We are grateful for helpful comments from Ken Wolpin and two anonymous referees as well as from Daron Acemoglu, Larry Katz, Gueorgui Kambourov, Burhan Kuruscu, Lutz Hendricks, Richard Rogerson, and seminar participants at several seminars and conferences. Restuccia acknowledges financial support from the Social Sciences and Humanities Research Council of Canada. All remaining errors are our own. Please address corresspondence to: Guillaume Vandenbroucke, Department of Economics, University of Southern California, 3260S, Vermont Ave., KAP 300, Los Angeles, CA 90089. Phone: +1 213 740 2098. Fax: +1 213 740 8543. E-mail: email@example.com.
THE EVOLUTION OF EDUCATION: A MACROECONOMIC ANALYSIS
Article first published online: 17 JUL 2013
© (2013) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association
International Economic Review
Volume 54, Issue 3, pages 915–936, August 2013
How to Cite
RESTUCCIA, D. and VANDENBROUCKE, G. (2013), THE EVOLUTION OF EDUCATION: A MACROECONOMIC ANALYSIS. International Economic Review, 54: 915–936. doi: 10.1111/iere.12022
- Issue published online: 17 JUL 2013
- Article first published online: 17 JUL 2013
- Manuscript Revised: SEP 2012
- Manuscript Received: AUG 2010
- Social Sciences and Humanities Research Council of Canada
Between 1940 and 2000 there was a substantial increase in educational attainment in the United States. What caused this trend? We develop a model of human capital accumulation that features a nondegenerate distribution of educational attainment in the population. We use this framework to assess the quantitative contribution of technological progress and changes in life expectancy in explaining the evolution of educational attainment. The model implies an increase in average years of schooling of 24%, which is the increase observed in the data. We find that technological variables and in particular skill-biased technical change represent the most important factors in accounting for the increase in educational attainment. The strong response of schooling to changes in income is informative about the potential role of educational policy and the impact of other trends affecting lifetime income.