Does Education Matter for Economic Growth? |
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Authors: | Michael S Delgado Daniel J Henderson Christopher F Parmeter |
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Institution: | 1. Department of Agricultural Economics, Purdue University, , West Lafayette, IN, 47907‐2056 USA;2. Department of Economics, Finance and Legal Studies, University of Alabama, , Tuscaloosa, AL, 35487‐0224 USA;3. Department of Economics, University of Miami, , Coral Gables, FL, 33124‐6520 USA |
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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. |
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