Full Citation
Title: Measuring and Accounting for Cross-Country Di erences in Education Quality
Citation Type: Working Paper
Publication Year: 2008
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Abstract: This paper measures the role of quality-adjusted education in accounting for cross-country di erences in income per worker. The returns to schooling of immigrants tothe United States are used as a measure of their source-country education quality.Returns are available for 130 countries and vary by up to an order of magnitudebetween developed and developing countries. A model shows why the returns toschooling of immigrants and not other wage statistics are an appropriate measure ofeducation quality. The model is consistent with the relationships between educationquality, average school attainment, and the returns to schooling for immigrants andnon-migrants. Calibrating the model, or augmenting a Bils and Klenow (2000)-styleaccounting exercise to account for education quality, yields large results. Quality-adjusted schooling is found to account for 38-42% of the income di erence betweenthe richest and poorest quintiles of countries, as opposed to the 21-24% in the currentliterature that accounts only for years of schooling.
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Authors: Schoellman, Todd
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Publication Number: 18555
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Publisher Location: Munich, Germany
Data Collections: IPUMS USA
Topics: Education, Labor Force and Occupational Structure, Migration and Immigration
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