Does one size fit all? The impact of cognitive skills on economic growth

Nadir Altinok () and Abdurrahman Aydemir
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Nadir Altinok: IREDU - Institut de Recherche sur l'Education : Sociologie et Economie de l'Education [Dijon] - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE], BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique

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Abstract: This paper tests for heterogeneous effects of cognitive skills on economic growth across countries. Using a new extended dataset on cognitive skills and controlling for potential endogeneity, we find that the magnitude of the effect is about 60 per cent higher for low-income countries compared to high-income countries, and it more than doubles when low TFP countries are compared to high TFP countries. There are also marked differences across ge- ographic regions. Using data on the share of the population with advanced and minimum skill levels, our results also indicate that high-income countries should focus on increasing the number of high skilled human capital, while countries from Sub-Saharan Africa would benefit more by investing in the development of basic skills.

Keywords: Education; Development; Africa; Cognitive skills; Growth; Heterogeneity (search for similar items in EconPapers)
Date: 2017
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01671740v1
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Citations: View citations in EconPapers (7)

Published in Journal of Macroeconomics, 2017, 53, pp.176-190. ⟨10.1016/j.jmacro.2017.06.007⟩

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Related works:
Journal Article: Does one size fit all? The impact of cognitive skills on economic growth (2017)
Working Paper: Does one size fit all? The impact of cognitive skills on economic growth (2017)
Working Paper: Does one size fit all? The impact of cognitive skills on economic growth (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-01671740

DOI: 10.1016/j.jmacro.2017.06.007

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