The Decline of Schooling Productivity in OECD Countries

Posted: 21 Jun 2001

See all articles by Erich Gundlach

Erich Gundlach

University of Hamburg

Ludger Woessmann

Ifo Institute for Economic Research; Institute for the Study of Labor (IZA); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); University of Munich - Ifo Institute for Economic Research

Jens Gmelin

Kreditanstalt für Wiederaufbau (KFW)

Abstract

Based on Baumol's cost-disease model, we develop two alternative measures of the change in the productivity of schooling. Both productivity measures are based on changes in the relative price of schooling. We find that in most OECD countries the price of schooling has increased faster in 1970-94 than would be compatible with constant schooling productivity. In addition, we show that the average performance of pupils has remained constant at best in most OECD countries. Our results imply a larger decline in the productivity of schooling in many OECD countries than in the United States.

JEL Classification: I2

Suggested Citation

Gundlach, Erich and Woessmann, Ludger and Gmelin, Jens, The Decline of Schooling Productivity in OECD Countries. Economic Journal, Vol. 111, No. 471, May 2001. Available at SSRN: https://ssrn.com/abstract=272548

Erich Gundlach

University of Hamburg ( email )

Department of Economics
Von-Melle-Park 5
Hamburg, 20146
Germany
+49 40 428384589 (Phone)

HOME PAGE: http://www.erichgundlach.de

Ludger Woessmann (Contact Author)

Ifo Institute for Economic Research ( email )

Poschingerstr. 5
Munich
Germany
++49 89 9224 1699 (Phone)
++49 89 9224 1460 (Fax)

HOME PAGE: http://www.cesifo.de/link/woessmann_l.htm

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

University of Munich - Ifo Institute for Economic Research

Schackstr. 4
Munich, 80539
Germany

Jens Gmelin

Kreditanstalt für Wiederaufbau (KFW)

Palmengartenstrasse 5-9
60325 Frankfurt am Main
Germany

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