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Learning-Adjusted Years of Schooling (LAYS) : Defining A New Macro Measure of Education

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  • Filmer,Deon P.
  • Rogers,F. Halsey
  • Angrist,Noam
  • Sabarwal,Shwetlena

Abstract

The standard summary metric of education-based human capital used in macro analyses?the average number of years of schooling in a population?is based only on quantity. But ignoring schooling quality turns out to be a major omission. As recent research shows, students in different countries who have completed the same number of years of school often have vastly different learning outcomes. This paper therefore proposes a new summary measure, Learning-Adjusted Years of Schooling (LAYS), that combines quantity and quality of schooling into a single easy-to-understand metric of progress. The cross-country comparisons produced by this measure are robust to different ways of adjusting for learning (for example, by using different international assessments or different summary learning indicators), and the assumptions and implications of LAYS are consistent with other evidence, including other approaches to quality adjustment. The paper argues that (1) LAYS improves on the standard metric, because it is a better predictor of important outcomes, and it improves incentives for policymakers; and (2) its virtues of simplicity and transparency make it a good candidate summary measure of education.

Suggested Citation

  • Filmer,Deon P. & Rogers,F. Halsey & Angrist,Noam & Sabarwal,Shwetlena, 2018. "Learning-Adjusted Years of Schooling (LAYS) : Defining A New Macro Measure of Education," Policy Research Working Paper Series 8591, The World Bank.
  • Handle: RePEc:wbk:wbrwps:8591
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    3. Campbell, Susanna G. & Üngör, Murat, 2020. "Revisiting human capital and aggregate income differences," Economic Modelling, Elsevier, vol. 91(C), pages 43-64.
    4. Pasquini, Alessandra & Rosati, Furio C., 2020. "A Human Capital Index for the Italian Provinces," IZA Discussion Papers 13301, Institute of Labor Economics (IZA).
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    More about this item

    Keywords

    Educational Sciences; Economic Theory&Research; Industrial Economics; Economic Growth; Health Care Services Industry; Education for Development (superceded); Educational Populations; Education For All;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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