Leibniz University Hannover
Institute for Economic Policy
Koenigsworther Platz 1
Institutional Affiliation: Leibniz University Hannover
Information about this author at RePEc
NBER Working Papers and Publications
|December 2015||Economic Gains for U.S. States from Educational Reform|
with Eric A. Hanushek, Ludger Woessmann: w21770
There is limited existing evidence justifying the economic case for state education policy. Using newly-developed measures of the human capital of each state that allow for internal migration and foreign immigration, we estimate growth regressions that incorporate worker skills. We find that educational achievement strongly predicts economic growth across U.S. states over the past four decades. Based on projections from our growth models, we show the enormous scope for state economic development through improving the quality of schools. While we consider the impact for each state of a range of educational reforms, an improvement that moves each state to the best-performing state would in the aggregate yield a present value of long-run economic gains of over four times current GDP.
|June 2015||Knowledge Capital and Aggregate Income Differences: Development Accounting for U.S. States|
with Eric A. Hanushek, Ludger Woessmann: w21295
Improvement in human capital is often presumed important for state economic development, but little research links better education to state incomes. We develop detailed measures of worker skills in each state that incorporate cognitive skills from state- and country-of-origin achievement tests. These new measures of knowledge capital permit development accounting analyses calibrated with standard production parameters. Differences in knowledge capital account for 20-30 percent of the state variation in per-capita GDP, with roughly even contributions by school attainment and cognitive skills. Similar results emerge from growth accounting analyses. These estimates support school improvement as a strategy for state economic development.
Published: Eric A. Hanushek & Jens Ruhose & Ludger Woessmann, 2017. "Knowledge Capital and Aggregate Income Differences: Development Accounting for US States," American Economic Journal: Macroeconomics, vol 9(4), pages 184-224. citation courtesy of