TY - JOUR
T1 - The relevance of standard estimates of rates of return to schooling for education policy
T2 - A critical assessment
AU - Glewwe, Paul
PY - 1996/12/1
Y1 - 1996/12/1
N2 - This paper examines the accuracy and usefulness of estimated rates of return to schooling based on the standard human capital model of Becker and Mincer. Regarding accuracy, it investigates whether failure to account for differences in ability and school quality lead to significant biases. Estimates using Ghanaian data confirm this possibility. Even when accurate, estimated rates of return to additional years of schooling may have limited policy implications; more useful for governments are rates of return to investments in school quality. The paper uses data on cognitive skills to estimate rates of return to three types of school quality improvements.
AB - This paper examines the accuracy and usefulness of estimated rates of return to schooling based on the standard human capital model of Becker and Mincer. Regarding accuracy, it investigates whether failure to account for differences in ability and school quality lead to significant biases. Estimates using Ghanaian data confirm this possibility. Even when accurate, estimated rates of return to additional years of schooling may have limited policy implications; more useful for governments are rates of return to investments in school quality. The paper uses data on cognitive skills to estimate rates of return to three types of school quality improvements.
KW - Ghana
KW - I21
KW - Investments in education
KW - J24
KW - O15
KW - Returns to schooling
KW - School quality
UR - http://www.scopus.com/inward/record.url?scp=0000009330&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0000009330&partnerID=8YFLogxK
U2 - 10.1016/S0304-3878(96)00415-4
DO - 10.1016/S0304-3878(96)00415-4
M3 - Article
AN - SCOPUS:0000009330
SN - 0304-3878
VL - 51
SP - 267
EP - 290
JO - Journal of Development of Economics
JF - Journal of Development of Economics
IS - 2
ER -
