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Measurement Error in Education and Growth Regressions

Miguel Portela (), Rob Alessie () and C. N. Teulings ()

No 1165, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: The perpetual inventory method used for the construction of education data per country leads to systematic measurement error. This paper analyses the effect of this measurement error on GDP regressions. There is a systematic difference in the education level between census data and observations constructed from enrolment data. We discuss a methodology for correcting the measurement error. The standard attenuation bias suggests that using these corrected data would lead to a higher coefficient. Our regressions reveal the opposite. We discuss why the measurement error yields an overestimation. Our analysis contributes to an explanation of the difference between regressions based on 5 and on 10 year firstdifferences.

Keywords: education; measurement error; growth (search for similar items in EconPapers)
JEL-codes: I2 O4 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dev, nep-edu and nep-lab
Date: 2004-05
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Published in: Scandinavian Journal of Economics, 2010, 112(3), 618-639

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Related works:
Journal Article: Measurement Error in Education and Growth Regressions* (2010) Downloads
Working Paper: Measurement Error in Education and Growth Regressions (2006) Downloads
Working Paper: Measurement Error in Education and Growth Regressions (2005) Downloads
Working Paper: Measurement Error in Education and Growth Regressions (2004) Downloads
Working Paper: Measurement Error in Education and Growth Regressions (2004) Downloads
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