Delayed Effects of Graduate Education on Increased Productivity

John Simister ()
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John Simister: Senior Lecturer, Department of Accounting, Finance & Economics,Manchester Metropolitan University.

Journal of Economic and Financial Studies (JEFS), 2014, vol. 2, issue 2, 55-65

Abstract: Human Capital Theory’ shows that education is a vital part of improving productivity. This paper investigates effects of tertiary education (post-school education: at universities, higher-education colleges, and similar institutions) on how productive an employee is. A problem with such research is to identify which variable is the cause, and which is the effect. This paper uses time-series regression analysis of World Bank data, on the fraction of a country’s workforce with tertiary education, and productivity. This paper also uses Britain as a case study: the British Household Panel Study shows what happens to a graduate in the years after they leave university. The delayed effects of education on output makes clear that education is a cause (rather than an effect) of improvements in productivity. In conclusion, university-level education is beneficial to economic growth.

Keywords: Granger causality; Graduates; Productivity; Tertiary education. (search for similar items in EconPapers)
JEL-codes: H52 I21 J24 (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:lrc:lareco:v:2:y:2014:i:2:p:55-65

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