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EDUCATION QUALITY AND DEVELOPMENT ACCOUNTING: TODD SCHOELLMAN

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This paper measures the role of quality-adjusted years of schooling in accounting for cross-country output per worker differences. While data on years of schooling are readily available, data on education quality are not. I use the returns to schooling of foreign-educated immigrants in the United States to infer the education quality of their birth country. Immigrants from developed countries earn higher returns than do immigrants from developing countries; I provide evidence that this pattern is likely explained by education quality differences and not selection. I show how to incorporate this measure of education quality into an otherwise standard development accounting exercise. The main result is that cross-country differences.

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