Page 1 - Education and Inclusive Growth --Jong-Wha Lee Korea University

Education and Inclusive Growth 1

Jong-Wha Lee 2+
Korea University

Abstract

This study investigates empirically how educational attainment has

contributed to economic growth and income distribution, using cross-country
data between 1980 and 2014. The growth accounting exercise shows that an

increase in average years of schooling was a significant factor of economic
growth, contributing to about 0.4% point of per worker GDP growth on
average for the 99 countries. Cross-country panel regressions also confirm
that educational expansion, especially at secondary and tertiary levels, played

a positive role for economic growth. It was also a major driver for improving
distribution of education and income in population: about three additional

years of the average schooling was estimated to contribute to reducing the
income Gini coefficient by 1.3% points on average. Policies promoting good
quality education access to all people are important for inclusive economic
development. Moreover, preparing workers for adequate skills in the rapid

1 Draft prepared for the International Conference on Education and Economic
Development in Taipei, Taiwan on October 5-6, 2018.
2 Correspondence: Asiatic Research Institute and Economics Department, Korea
University, 145 Anam-ro, Seongbuk-gu, Seoul, 02841, Republic of Korea. Tel.: +82-
2-32901600. Fax: +82-2-9234661. E-mail: jongwha@korea.ac.kr.