Directly unproductive schooling: how country characteristics affect the impact of schooling on growth

Mark Rogers

Research output: Contribution to journalArticle

Abstract

The rapid rise in schooling in developing countries in recent decades has been dramatic. However, many cross-country regression analyses of the impact of schooling on economic growth find low and insignificant coefficients. This empirical 'puzzle' contrasts with theoretical arguments that schooling, through raising human capital, should raise income levels. This paper argues that poor results are to be expected when regression samples include countries that vary greatly in their ability to use schooling productively. Data on corruption, the black market premium on foreign exchange and the extent of the brain drain for developing countries are used as indicators of an economy's productive use of schooling. Regression analysis shows that the impact of secondary schooling on economic growth is substantially higher in countries that are adjudged to use schooling productivity.
Original languageEnglish
Pages (from-to)356–385
Number of pages30
JournalEuropean Economic Review
Volume52
Issue number2
DOIs
Publication statusPublished - Feb 2008

Keywords

  • schooling
  • human capital
  • corruption
  • brain drain
  • economic growth

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