Education quality and development accounting

Todd Schoellman

Research output: Contribution to journalArticle

48 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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