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The role of educational quality and quantity in the process of economic development
ARTICLE

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Economics of Education Review Volume 31, Number 4, ISSN 0272-7757 Publisher: Elsevier Ltd

Abstract

We develop a theory of human capital investment to study the effects of school quality on student choices of education, and to understand its effect on economic growth. In a dynamic general equilibrium closed economy, primary education is mandatory but there is an opportunity to continue to secondary education and beyond. High-quality education increases the returns to schooling, and hence the incentives to accumulate human capital. This is caused by two different channels: higher quality makes education accessible to more people (extensive margin), and once individuals decide to participate in higher education, higher-quality increases the investment made per individual (intensive margin). Furthermore, educational quality determines human capital composition and growth. Cross-country data evidence shows that the proposed channels are quantitatively important and that the effect of the quality and quantity of education on growth depends on the stage of development.

Citation

Castelló-Climent, A. & Hidalgo-Cabrillana, A. (2012). The role of educational quality and quantity in the process of economic development. Economics of Education Review, 31(4), 391-409. Elsevier Ltd. Retrieved April 9, 2020 from .

This record was imported from Economics of Education Review on March 1, 2019. Economics of Education Review is a publication of Elsevier.

Full text is availabe on Science Direct: http://dx.doi.org/10.1016/j.econedurev.2011.11.004

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