Kiel Working Papers, Kiel Institute for World Economics
No 926:
The Decline of Schooling Productivity in OECD Countries
Erich Gundlach, Ludger Wößmann and Jens Gmelin
Abstract: Based on Baumol's cost-disease model, we develop two
alternative measures of the change in the productivity of schooling. Both
productivity measures are based on changes in the relative price of
schooling. We find that in most OECD countries the price of schooling has
increased faster in 1970-94 than would be compatible with constant
schooling productivity. In addition, we show that the average performance
of pupils has remained constant at best in most OECD countries. Our results
imply a larger decline in the productivity of schooling in many OECD
countries than in the United States.
JEL-Codes: I2; (follow links to similar papers)
42 pages, May 1999
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