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