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American Economic Review: Vol. 90 No. 5 (December 2000)


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Schooling, Labor-Force Quality, and the Growth of Nations

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Hanushek, Eric A., and Dennis D. Kimko. 2000. "Schooling, Labor-Force Quality, and the Growth of Nations." American Economic Review, 90(5): 1184-1208.

DOI: 10.1257/aer.90.5.1184


Direct measures of labor-force quality from international mathematics and science test scores are strongly related to growth. Indirect specification tests are generally consistent with a causal link: direct spending on schools is unrelated to student performance differences; the estimated growth effects of improved labor-force quality hold when East Asian countries are excluded; and, finally, home-country quality differences of immigrants are directly related to U.S. earnings if the immigrants are educated in their own country but not in the United States. The last estimates of micro productivity effects, however, introduce uncertainty about the magnitude of the growth effects.

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Hanushek, Eric A. (Stanford U and NBER)
Kimko, Dennis D. (Institute for Defense Analyses)

JEL Classifications

O47: Measurement of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
J24: Human Capital; Skills; Occupational Choice; Labor Productivity
O15: Economic Development: Human Resources; Human Development; Income Distribution; Migration

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