró, José-Luis & Jasova, Martina & Mendicino, Caterina & Panetti, Ettore & Supera, Dominik, 2021. "Monetary Policy, Labor Income Redistribution and the Credit Channel: Evidence from Matched Employer-Employee and Credit Registe," CEPR Discussion Papers 16549, C.E.P.R. Discussion Papers.
    19. Kai Barron & Luis F. Gamboa & Paul Rodríguez-Lesmes, 2019. "Behavioural Response to a Sudden Health Risk: Dengue and Educational Outcomes in Colombia," Journal of Development Studies, Taylor & Francis Journals, vol. 55(4), pages 620-644, April.
    20. María laura Alzúa & Guillermo Cruces & Carolina Lopez, 2016. "Long-Run Effects Of Youth Training Programs: Experimental Evidence From Argentina," Economic Inquiry, Western Economic Association International, vol. 54(4), pages 1839-1859, October.

    More about this item

    Keywords

    Human capital formation; Measurement of the education sector;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:353. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.