Cross-country Variation in Educational Attainment: Structural Change or Within Industry Skill Upgrading?

Lutz Hendricks
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Lutz Hendricks: Iowa State University

No 110, 2008 Meeting Papers from Society for Economic Dynamics

Abstract: Educational attainment varies greatly across countries and within countries over time. This paper asks whether the variation in education is primarily due to structural change or to within industry skill upgrading. The main finding is that within industry variation accounts for at least 2/3 of the cross-country and the time series variation in educational attainment. The within industry education gaps are broadly consistent with a model of industry neutral cross-country differences in skilled labor productivity. These results suggest that theories of educational development should focus on skill upgrading within industries rather than structural change.

Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed008:110

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