Education and the Convergence Hypothesis: Ad¬ditional Cross-Country Evidence

Rati Ram ()
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Rati Ram: Economics Department, Illinois State University, Postal: 100 N University St # 142 Normal IL 61761-4402 USA,, http://www.cob.ilstu.edu/

Economia Internazionale / International Economics, 1991, vol. 44, issue 2-3, 244-253

Abstract: Role of education in the « convergence hypothesis » is explored by specifying a regression function that is quadratic in income, including a measure of average schooling of the labor force, utilizing post-War data through 1985 f or a large cr055-country sample, and entering the income variable in both levies and logarithms. The main conclusion is that conventional, models without the schooling variable provide little support for the hypothesis which predicts that, largely due to transfer and diffusion of technology, income and productivity levels across countries tend to converge over time. If, however, detention variable is included in the specification, income convergence is clearly observed. The parameter estimates also suggest several other substantive and methodological aspects.

Date: 1991
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