Measurement Error in Education and Growth Regressions

Arbeitspapier

The perpetual inventory method used for the construction of education data per country leads to systematic measurement error. This paper analyses the effect of this measurement error on GDP regressions. There is a systematic difference in the education level between census data and observations constructed from enrolment data. We discuss a methodology for correcting the measurement error. The standard attenuation bias suggests that using these corrected data would lead to a higher coefficient. Our regressions reveal the opposite. We discuss why the measurement error yields an overestimation. Our analysis contributes to an explanation of the difference between regressions based on 5 and on 10 year first-differences.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Tinbergen Institute Discussion Paper ; No. 04-040/3

Classification and Topics

• Classification: Wirtschaft
• Subject: growth ; education ; measurement error ; Bildung ; Bildungsniveau ; Messung ; Statistischer Fehler

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Portela, Miguel ; Alessie, Rob ; Teulings, Coen N.
• Event: Veröffentlichung
• (who): Tinbergen Institute
• (where): Amsterdam and Rotterdam
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/86223
• Last update: 2025-03-10T11:44:36+0100