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CEP discussion paper
A Note on Schooling in Development Accounting
Francesco Caselli and Antonio Ciccone
December 2011
Paper No' CEPDP1102:
Full Paper (pdf)

JEL Classification: I28; J24

Tags: schooling; production; efficiency; human capital; development accounting; growth accounting

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 nonparametric 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. 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.