What Level of Education Matters Most for Growth? Evidence from Portugal
ISEG Economics Working Paper No. 13/2004/DE/UECE
32 Pages Posted: 7 May 2005
Date Written: November 2004
We decompose an annual average years of schooling series for Portugal into different schooling levels series. By estimating a number of vector autoregressions, we provide measures of aggregate and disaggregate economic growth impacts of different education levels. Increasing education at all levels except tertiary have a significant effect on growth. Investment in education does not significantly crowd out physical investment and average years of schooling semi-elasticities have comparable magnitude across primary and secondary levels.
Keywords: Economic growth, education, human capital, Portugal
JEL Classification: I21, O40, 052
Suggested Citation: Suggested Citation