What Level of Education Matters Most for Growth? Evidence from Portugal
Posted: 17 Jul 2008
Date Written: July, 17 2008
We decompose annual average years of schooling series for Portugal into different schooling levels series. By estimating a number of vector autoregressions, we provide measures of aggregate and disaggregate economic growth impacts of different education levels. Increasing education at all levels except tertiary have a positive and significant effect on growth. Investment in education does not significantly crowd out physical investment and average years of schooling semi-elasticities have comparable magnitude across primary and secondary levels.
Keywords: Economic impact, Economic development, Human capital, Productivity
JEL Classification: I21, O47, 052
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