How Does Education Quality Affect Economic Growth?

Abstract

In a seminal article, Hanushek and Woessmann explained economic growth as a function of the quality of education. While they did not find evidence of the importance of years of schooling, they argued for the relevance of cognitive skills and a basic literacy ratio for economic growth. However, this result was based on cross-country data limited to 23 observations. In this study, we extended and modified their approach based on the results of PISA (Programme for International Student Assessment) tests to explain the GDP changes over the last 50 years. Using panel data, we considered the possible lag that characterizes this relationship, used statistical methods to address the risk of reversed causality of economic performance affecting the quality of education, and extended the model by the inclusion of other potential growth factors. The results, which also included several robustness checks, confirmed the relevance of earlier education quality as a significant growth factor. Our results suggest the significance of educational skills for GDP growth, which might be treated as a confirmation of the importance of quality primary and secondary education for economic development. We showed that our results are robust to changes in the order of lags and confirmed the validity of the conclusion with the use of specification-robust Bayesian model averaging.

Transformation of Education Policy Strategies and the Management of Virtual Learning Environment During Covid-19

“…The perception of learning in a fully digitalised (networked) knowledge society will be fundamentally different from today's situation in Europe and globally (Goczek et al, 2021;Lv et al, 2017). The development of information and communications technologies (ICTs), together with other socio-economic and demographic changes, not only opens up new learning opportunities, but also leads to the need for new skills and knowledge for work, education, training, self-development, and participation in society (Affouneh et al, 2020;Dhawan, 2020;Donahoe et al, 2019;Mehall, 2020).…”

“…Considering that during the last 10-20 years the generation and order of knowledge has changed substantially (Affouneh et al, 2020;Mehall, 2020), leading not only to new models of communication and work, but also to a new approach to learning, teaching/learning environment and competence needs (Mehall, 2020), it is important to have a clearer understanding of how teaching/ learning environment opportunities may change over the period of the strategic guidelines for reform (2013)(2014)(2015)(2016)(2017)(2018)(2019)(2020)(2021)(2022) in order to better advise education policymakers as Redecker et al (2011). Thus, in order to determine how education and training policies can adequately prepare young people for life in the society of the future and also later for the needs of the market (Goczek et al, 2021), it is necessary to anticipate what competences will be important and how they will be acquired in a learnercentred virtual teaching/learning environment (Huang et al, 2020). From that comes the definition of scientific problem that is related to how the virtual teaching/learning environment modelling dimension is contextualised in the processes of change of Lithuanian education policy as well as economic development and education policymaking while enabling the learning environments for everyone to receive an appropriate learning, adapt to different life situations and use the capabilities in the labour market and business development.…”

The Effect of Age on Personal Income Tax Compliance: A Case of Youth in Malaysia

“…Youth in this age group are still studying at the college or university level. While the demand for student relief at the tertiary level will reduce current tax collection, its negative effect is much welcomed with the knowledge to be received will help an increase in the income of the respective youth in the future (Marquez-Ramos and Mourelle, 2019;Goczek et al, 2021). The effect of age is found to be positive related to education, in fact education has an indirect effect and a positive link with taxpayer compliance (Chan et al, 2000).…”

Inequality of Opportunity in Education and Sustainable Development: The Case of Bangladesh

“…No nation can prosper without education, and there is a positive correlation between education and economic growth (SDG-8). Education is an essential determinant of growth, and quality education has a significant impact on economic development [37]. According to Hanushek and Woessmann [34], a nation's GDP increases by 0.37% with each additional year of schooling.…”