New Evidence on the Role of Cognitive Skill in Economic Development

Eduardo Andrade and Márcio Laurini
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Eduardo Andrade: Insper Institute of Education and Research

No 2010-01, IBMEC RJ Economics Discussion Papers from Economics Research Group, IBMEC Business School - Rio de Janeiro

Abstract: This paper presents new evidence on the role of cognitive skills in promoting economic growth rate. The novelties in this paper are that we use a within country dataset (Brazilian state and municipality levels data) and a new methodology, a nonparametric kernel regression estimation with mixed data. The main findings are the following: (i) there is strong evidence that the cognitive skill explains growth, but its relationship with growth appears to be non-linear, (ii) the quantity of schooling remains significant even after controlling for the quality of schooling, and (iii) there is support to the hypothesis that the effect of the cognitive skill on growth is important in an open environment.

Keywords: Cognitive Skill; Nonparametric Kernel Regression (search for similar items in EconPapers)
Date: 2010-09-01
New Economics Papers: this item is included in nep-dev, nep-hrm and nep-neu
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Journal Article: New evidence on the role of cognitive skill in economic development (2012)
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