%0 Report
        %A Delgado, Michael S.
%A Henderson, Daniel J.
%A Parmeter, Christopher F.
        %T Does Education Matter for Economic Growth?
        %D 2012
        %8 2012 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 7089
        %U https://www.iza.org/publications/dp7089
        %X Empirical growth regressions typically include mean years of schooling as a proxy for human capital. However, empirical research often finds that the sign and significance of schooling depends on the sample of observations or the specification of the model. We use a nonparametric local-linear regression estimator and a nonparametric variable relevance test to conduct a rigorous and systematic search for significance of mean years of schooling by examining five of the most comprehensive schooling databases. Contrary to a few recent papers that have identified significant nonlinearities between education and growth, our results suggest that mean years of schooling is not a statistically relevant variable in growth regressions. However, we do find evidence (within a cross-sectional framework), that educational achievement, measured by mean test scores, may provide a more reliable measure of human capital than mean years of schooling.
        %K significance testing
%K mean years of schooling
%K human capital
%K irrelevant variables
%K nonparametric