The Fading Productivity of Schooling in East Asia

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

Abstract

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

Suggested Citation

Gundlach, Erich and Woessmann, Ludger, The Fading Productivity of Schooling in East Asia. Journal of Asian Economics, Vol. 12, 2001. Available at SSRN: https://ssrn.com/abstract=272549

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

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