Education quality and development accounting

Todd Schoellman

    Research output: Contribution to journalArticle

    47 Citations (Scopus)

    Abstract

    This paper measures the role of quality-adjusted years of schooling in accounting for cross-country output per worker differences. While data on years of schooling are readily available, data on education quality are not. I use the returns to schooling of foreign-educated immigrants in the U.S. to measure the education quality of their birth country. Immigrants from developed countries earn higher returns than do immigrants from developing countries. I show how to incorporate this measure of education quality into an otherwise standard development accounting exercise. The main result is that cross-country differences in education quality are roughly as important as cross-country differences in years of schooling in accounting for output per worker differences, raising the total contribution of education from 10% to 20% of output per worker differences.

    Original languageEnglish (US)
    Pages (from-to)388-417
    Number of pages30
    JournalReview of Economic Studies
    Volume79
    Issue number1
    DOIs
    StatePublished - 2012

    Fingerprint

    Education
    Schooling
    Development accounting
    Workers
    Immigrants
    Country differences
    Quality of education
    Returns to schooling
    Developing countries
    Exercise
    Developed countries

    Keywords

    • Development accounting
    • Education quality
    • Human capital

    ASJC Scopus subject areas

    • Economics and Econometrics

    Cite this

    Education quality and development accounting. / Schoellman, Todd.

    In: Review of Economic Studies, Vol. 79, No. 1, 2012, p. 388-417.

    Research output: Contribution to journalArticle

    Schoellman, Todd. / Education quality and development accounting. In: Review of Economic Studies. 2012 ; Vol. 79, No. 1. pp. 388-417.
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