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2000 (5)

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Education matters : selected essays by Alan B. Krueger
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ISBN: 1840641061 9781840641066 Year: 2000 Publisher: Cheltenham Elgar


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Education for Growth: Why and For Whom?
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Year: 2000 Publisher: Cambridge, Mass. National Bureau of Economic Research

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From Bismarck to Maastricht: The March to European Union and the Labor Compact
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Year: 2000 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Education for Growth : Why and For Whom?
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Year: 2000 Publisher: Cambridge, Mass. National Bureau of Economic Research

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This paper tries to reconcile evidence from the microeconometric and empirical macro growth literatures on the effect of schooling on income and GDP growth. Much microeconometric evidence suggest that education is an important causal determinant of income for individuals within countries. At a national level, however, recent studies have found that increases in educational attainment are unrelated to economic growth. This finding appears to be a spurious result of the extremely high rate of measurement error in first-differenced cross-country education data. After accounting for measurement error, the effect of changes in educational attainment on income growth in cross-country data is at least as great as microeconometric estimates of the rate of return to years of schooling. Another finding of the macro growth literature - that economic growth depends positively on the initial stock of human capital - is shown to result from imposing linearity and constant-coefficient assumptions on the estimates. These restrictions are often rejected by the data, and once either assumption is relaxed the initial level of education has little effect on economic growth for the average country.

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From Bismarck to Maastricht : The March to European Union and the Labor Compact
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Year: 2000 Publisher: Cambridge, Mass. National Bureau of Economic Research

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This paper considers the likely impact that European Union (EU) will have on the labor compact. It is argued that, despite increased economic integration in Europe, countries will still be able to maintain distinct labor practices if they are willing to bear the cost of those practices. The incidence of many social protections probably already falls on workers. In addition, it is argued that imperfect mobility of capital, labor, goods and services will limit the pressure that integration will place on the labor compact. Evidence is presented suggesting that labor mobility among EU countries has not increased after the elimination of remaining restrictions on intra-EU labor mobility in 1993. Moreover, immigration from non-EU countries, which is much larger than intra-EU migration, has declined since 1993. Evidence is also reviewed suggesting that the demand for social protection rises when countries are more open, and therefore subject to more severe external shocks. This finding suggests that increased economic integration and European Monetary Union could lead to greater demand for social protection. The U.S. experience with state workers' compensation insurance programs is offered as an example of enduring differences in labor market protections in highly integrated regional economies with a common currency.

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