TY  - RPRT
        AU  - Delgado, Michael S.
AU  - Henderson, Daniel J.
AU  - Parmeter, Christopher F.
        TI  - Does Education Matter for Economic Growth?
        PY  - 2012/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 7089
        UR  - https://www.iza.org/publications/dp7089
        AB  - 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.
        KW  - significance testing
KW  - mean years of schooling
KW  - human capital
KW  - irrelevant variables
KW  - nonparametric
        ER  -