Does education matter for economic growth?

Michael S. Delgado, Daniel J. Henderson, Christopher Parmeter

Research output: Contribution to journalArticle

34 Citations (Scopus)

Abstract

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 non-parametric local-linear regression estimator and a non-parametric 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 articles 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.

Original languageEnglish (US)
Pages (from-to)334-359
Number of pages26
JournalOxford Bulletin of Economics and Statistics
Volume76
Issue number3
DOIs
StatePublished - Jan 1 2014

Fingerprint

Economic Growth
economic growth
regression
human capital
Human Capital
education
Regression
empirical research
Local Linear Regression
Linear Estimator
Empirical Research
Regression Estimator
Score Test
evidence
Education
Economic growth
Schooling
Nonlinearity
Specification

ASJC Scopus subject areas

  • Statistics and Probability
  • Social Sciences (miscellaneous)
  • Economics and Econometrics
  • Statistics, Probability and Uncertainty

Cite this

Does education matter for economic growth? / Delgado, Michael S.; Henderson, Daniel J.; Parmeter, Christopher.

In: Oxford Bulletin of Economics and Statistics, Vol. 76, No. 3, 01.01.2014, p. 334-359.

Research output: Contribution to journalArticle

Delgado, Michael S. ; Henderson, Daniel J. ; Parmeter, Christopher. / Does education matter for economic growth?. In: Oxford Bulletin of Economics and Statistics. 2014 ; Vol. 76, No. 3. pp. 334-359.
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