Does education matter for economic growth?
Delgado, Michael S. ; Henderson, Daniel J. ; Parmeter, Christopher F.
Institute of Labor Economics, Bonn
IZA - Bonn
2012
27 p.
economic growth ; education ; human capital ; international
Discussion Paper
7089
Education and training
English
Bibliogr.
"Empirical growth regressions typically include mean years of schooling as a proxy for human capital. However, empirical research often finds that the sign and significance of schooling depends on the sample of observations or the specification of the model. We use a nonparametric local-linear regression estimator and a nonparametric variable relevance test to conduct a rigorous and systematic search for significance of mean years of schooling by examining five of the most comprehensive schooling databases. Contrary to a few recent papers that have identified significant nonlinearities between education and growth, our results suggest that mean years of schooling is not a statistically relevant variable in growth regressions. However, we do find evidence (within a cross-sectional framework), that educational achievement, measured by mean test scores, may provide a more reliable measure of human capital than mean years of schooling. "
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