Delayed effects of graduate education on increased productivity

Publication type

Journal Article

Author

Publication date

June 1, 2014

Summary:

‘Human Capital Theory’ shows that education is a vital part of improving productivity. This paper investigates effects of tertiary education (post-school education: at universities, higher-education colleges, and similar institutions) on how productive an employee is. A problem with such research is to identify which variable is the cause, and which is the effect. This paper uses time-series regression analysis of World Bank data, on the fraction of a country’s workforce with tertiary education, and productivity. This paper also uses Britain as a case study: the British Household Panel Study shows what happens to a graduate in the years after they leave university. The delayed effects of education on output makes clear that education is a cause (rather than an effect) of improvements in productivity. In conclusion, university-level education is beneficial to economic growth.

Published in

International Journal of Economics

Volume and page numbers

Volume: 1 , p.45 -56

ISSN

2331589

Subjects

Link

http://www.journalofeconomics.org/index.php/site/article/view/53

Notes

Open Access journal

#522468

News

Latest findings, new research

Publications search

Search all research by subject and author

Podcasts

Researchers discuss their findings and what they mean for society

Projects

Background and context, methods and data, aims and outputs

Events

Conferences, seminars and workshops

Survey methodology

Specialist research, practice and study

Taking the long view

ISER's annual report

Themes

Key research themes and areas of interest