Education and economic performance in developed countries: Application in Panel Data Econometrics
- Eisenhower administration
- Eisenhower's mandatory
- Mutually Assured Destruction (M.A.D.)
At the Lisbon Council four years ago, the countries of the European Union highlighted the pessimistic outlook for European growth. Therefore a series of measures were decided upon, which were intended to put the European Union on the path of growth. This Council insists that technology investment and human resources (i.e. education) are essential to restore growth. Thus it seems to be quite interesting to study the effects of education on economic performance. It would be insufficient to study only the impact of education on growth even if it is the largest factor in economic performance, and it should also consider the study of inequality of the labor market and its relationship with education. Mean inequality: this is the inequality of income between agents within a country, and inequalities in unemployment. We thus divide this thesis into two main sections. In the first, there will be a purely theoretical study. We present the various studies, first linking the role of education in explaining growth, and in reducing or increasing inequality between the agents on the labor market. In the second chapter, we will have a purely econometric approach. In fact, we will test a new growth model in panel data, which takes into account education, among other variables. We will only proceed with an econometric model of growth because the models on inequality in the labor market have missing data and measurement errors in great numbers, and are therefore more difficult to test. When testing the impact of education on economic performance, it is important to choose the variables. In effect for the variable 'education, we can choose a variable of quantity or quality. Variable's quality is more difficult to consider, in fact it may be measured in several ways. One can for example measure the quality of system education by the outcomes in international tests of "literacy" (tests in reading, 'writing, mathematics and physics), or the number of students per teacher. Current figures by the teacher will be properly assimilated. It is assumed here the evidence that all teachers are good. For outcomes on international tests, these Annotated Links in the tests is a country where education appears to be effective, including the pupils who correctly have an assimilation course. This country will have a education system of with quality. Yet the variable quality is insufficient, as human capital (Barro and Kimko ) and other factors should be taken into account: such as family background, level of resource for parents, and their level of studies. The variable of quality of the education will have a role that is overestimated. The quality is taken into account not only because of a missing data supplied but because its biased impact. Another variable that can be taken into account is the quality variable measured by the average number of students of-year and their average duration. This variable presented the stock of knowledge from one country to the formation of the original. Tags: European Union, Lisbon Council, European growth, econometric approach, labor market, model of growth, assimilation course, education system.