Education : Past, Present and Future Global Challenges

Progress in educational development in the world since 1900 has been slow and uneven between countries. Providing basic education for all children in developing countries has been and remains an unmet challenge of governments and international organizations alike. This is in sharp contrast to recent findings in the economics literature on the catalytic role of human capital for economic growth and social development in general. Using a newly constructed matched data set on education and national accounts in the 1950 to 2010 period, this paper estimates the loss of income and equity associated with not having a faster rate of human capital accumulation, using alternative methodologies and specific country examples. Such loss is projected backward (1900-1950) and forward (2010-2050) using plausible assumptions regarding what countries could have done in the past or may do in the future to accelerate human capital formation. The findings suggest that the welfare loss in terms of per capita income conservatively ranges from about 7 to 10 percent. Improved educational attainment is also shown to have an effect in reducing income inequality.

Bibliographic Details

Main Authors:	Psacharopoulos, George, Patrinos, Harry Anthony
Language:	English
Published:	2011-03-01
Subjects:	ACCESS TO CAPITAL, ADULTS, AGRICULTURAL PRODUCTIVITY, AVERAGE LEVEL, BASIC EDUCATION, BENEFITS OF EDUCATION, BUSINESS CYCLES, CAPITAL ACCUMULATION, CAPITAL THEORY, COGNITIVE SKILLS, COGNITIVE TEST, COMPARATIVE ECONOMICS, COMPULSORY EDUCATION, COMPULSORY SCHOOLING, COUNTRY CASE, COUNTRY DATA, COUNTRY INEQUALITY, COUNTRY LEVEL, COUNTRY REGRESSIONS, DATA QUALITY, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPMENT ECONOMICS, DEVELOPMENT GOALS, DEVELOPMENT POLICY, DEVELOPMENT REPORT, DIMINISHING RETURNS, DISEQUILIBRIUM, ECONOMETRICS, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, ECONOMIC HISTORIANS, ECONOMIC HISTORY, ECONOMIC LITERATURE, ECONOMIC PERFORMANCE, ECONOMIC STUDIES, ECONOMIC SURVEYS, ECONOMIC THEORY, ECONOMICS, ECONOMICS LETTERS, ECONOMICS LITERATURE, ECONOMICS OF EDUCATION, EDUCATED POPULATION, EDUCATED WORKERS, EDUCATION ATTAINMENT, EDUCATION DATA, EDUCATION ECONOMICS, EDUCATION EXPENDITURE, EDUCATION FOR ALL, EDUCATION POLICIES, EDUCATION POLICY, EDUCATION STATISTICS, EDUCATIONAL ATTAINMENT, EDUCATIONAL DEVELOPMENT, EDUCATIONAL PERFORMANCE, EDUCATIONAL POLICIES, EDUCATIONAL PROGRESS, EDUCATORS, EFFECTS OF EDUCATION, EMPIRICAL GROWTH LITERATURE, EMPIRICAL LITERATURE, ENROLLMENT RATE, ENROLMENT RATIO, ENROLMENT STATISTICS, ERROR TERM, EXTERNALITY, FORMAL EDUCATION, GDP, GDP PER CAPITA, GENDER INEQUALITY, GLOBAL EDUCATION, GROWTH RATE, GROWTH RATES, GROWTH REGRESSIONS, GROWTH THEORIES, GROWTH THEORY, HIGH GROWTH, HIGHER EDUCATION, HIGHER LITERACY, HOUSEHOLD SURVEYS, HUMAN CAPITAL, HUMAN DEVELOPMENT, HUMAN RIGHTS, ILLITERACY, ILLITERACY RATES, IMPACT OF EDUCATION, INCOME, INCOME DATA, INCOME DISTRIBUTION, INCOME GROWTH, INCOME INEQUALITY, INCREASING RETURNS, INDEPENDENT VARIABLE, INEQUALITY DECLINES, INFERIOR EDUCATION, INTERNATIONAL ORGANIZATIONS, INVESTMENT IN EDUCATION, LABOR FORCE, LEVEL OF EDUCATION, LEVELS OF EDUCATION, LIQUIDITY, LONG-RUN GROWTH, LONG-TERM GROWTH, LOW EDUCATIONAL ATTAINMENT, LOWER LEVEL OF EDUCATION, MACROECONOMICS, MARGINAL COST, MARGINAL RETURNS, MICRO DATA, MONETARY ECONOMICS, MONETARY POLICIES, NATIONAL ACCOUNTS, NATIONAL INCOME, NATIONAL OUTPUT, NON-FORMAL EDUCATION, PER CAPITA INCOME, POLICY RESEARCH, POLITICAL ECONOMY, POOR COUNTRIES, POSITIVE EXTERNALITIES, PRIMARY EDUCATION, PRIMARY ENROLLMENT, PRIMARY SCHOOL, PRIMARY SCHOOL AGE, PRIMARY SCHOOL AGE CHILDREN, PRIMARY SCHOOL ENROLLMENT, PRIMARY SCHOOLING, PRODUCTION FUNCTION, PRODUCTIVITY, PUBLIC EXPENDITURE, PUBLIC GOOD, PUBLIC POLICY, REDUCTION OF ILLITERACY, RETURNS TO EDUCATION, RICH COUNTRIES, SCHOOL ENROLLMENT, SCHOOL ENROLMENT, SCHOOL GRADUATE, SCHOOL YEAR, SCHOOLING, SECONDARY SCHOOL, SECONDARY SCHOOLING, SIGNIFICANT EFFECT, SOCIAL BENEFITS, SOCIAL DEVELOPMENT, SOCIAL LEARNING, SOCIAL WELFARE, STANDARD DEVIATION, TRADE POLICIES, TUITION, UNDERESTIMATES, UNEMPLOYMENT, UNIVERSITIES, UNIVERSITY EDUCATION, UTILITY FUNCTION, VOTERS, WAGES,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110329095336 https://hdl.handle.net/10986/3383
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