The Contribution of Schooling in Development Accounting: Results from a Nonparametric Upper Bound

Antonio Ciccone and Francesco Caselli

No 8683, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: How much would output increase if underdeveloped economies were to increase their levels of schooling? We contribute to the development accounting literature by describing a non-parametric upper bound on the increase in output that can be generated by more schooling. The advantage of our approach is that the upper bound is valid for any number of schooling levels with arbitrary patterns of substitution/complementarity. Another advantage is that the upper bound is robust to certain forms of endogenous technology response to changes in schooling. We also quantify the upper bound for all economies with the necessary data, compare our results with the standard development accounting approach, and provide an update on the results using the standard approach for a large sample of countries.

Keywords: Development accounting; Imperfect substitution; Schooling (search for similar items in EconPapers)
JEL-codes: I25 O11 (search for similar items in EconPapers)
Date: 2011-12
New Economics Papers: this item is included in nep-dev
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Related works:
Working Paper: The Contribution of Schooling in Development Accounting: Results from a Nonparametric Upper Bound (2015)
Journal Article: The contribution of schooling in development accounting: Results from a nonparametric upper bound (2013)
Working Paper: The contribution of schooling in development accounting: results from a nonparametric upper bound (2013)
Working Paper: The Contribution of Schooling in Development Accounting: Results from a Nonparametric Upper Bound (2011)
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