The Fading Productivity of Schooling in East Asia
Posted: 21 Jun 2001
We estimate changes in the productivity of schooling for six East Asian countries. Our productivity measure is based on changes in the relative price of schooling. A rising price of schooling relative to other labor-intensive service sectors should indicate declining relative schooling productivity. We find that the price of schooling increased by more than the price of other labor-intensive services in 1980-1994. We also find that the cognitive achievement of pupils did not change substantially, which suggests a constant quality of schooling output. Hence we conclude that schooling productivity has declined. The main reason for the fading productivity of schooling in East Asian countries appears to be a strong decline in the pupil-teacher ratio.
JEL Classification: I2
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