Please use this identifier to cite or link to this item: http://arks.princeton.edu/ark:/88435/dsp011831cj939

 Title: Education for Growth: Why and For Whom? Authors: Krueger, Alan B.Lindahl, Mikael Keywords: educationgrowth Issue Date: 1-Jan-2000 Citation: Journal of Economic Literature, Vol. 39, No. 4, December 2001 Series/Report no.: Working Papers (Princeton University. Industrial Relations Section) ; 429 Abstract: This paper summarizes and tries to reconcile evidence from the microeconometric and empirical macro growth literatures on the effect of schooling on income and GDP growth. Much microeconometric evidence suggests that education is an important causal determinant of income for individuals within countries. At a national level, however, recent studies have found that increases in educational attainment are unrelated to economic growth. This discrepancy appears to be a result of the high rate of measurement error in ﬁrst-differenced cross-country education data. Aﬁer accounting for measurement error, the effect of changes in educational attainment on income growth in cross-country data is at least as great as microeconometric estimates of the rate of return to years of schooling. Another finding of the macro growth literature -- that economic growth depends positively on the initial stock of human capital -- is not robust when the assumption of a constant-coefﬁcient model is relaxed. URI: http://arks.princeton.edu/ark:/88435/dsp011831cj939 Related resource: http://links.jstor.org/sici?sici=0022-0515%28200112%2939%3A4%3C1101%3AEFGWAF%3E2.0.CO%3B2-%23 Appears in Collections: IRS Working Papers

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