Page 5 - Education and Inclusive Growth --Jong-Wha Lee Korea University

Education and Inclusive Growthc151

five-year age intervals. The data set distinguishes between seven different levels

of education: no formal education, incomplete primary, complete primary, lower
secondary, upper secondary, incomplete tertiary, and complete tertiary. Hence,
the dataset provides the estimates of educational attainment, measured by the

average years of schooling, among the adult population at all educational levels
as well as at the primary, secondary, and tertiary levels.
The average number of years of schooling for the population aged 15–64, S,

is defined as follows:
a a
dur l , a = 15 – 19, n, 60 – 64
(1) S = ∑ ∑ j j j
a
a
where dur is the duration of education level j, corresponding to seven
j
a
different levels of education for five-year age population group a, and l is the
j
fraction of population group a that has attained education level j.
The average years of schooling among the adult population provides an
internationally comparable measure of educational capital stock or human
capital stock owned by an average worker. It assumes that a group of population
with no formal education do not possess any human capital and human capital
stock accumulates proportionally to the duration of schooling.

An alternative measure of human capital stock (h) assumes a Mincerian
log-linear relationship between the number of years of schooling and human

capital, such that
a
θ
l
e dur a a j
.
j
j
(2) h = ∑ ∑ j
a
a
where θ measures the efficiency of a unit of labor from population
j
group a with education level j, relative to that of labor without any schooling.
It indicates the marginal return to an additional year of schooling at level j,
which can be derived from education/wage profiles. Hence, human capital per
worker, h, is measured by the sum of the shares of workers weighted by relative
wage rates across all education levels. If the marginal rate of return to a year of