Page 4 - Education and Inclusive Growth --Jong-Wha Lee Korea University

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economic growth and income inequality requires controlling for that of other

determinants such as technological progress. It is a challenging task to address
the identification issue, especially in intertemporal, cross-national contexts.
This paper attempts to analyze the exact contribution of education to economic

growth and income inequality after controlling for that of other important
factors. It contributes to the existing literature by using an updated data set
covering a broad range of countries for the period between 1980 and 2015.

The remainder of this paper is organized as follows. Section 2 presents the
estimates of educational attainment across countries and discusses the evolution
of average educational attainment and its distribution for 138 countries over the

sample period. Section 3 assesses the contribution of education to economic
growth based on the growth accounting and regression approaches. Section
4 analyzes the role of educational attainment and its distribution on income

inequality. Section 5 discusses the role of education in preparing current and
future workers for adequate skills in response to rapid technological progress
and evolving demands in the labor market . Section 6 concludes.

Evolution of Educational Attainment and Inequality

For the measure of educational attainment, this study uses the average years
of schooling for the working-age population, constructed by Barro and Lee
(2013, 2015). This dataset is constructed for a large number of countries based
on actual census and survey observations on attainment. Missing observations

are imputed by using enrollment-ratio and population structure data. The latest
dataset provides estimates of educational attainment for the populations, aged

15 and above, of 146 countries at five-year intervals from 1950 to 2010 and
projections from 2015 to 2040. The estimates are disaggregated by gender and