2008
DOI: 10.1162/rest.90.1.89
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Education, Growth, and Income Inequality

Abstract: Estimates of the effect of education on GDP (the social return) have been hard to reconcile with micro evidence on the private return to schooling. We present a simple explanation combining two ideas: imperfect substitution and endogenous skill-biased technological progress and use cross-country panel data on inequality and GDP to test these ideas. A one-year increase in the level of education reduces the private return by 2 percentage points, consistent with Katz-Murphy's (1992) elasticity of substitution. We… Show more

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Cited by 54 publications
(43 citation statements)
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“…There are studies of the impact of a region's education on its income (for example, Teulings and van Rens 2003), of income on education (for example, Fernandez and Rogerson 1997), of income on health (for example, Pritchett and Summers 1996), of health on income (for example, Bloom et al 2004), of fertility on income (for example, Ahlburg 1996) and of income on fertility (for example, Strulik and Siddiqui 2002). 3 Many of these studies present careful and compelling evidence on their chosen area of research, but taken as a whole they embody certain limitations.…”
Section: Second Problem: How Is 'Development' To Be Measured?mentioning
confidence: 99%
“…There are studies of the impact of a region's education on its income (for example, Teulings and van Rens 2003), of income on education (for example, Fernandez and Rogerson 1997), of income on health (for example, Pritchett and Summers 1996), of health on income (for example, Bloom et al 2004), of fertility on income (for example, Ahlburg 1996) and of income on fertility (for example, Strulik and Siddiqui 2002). 3 Many of these studies present careful and compelling evidence on their chosen area of research, but taken as a whole they embody certain limitations.…”
Section: Second Problem: How Is 'Development' To Be Measured?mentioning
confidence: 99%
“…Loosely following Teulings and Rens (2008) we briefly outline the link between workers' average human capital and Mincerian wage equations. Let's assume a firm produces output per worker according to the following production function…”
Section: A2 Human Capital Production Function and Mincer Regressionmentioning
confidence: 99%
“…Dalam beberapa penelitian disebutkan bahwa pendidikan merupakan faktor yang memegang peranan penting dalam meningkatkan atau menurunkan disparitas pendapatan. Disparitas pendidikan yang rendah cenderung menghasilakn disparitas pendapatan yang rendah begitu pula sebaliknya jika disparitas pendidikan tinggi maka disparitas pendapatan juga tinggi (Lin: 2007, Teulings & Thijs: 2008, Abdullah: 2011, Hoi & Lee: 2012. Di sisi lain beberapa peneliti juga mengemukakan bahwa pertumbuhan ekonomi merupakan faktor yang tidak kalah penting pengaruhnya terhadap disparitas pendapatan.…”
Section: Pendahuluanunclassified