Education Quality and Economic Growth: A New International Measure of Quality of Education

Musibau, Hammed and Vespignani, Joaquin and Yanotti, Maria Belen (2024): Education Quality and Economic Growth: A New International Measure of Quality of Education.

Abstract

This paper explores the impact of education quality on economic growth in 37 OECD countries. We developed a new dataset that combines mixed-frequency data, including low-frequency data (every three years) from the Programme for International Student Assessment (PISA) and annual data from the World Development Indicators (WDI), covering the period from 2000 to 2018. Our study investigates the relationship between education quality and economic growth. We found that a 1% increase in educational quality contributes to an annual economic growth rate of 2.8%. This result is significantly higher than previous research, which, based on cross-sectional PISA data, reported growth rates ranging from 0.4% to 2.3%.

• Item Type: MPRA Paper
• Language: English
• Keywords: economic growth, education , PISA data
• Subjects: E - Macroeconomics and Monetary Economics > E0 - General > E00 - General; I - Health, Education, and Welfare > I2 - Education and Research Institutions; O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity

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