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A replication of "Education and catch-up in the Industrial Revolution" (American Economic Journal: Macroeconomics, 2011)

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  • Edwards, Jeremy S. S.

Abstract

Although European economic history provides essentially no support for the view that education of the general population has a positive causal effect on economic growth, a recent paper by Becker, Hornung and Woessmann (Education and catch-up in the Industrial Revolution, 2011) claims that such education had a significant impact on Prussian industrialisation. The author shows that the instrumental variable they use to identify the causal effect of education is correlated with variables that influenced industrialisation but were omitted from their regression models. Once this specification error is corrected, the evidence shows that education of the general population had, if anything, a negative causal impact on industrialisation in Prussia.

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  • Edwards, Jeremy S. S., 2017. "A replication of "Education and catch-up in the Industrial Revolution" (American Economic Journal: Macroeconomics, 2011)," Economics Discussion Papers 2017-30, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwedp:201730
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    References listed on IDEAS

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    1. Christopher F Baum & Mark E. Schaffer & Steven Stillman, 2003. "Instrumental variables and GMM: Estimation and testing," Stata Journal, StataCorp LP, vol. 3(1), pages 1-31, March.
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    Cited by:

    1. Edwards, Jeremy, 2017. "Did Protestantism promote economic prosperity via higher human capital?," MPRA Paper 82346, University Library of Munich, Germany.

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    More about this item

    Keywords

    education; industrialization; Prussia; regional effects; invalid instrument;
    All these keywords.

    JEL classification:

    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development
    • N13 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: Pre-1913
    • N63 - Economic History - - Manufacturing and Construction - - - Europe: Pre-1913
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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