Schoellman, Todd (2008): Measuring and Accounting for Cross-Country Differences in Education Quality.
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This paper measures the role of quality-adjusted education in accounting for cross- country differences in income per worker. The returns to schooling of immigrants to the United States are used as a measure of their source-country education quality. Returns are available for 130 countries and vary by up to an order of magnitude between developed and developing countries. A model shows why the returns to schooling of immigrants and not other wage statistics are an appropriate measure of education quality. The model is consistent with the relationships between education quality, average school attainment, and the returns to schooling for immigrants and non-migrants. Calibrating the model, or augmenting a Bils and Klenow (2000)-style accounting exercise to account for education quality, yields large results. Quality- adjusted schooling is found to account for 38-42% of the income difference between the richest and poorest quintiles of countries, as opposed to the 21-24% in the current literature that accounts only for years of schooling.
|Item Type:||MPRA Paper|
|Original Title:||Measuring and Accounting for Cross-Country Differences in Education Quality|
|Keywords:||Mincer returns; education quality; growth accounting|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity
|Date Deposited:||12. Nov 2009 09:28|
|Last Modified:||12. Feb 2013 22:45|
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The Causes and Consequences of Cross-Country Differences in Schooling Attainment. (deposited 20. Jun 2008 00:32)
The Causes and Consequences of Cross-Country Differences in Schooling Attainment. (deposited 01. Nov 2009 14:54)
- Measuring and Accounting for Cross-Country Differences in Education Quality. (deposited 12. Nov 2009 09:28) [Currently Displayed]
- The Causes and Consequences of Cross-Country Differences in Schooling Attainment. (deposited 01. Nov 2009 14:54)