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Does learning to add up add up? The returns to schooling in aggregate data

The theoretical, conceptual, and practical difficulties with the use of cross national data on schooling are so large it is reasonable to avoid using this type of aggregate data for any purpose for which individual level data would do. There are, however, three questions for which the use of cross n...

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Bibliographic Details
Main Author: Lant Pritchett
Format: Printed Book
Published: BREAD Working Paper No. 053 2004
Online Access:http://10.26.1.76/ks/001106.pdf
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100 |a Lant Pritchett 
245 |a Does learning to add up add up? The returns to schooling in aggregate data 
260 |c 2004 
260 |b BREAD Working Paper No. 053 
520 |a The theoretical, conceptual, and practical difficulties with the use of cross national data on schooling are so large it is reasonable to avoid using this type of aggregate data for any purpose for which individual level data would do. There are, however, three questions for which the use of cross national data on schooling is necessary and could potentially help answer interesting questions. First, explaining the cross national differences in the evolution and dynamics of output growth is an important agenda. Do differences in the evolution and dynamics of schooling help explain the big facts about output growth? Largely, no. Second, the existence and magnitude of output externalities to schooling is an important question with at least normative policy implications, and evidence for externalities requires at least some level of spatial aggregation. Does the cross-national data provide support for output externalities? Largely, no. Third, cross national (or more broadly spatially aggregated) data allows the exploration of the impact on returns to schooling (or in the gap between private and social returns) of differences in economic environments. This last question has been and seems a promising line for future research. 
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