A new GLO Discussion Paper documents that education can generate important externalities that contribute towards economic growth and convergence.
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GLO Discussion Paper No. 706, 2020
What drives social returns to education? A meta-analysis – Download PDF
by Cui, Ying & Martins, Pedro S.
GLO Fellow Pedro Martins
Author Abstract: Education can generate important externalities that contribute towards economic growth and convergence. In this paper, we study the drivers of such externalities by conducting the first meta-analysis of the social returns to education literature. We analyse over 1,000 estimates from 31 articles published since 1993 that cover 15 countries. Our results indicate that: 1) spillovers slow down with economic development; 2) tertiary schooling and schooling dispersion increase spillovers; 3) spillovers are smaller under fixed-effects and IV estimators but larger when measured at the firm level; and 4) there is publication bias (but not citation bias).
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