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38 | World Development Report 2018
Education is a basic human right, and it is central to
unlocking human capabilities. It also has tremendous
instrumental value. Education raises human capital,
productivity, incomes, employability, and economic
growth. But its benefits go far beyond these mon-
etary gains: education also makes people healthier
and gives them more control over their lives. And it
generates trust, boosts social capital, and creates insti-
tutions that promote inclusion and shared prosperity.
Education as freedom
Since 1948, education has been recognized as a basic
human right, highlighting its role as a safeguard for
human dignity and a foundation of freedom, justice,
and peace.1 In the language of Amartya Sen’s capabil-
ity approach, education increases both an individual’s
assets and his or her ability to transform them into
well-being—or what has been called the individual’s
“beings and doings” and “capabilities.”2 Education can
have corresponding salutary effects on communities
and societies.
Education expands freedom through many
channels, both raising aspirations and increasing
the potential to reach them. These benefits are both
monetary and nonmonetary for individuals, families,
communities, and society as a whole (table 1.1).
Most people—whether policy makers or parents—
already recognize the great value of education.3
Families around the world make great sacrifices to
keep their children in good schools, and political and
opinion leaders consistently rank education among
their top development priorities. For that reason, this
chapter does not try to review all the evidence on the
benefits of education. But before launching into the
main theme of this Report—the learning crisis and
what to do about it—it is worth surveying briefly
the many ways in which education can contribute
to progress, highlighting that these benefits often
depend on learning, not just schooling.4
Education improves
individual freedoms
Education improves economic opportunities
Education is a powerful tool for raising incomes.
Education makes workers more productive by giving
Schooling, learning, and
the promise of education
1
No one has yet realized the wealth of symp athy, the kindness an d generosity
hidden in the soul of a child. The effort of every true educ ation should b e to
unlock that tre asure.”
EMMA GOLDMAN
In the long run , the best way to reduce inequalities with respect to labor as well as
to increase the average productivit y of the labor force and the overall grow th of
the economy is sure ly to invest in educatio n.”
THOMAS P IKET TY, CAPITAL I N THE TWE NTY-FIRST CEN TURY
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38 | World Development Report 2018

Education is a basic human right, and it is central to

unlocking human capabilities. It also has tremendous

instrumental value. Education raises human capital,

productivity, incomes, employability, and economic

growth. But its benefits go far beyond these mon-

etary gains: education also makes people healthier

and gives them more control over their lives. And it

generates trust, boosts social capital, and creates insti-

tutions that promote inclusion and shared prosperity.

Education as freedom

Since 1948, education has been recognized as a basic

human right, highlighting its role as a safeguard for

human dignity and a foundation of freedom, justice,

and peace. 1 In the language of Amartya Sen’s capabil-

ity approach, education increases both an individual’s

assets and his or her ability to transform them into

well-being—or what has been called the individual’s

“beings and doings” and “capabilities.”^2 Education can

have corresponding salutary effects on communities

and societies.

Education expands freedom through many

channels, both raising aspirations and increasing

the potential to reach them. These benefits are both

monetary and nonmonetary for individuals, families,

communities, and society as a whole (table 1.1).

Most people—whether policy makers or parents—

already recognize the great value of education.^3

Families around the world make great sacrifices to

keep their children in good schools, and political and

opinion leaders consistently rank education among

their top development priorities. For that reason, this

chapter does not try to review all the evidence on the

benefits of education. But before launching into the

main theme of this Report—the learning crisis and

what to do about it—it is worth surveying briefly

the many ways in which education can contribute

to progress, highlighting that these benefits often

depend on learning, not just schooling. 4

Education improves

individual freedoms

Education improves economic opportunities

Education is a powerful tool for raising incomes.

Education makes workers more productive by giving

Schooling, learning, and

the promise of education

“ No one has yet realized the wealth of sympathy, the kindness and generosity

hidden in the soul of a child. The effort of every true education should be to unlock that treasure.”

EMMA GOLDMAN

“ In the long run, the best way to reduce inequalities with respect to labor as well as

to increase the average productivity of the labor force and the overall growth of the economy is surely to invest in education.”

THOMAS PIKETTY, CAPITAL IN THE TWENTY-FIRST CENTURY

Schooling, learning, and the promise of education | 39

less educated workers to lose their jobs, and if they do

they are more likely to find another job. Educated work-

ers are more attached to the firms they work for. They

are also more effective at acquiring and processing

job search information.^8 Research in Finland and the

United States finds that more schooling makes it eas-

ier for unemployed people to find reemployment.^9 In

less developed economies with large informal sectors

and underemployment, education is associated with

greater access to full-time jobs in the formal sector.^10

Education leads to longer lives and

enables better life choices

Education promotes longer, healthier lives. Around

the world, there are strong links among education,

them the skills that allow them to increase their out-

put.^5 Each additional year of schooling typically raises

an individual’s earnings by 8–10 percent, with larger

increases for women (figure 1.1). 6 This is not just

because higher-ability or better-connected people

(who would earn more regardless of their schooling)

receive more education, as proposed by the signaling

model of education. “Natural experiments” from a

wide variety of countries—such as Honduras, Indo-

nesia, the Philippines, the United Kingdom, and the

United States—prove that schooling does drive the

increased earnings (box 1.1). 7

In well-functioning labor markets, education

reduces the likelihood of unemployment. In these

economies, high school graduates are less likely than

Table 1.1 Examples of education’s benefits

Individual/family Community/society Monetary Higher probability of employment Greater productivity Higher earnings Reduced poverty

Higher productivity More rapid economic growth Poverty reduction Long-run development

Nonmonetary Better health Improved education and health of children/family Greater resilience and adaptability More engaged citizenship Better choices Greater life satisfaction

Increased social mobility Better-functioning institutions/service delivery Higher levels of civic engagement Greater social cohesion Reduced negative externalities

Source: WDR 2018 team.

Figure 1.1 More schooling is systematically associated with higher wages

Median percentage increase in wages associated with each additional year of schooling, by country group and gender

Source: WDR 2018 team, using data from Montenegro and Patrinos (2017). Data at http://bit.do/WDR2018-Fig_1-1.

Note: Figure is based on the latest available data, 1992–2012. Regions do not include high-income countries.

0

4

8

12

16

Percent

Female Male

Sub-Saharan Africa

Latin America and the Caribbean

East Asia and Pacific

Middle East and North Africa

South Asia Europe and Central Asia

High-income countries

World

Schooling, learning, and the promise of education | 41

mortality.^28 Improvements in women’s education have

been linked to better health outcomes for their children

in many countries, including Brazil, Nepal, Pakistan,

and Senegal.^29 Parental schooling robustly predicts

higher educational attainment for children, even after

controlling for other factors. And children’s ability

to benefit from education is shaped by their parents’

education. In the United States, each additional year

of a mother’s schooling increases her children’s math

test scores by 0.1 standard deviation and significantly

reduces behavioral problems.^30 In Pakistan, mothers

who have one more year of schooling have children

who spend an additional hour a day studying at home.^31

Education’s benefits are especially apparent in

changing environments. Individuals with stronger

skills can take better advantage of new technologies and

adapt to changing work. Indeed, experts on technolog-

ical change have long argued that the more volatile the

state of technology, the more productive education is.^32

Returns to primary schooling in India increased during

the Green Revolution, with the more educated farmers

adopting and diffusing new technologies.^33 More gen-

erally, globalization and advances in technology are

putting a premium on education and skills—both cog-

nitive and socioemotional (see spotlight 5). New skills

facilitate the adoption of technologies and promote

innovation,^34 with general skills enabling individu-

als to adapt to the economic changes that occur over

their lifetimes.^35 When the North American Free Trade

Agreement (NAFTA) increased labor productivity in

Mexico, the benefits were concentrated among more-

skilled workers in the richer northern states.^36 In gen-

eral, returns to education are higher in economically

free countries with institutions that allow individuals

to adjust to shocks and market forces.^37

Education benefits all of

society

Education builds human capital, which translates

into economic growth. If improvements are faster

among the disadvantaged, the additional growth will

reduce poverty, reduce inequality, and promote social

mobility. Through its effect on civic agency—mean-

ing high levels of political engagement, trust, and

tolerance—education can create the building blocks

for more inclusive institutions.^38 Greater civic agency

can create a political constituency for inclusive insti-

tutions, strengthening the social contract between

the state and its citizens. A more engaged citizenry

can also provide political support for the reforms

needed to realize the promise of education.

independent effect as well: the effects on crime

and fertility, for example, are not contingent only

on income. Schooling reduces most types of crime

committed by adults,^17 as well as crime during late

adolescence.^18 Among 16- and 17-year-olds in the

United Kingdom, school dropouts are three times

more likely to commit crimes than those who have

stayed in school, and this gap remains well into their

early 20s. In Sweden, the United Kingdom, and the

United States, completing high school makes youth

less likely to commit crimes, and education is linked

with lower crime rates elsewhere—such as in Mexico,

where high school dropouts were more caught up in

the violence of the war on drugs. 19

As for fertility, education reduces teen pregnancy

and increases the control that women have over the

size of their families. Schooling reduces teenage

pregnancy indirectly by increasing girls’ aspirations,

empowerment, and agency. In Turkey, primary

school completion induced by a change in compul-

sory schooling laws—allowing research to isolate

the causal effects—reduced teenage fertility by 0.

children per woman. 20 School subsidies reduced teen

pregnancy (and in some cases school dropout) in Bra-

zil, Colombia, Kenya, Malawi, and Peru. 21 More gener-

ally, women with more schooling have lower fertility

rates. In Brazil, increased schooling among young

women explains 40–80 percent of the decline in

the fertility rate that began in the late 1960s. 22 When

school coverage expanded in Nigeria, each additional

year of female schooling reduced fertility by at least

0.26 births per woman.^23 One reason may be that edu-

cated women earn more, making it costlier for them

to leave the labor market. 24 Education also increases

women’s use of contraception, increases their role in

family decisions on fertility, and makes them more

aware of the trade-offs in having children. 25

The benefits of education are long-lasting

Education can eliminate poverty in families. The

incomes of parents and their children are highly

correlated: income inequality persists, and poverty

is transmitted from one generation to the next.^26 But

improving education gives poor children a boost: in the

United States, the children of households that moved

to a (one standard deviation) better neighborhood

had incomes as adults that were more than 10 percent

higher, in part because the move improved learning.^27

Better-educated mothers raise healthier and more

educated children. Women’s education is linked to

many health benefits for their children, from higher

immunization rates to better nutrition to lower

42 | World Development Report 2018

for all children early on, followed by expansion of

high-quality secondary and tertiary opportunities.^46

These cases reinforce the idea that strong founda-

tional skills drive growth early in development, but

also that as countries approach the global technologi-

cal frontier, they need to invest more in higher educa-

tion and in research and development. 47

As education coverage expands, poor people typ-

ically benefit the most at the margin, and so income

inequality should fall.^48 A review of more than 60

studies reveals that greater education coverage is

associated with substantial reductions in the income

gap between households across the income distribu-

tion. Specifically, going from a primary enrollment

rate of 50 to 100 percent is associated with an 8 per-

centage point increase in the share of income going

to households in the poorest decile.^49

Education creates the building blocks for

inclusive institutions

Education strengthens the political development of

nations by promoting the civic engagement of their

populations.^50 People with more education consistently

participate more in political activities than those with

less education: education increases awareness and

understanding of political issues, fosters the socializa-

tion needed for effective political activity, and increases

civic skills.^51 Evidence from a variety of settings shows

that this relationship is causal.^52 In the United States,

getting more education—for example, as a result of pre-

school programs, high school scholarships, or smaller

class sizes—leads people to vote more often (table 1.2).^53

Using changes in compulsory school laws to identify

the causal impact of education confirms these findings

for the United Kingdom and the United States, while

using access to community college or changes in child

labor laws does so for the United States.^54 In Benin,

receiving more education made people more politically

active over their lifetimes. In Nigeria, too, educational

Education promotes economic growth

At the national level, education underpins growth.

Human capital can boost growth in two ways: first,

by improving the capacity to absorb and adapt new

technology, which will affect short- to medium-term

growth, and, second, by catalyzing the technological

advances that drive sustained long-term growth. 39

Widespread basic education may provide a bigger

boost for countries far from the global technological

frontier—a group that includes most low- and middle-

income countries. 40 These countries do not need to

push that frontier out through innovation, but they

do need widespread basic education to absorb and

adapt the technologies that are already available glob-

ally. In countries close to the technological frontier,

mainly high-income countries, higher levels of educa-

tion can boost growth through innovation. 41 Although

data limitations make empirical analysis of this rela-

tionship challenging, many influential studies have

concluded that higher levels of education do drive

more rapid growth. 42 Growth accounting analyses

also suggest that education can explain a significant

share of growth—a share that may be even larger if

unskilled workers are more productive when there

are more skilled workers in an economy. 43

But this statistical evidence is not the only—or

even the most compelling—evidence on the impact of

education on growth. Countries that have sustained

rapid growth over decades have typically shown a

strong public commitment to expanding education,

as well as infrastructure and health.^44 Although the

relationship flows the other way as well—in that

rapid growth allows greater investment in all three

sectors—research on the East Asian miracle coun-

tries in particular flags education and human capital

as factors in their rapid growth.^45 Countries such as

the Republic of Korea reaped the benefits of their

“progressive universalism” approach to education,

in which they ensured high-quality basic education

Table 1.2 More schooling leads to more voting Percent

Graduated from high school Voted Program Control Treatment Control Treatment Perry Preschool experiment 44 65 13 18 “I Have a Dream” scholarships 62 79 32 42 STAR Experiment 85 90 42 47

Source: Sondheimer and Green (2010).

Note: The Perry Preschool experiment was an intensive effort to enroll children from low-income families in preschool in Ypsilanti, Michigan. The “I Have a Dream” scholarships were high school scholarships targeted to fifth-grade students who qualified (because of their family’s poverty status) for free or reduced-price lunch in Lafayette, Colorado. The STAR Experiment assigned some students in kindergarten through grade 3 in Tennessee to smaller class sizes. The measure of voting differs across the studies, but corresponds to a time between 2000 and 2004 when the participants would have already graduated from high school.

44 | World Development Report 2018

the economy and society (box 1.2). Another problem is

that if an education system is managed poorly, it can

promote social “bads” instead of social “goods.” First,

education can deepen cleavages between favored

and disadvantaged groups. Young people from poor,

rural, and otherwise disadvantaged households not

only complete less schooling, but also learn much

Learning and the promise of

education

Education can be a powerful tool for individual and

societal empowerment, but its benefits are not auto-

matic. It is not just that education cannot do it alone,

in that much also has to go right in other sectors of

Box 1.2 Education can’t do it alone

Economics, politics, and society shape the returns to educa-

tion. Education systems do not function in a vacuum; they

are part of broader economic, political, and social institu-

tions. For example, does a society uphold property rights?

If not, entrepreneurs are unlikely to invest in risky new ven-

tures, which cuts into job creation and reduces education’s

returns in the labor market. Are there regulations to pre-

vent fraud? If not, those with education might find it more

profitable to engage in socially unproductive but financially

remunerative activities. Are women restricted from working

outside the home? If so, the economic returns from educa-

tion will be unavailable to them. These are all examples of

how formal or informal institutions influence education’s

returns. In general, reliable institutions that implement the

rule of law, reduce corruption, and protect property rights

are associated with higher returns to human capital. a

Here are several examples of how problems elsewhere

in the economy or society reduce education’s returns:

Low demand for educated labor reduces the return to

skills. Education’s returns depend on the interplay between

demand and supply forces in the labor market. If the

demand for educated labor is low relative to supply, then

the returns to education will be low or declining. b^ In urban

China, the returns to education rose from 4 percent a year

of schooling in 1988 to 10 percent in 2001, with most of the

increase attributable to institutional reforms that increased

the demand for skilled labor. c^ More generally, shifts from

planned to market economies have increased the returns

to human capital. d^ When the investment climate is poor, e

both investment and demand for labor by private firms are

lower, reducing the returns to education. f

Countries can incentivize the wrong things. Many edu-

cated youth in parts of the developing world queue for

jobs in already large public sectors. In several countries,

political candidates compete in terms of their ability to

offer patronage or public employment to their supporters. g

In several North African countries, for example, it was not

uncommon in the past for governments to guarantee public

employment opportunities for all university graduates, and

the public sector remains the employer of a large share

of wage earners. h^ In such situations, individual returns to

education might be high (for those who land public sector

jobs), but the impact of education on growth will be low

because improved cognitive skills are not used in ways that

will increase productivity the most. i

Discriminatory norms distort the benefits of education.

Prevailing norms on ethnic or gender discrimination can

strongly mediate the returns to education for these groups. In

many societies, social norms severely restrict women’s access

to economic opportunities. j^ Two studies found that nearly 90

percent of women in northern India (from the state of Uttar

Pradesh) and Nigeria (of Hausa ethnicity) felt they needed

their husband’s permission to work. But norms vary substan-

tially: in the Ethiopian capital, this share was only 28 percent.k

Such norms do not always operate through open dis-

crimination. Labor market segregation along occupational

and social lines is often covert. Occupational gender seg-

regation is a strong feature of many labor markets across

the world. l^ In Organisation for Economic Co-operation and

Development (OECD) countries, women dominate the ser-

vice sector, whereas men are overrepresented in industry. m

In addition to horizontal segregation, women also face a

“glass ceiling” or “vertical segregation” because they do not

advance in their careers as fast or as far as men. In OECD

countries, just a third of managers were women in 2013, with

small variations across countries. n^ Labor market segregation

may also exist along socioeconomic lines.o^ In the 1960s and

1970s, during a period of rapid economic growth in Chile,

education was significant in determining occupational

attainment for the middle class. For the upper class and the

very poor, education was less important, and intergenera-

tional status inheritance was much more likely. p^ In Jamaica,

a country with a rigid class structure, the massive expansion

of educational opportunities at the secondary level did little

to increase the permeability of social structure.q

The very people who are constrained by social norms

may become complicit in perpetuating them. A study of stu-

dents newly admitted to an elite master’s in business admin-

istration (MBA) program in the United States found that

single women reported lower desired compensation when

they believed their classmates would see their responses.

No such differences were observed for men or for women

(Box continues next page)

Schooling, learning, and the promise of education | 45

less while in school (see part II of this Report). In such

cases, education does little to enhance social mobility.

Second, leaders sometimes abuse education systems

for political ends and in ways that reinforce autocracy

or the social exclusion of certain groups.

Finally, schooling is not the same as learning. Edu-

cation is an imprecise word, and so it must be clearly

defined. Schooling is the time a student spends in

classrooms, whereas learning is the outcome—what

the student takes away from schooling. This distinc-

tion is crucial: around the world, many students learn

little (figure 1.4). To be sure, many students learn

something, even in settings facing huge challenges.

And students enjoy some benefits from education

regardless of whether they are learning. When schools

serve as oases of security in violent areas, or when

participation in schooling keeps adolescent girls from

becoming pregnant, these are real societal benefits.

When graduates can use their degrees to open doors

to employment, that opportunity changes their lives,

even when the degree represents less learning than

it should.

Intuitively, many of education’s benefits depend on

the skills that students develop in school. As workers,

Box 1.2 Education can’t do it alone (continued)

Source: WDR 2018 team. a. World Bank (2011). b. Pritchett (2001). c. Zhang and others (2005). d. Nee and Matthews (1996). e. World Bank (2012). f. Almeida and Carneiro (2005); Besley and Burgess (2004); Botero and others (2004); Djankov and others (2002); Haltiwanger, Scarpetta, and Schweiger (2008); Klapper, Laeven, and Rajan (2004); Micco and Pagés (2007); Petrin and Sivadasan (2006). g. Cammett (2009); Kao (2012); Lust-Okar (2009); Sakai, Jabar, and Dawod (2001). h. Bteddini (2016); Egypt Census, 2006, Egypt Data Portal, Central Agency for Public Mobilizations and Statistics, Cairo, http://egypt.opendatafor africa.org/EGSNS2006/egypt-census-2006; Ghafar (2016). i. Pritchett (2001). j. Chiswick (1988); Goldin and Polachek (1987); McNabb and Psacha- ropoulos (1981); World Bank (2011).

k. World Bank (2011). l. Hegewisch and Hartmann (2014). m. OECD Employment Statistics Database, http://stats.oecd.org. n. OECD Family Database, http://www.oecd.org/els/family/database .htm. o. First described by Blau and Duncan (1967). p. Farrell and Schiefelbein (1985). q. Strudwick and Foster (1991). r. Bursztyn, Fujiwara, and Pallais (2017). s. Jha and Kelleher (2006). t. Granovetter (1995). u. Beaman and Magruder (2012). v. Filmer and Fox (2014). w. Assaad (1997); Barsoum (2004); Brixi, Lust, and Woolcock (2015). x. Munshi (2003).

who were not single, suggesting that single women were

reluctant to signal personality traits, such as ambition, that

they perceived to be undesirable in the marriage market. r

Social norms can operate in much the same way to inhibit

male access to opportunities. Case studies in Australia and

Jamaica suggest that underachievement among boys is

linked to notions of education being a “feminized” realm

that clashes with expectations of “masculine” behavior. s

When getting a job depends on informal institutions,

education is less useful. t^ In Kolkata (formerly Calcutta), India,

45 percent of employees reported that they helped a

friend or relative get a job with their current employer. u

Nearly 60 percent of enterprises surveyed in 14 countries

in Sub-Saharan Africa report that their most recent position

was filled through contacts with “family/friends.” v^ This

finding applies as well to places where labor markets are

segmented by kinship and socioeconomic class.w^ Informal

networks can also be particularly important for certain

subpopulations—for example, among Mexican migrants in

the United States. x

Source: Kaffenberger and Pritchett (2017). Data at http://bit.do/WDR2018-Fig_1-4. Note: Literacy is defined as being able to read a three-sentence passage either “fluently without help” or “well but with a little help.”

Figure 1.4 Learning varies widely across countries; in 6 of the 10 countries assessed, only half or fewer of primary completers can read

Literacy rates at successive education levels, selected countries

No formal education

Some primary

Completed primary

Some secondary

Completed secondary

Some or completed tertiary

0

25

50

75

100

Percent

Highest level of educational attainment

Bangladesh Kenya

Indonesia Ghana India Nigeria Pakistan

Rwanda Tanzania Uganda

Schooling, learning, and the promise of education | 47

such as “Parents love their children” or “Farming is

hard work.” Yet even these highly imperfect mea-

sures of skills have considerable predictive and

explanatory power. If better measures of skills were

available, skills would likely explain even more of the

impacts of education—and the role remaining for the

simple schooling measure (which typically retains

predictive power in these analyses) would be further

diminished.

Finally, learning promotes social mobility. The

research cited earlier on intergenerational social

mobility in the United States also investigated which

educational mechanisms were responsible. One can-

didate is school quality based on inputs, such as school

spending and class size, and these measures did have

some predictive power. But learning outcomes turn

out to be especially important: the test scores of the

community in which a child lives (adjusted for the

income of that community) are among the strongest

predictors of social mobility later in life.^77

The literature on the benefits of learning is still

growing, with much more research needed. But both

common sense and the emerging research literature

make it clear that if investigators care about the ben-

efits of education, they should focus on whether stu-

dents are learning—not just on how well schools are

equipped or even how long students stay in school.

Part II of this Report takes up this issue.

had acquired more schooling but not more literacy—

which was common in these countries—financial

behaviors did not change. Socioemotional skills

matter as well: various measures have been shown

to significantly predict earnings over and above the

effects of schooling and cognitive skills.^74

Learning matters for health, too. Numerous stud-

ies have documented the benefits of girls’ schooling

on outcomes such as lower fertility or better child sur-

vival, but these studies do not typically distinguish

between learning and schooling. There are excep-

tions, however. In Morocco, research showed that

maternal education improved child health through

its effects on the ability of mothers to acquire health

knowledge.^75 Globally, data from 48 developing coun-

tries show that learning is responsible for much of

these gains. Each additional year of female primary

schooling is associated with roughly six fewer deaths

per 1,000 live births, but the effect is about two-thirds

larger in the countries where schooling delivers the

most learning (compared with the least).^76

Even limited measures of skills explain a lot. The

measures used in the studies just noted are often

narrow, capturing only simple numeracy or reading

proficiency. Sometimes, the measures are coarse. For

example, the 48-country study of the relationship

between schooling and health uses as its measure of

literacy whether a woman can read a single sentence

Figure 1.6 Increasing learning would yield major economic benefits

Simulated additional GDP between 2015 and 2090 attributable to increased learning (relative to current GDP), by scenario, selected countries

Source: OECD (2010). Data at http://bit.do/WDR2018-Fig_1-6.

Note: PISA = Programme for International Student Assessment.

0

500

1,

1,

2,

2,

Percent of current GDP

Bring all test takers to a minimum of 400 points on PISA Bring each country average to the Finnish average of 546 points on PISA

MexicoTurkeyGreecePortugal

Italy

Luxembourg

Spain

United States

PolandNorway

Slovak Republic

OECD

HungaryDenmarkGermanyIceland FranceIrelandSwedenAustria Switzerland

Belgium

Czech RepublicUnited Kingdom

Australia New Zealand

Canada Netherlands

Japan Korea, Rep.

Finland

48 | World Development Report 2018

Box 1.3 Comparing attainment across countries and economies—

learning-adjusted years of schooling

A given number of years in school leads to much more

learning in some economies than in others. Because they

do not account for these differences, standard compari-

sons of schooling attainment may be misleading. But how

should they be adjusted to make meaningful comparisons?

One approach is to draw on measures of student learning

that are standardized across different economies to adjust

for quality. International assessments such as the Trends

in International Mathematics and Science Study (TIMSS)

or the Programme for International Student Assessment

(PISA) provide such measures. If one is willing to assume

that the average learning trajectory across economies is

linear—starting at no learning when learners enter school

and growing at a constant rate to grade 8—then the ratio

of scores across two economies would reflect the relative

learning per year in one economy versus the other. For

example, if economy A has twice the score of economy B in

grade 8, then, on average, a year of schooling in economy A

may be considered twice as effective.

Two important facts support the credibility of this

analysis: first, the TIMSS score ratios across economies for

grade 4 are similar to those for grade 8; and second, PISA

scores tend to increase linearly across the grades in which

that test is administered.

What might such an adjustment reveal? An illustration

using TIMSS math scores from 2015 confirms that years of

schooling are indeed very different from learning-adjusted

years, and this difference varies a lot across economies.

Whereas people ages 25–29 in Hong Kong SAR, China, and

the United States have similar average years of schooling

(14 and 13.5, respectively), the number of learning-adjusted

schooling years in the United States is almost two years less

(figure B1.3.1). And whereas young Singaporeans have only

30 percent more schooling than young Jordanians by the

standard measure, the learning-adjusted measure shows

Singapore outpaces Jordan by 109 percent in effective

schooling years.

Source: WDR 2018 team, using data from Barro and Lee (2013) and TIMSS 2015 (Mullis and others 2016). Data at http://bit.do/WDR2018-Fig_B1-3-1.

Note: Years of schooling in Singapore are the same as learning-adjusted years because Singapore, which scored highest on the Trends in International Mathematics and Science Study (TIMSS) mathematics assessment in 2015, serves as the basis for comparison in this illustration. For the purposes of this illustration, data for years of education in the United Kingdom are adjusted using the TIMSS score for England. Note that for all countries and economies, the size of the adjustment will reflect the scale of the metric used to make it.

Figure B1.3.1 There can be a large gap between learning-adjusted and

unadjusted years of schooling

Years of actual and learning-adjusted schooling among young people, ages 25–29, illustrated using TIMSS data

3

0

Korea, Rep. Singapore

Hong Kong SAR, China

United States

Canada

United Kingdom

IsraelJapan Malta HungaryIreland Malaysia Slovenia

Italy Australia Sweden

Russian Federation

Chile Lithuania Kazakhstan New Zealand

Jordan South Africa Botswana Norway Thailand Egypt, Arab Rep.Iran, Islamic Rep.

Saudi Arabia

United Arab Emirates

Bahrain Kuwait Qatar Turkey Morocco

6

9

12

15

Number of years

Actual years Learning-adjusted years

50 | World Development Report 2018

Baird, Sarah Jane, Ephraim Chirwa, Craig McIntosh, and Berk Özler. 2010. “The Short-Term Impacts of a Schooling Conditional Cash Transfer Program on the Sexual Behavior of Young Women.” Health Economics 19 (S1): 55–68. Barro, Robert J. 2001. “Human Capital and Growth.” American Economic Review 91 (2): 12–17. ————. 2013. “Education and Economic Growth.” Annals of Economics and Finance 14 (2): 301–28. Barro, Robert J., and Jong Wha Lee. 2013. “A New Data Set of Educational Attainment in the World, 1950–2010.” Journal of Development Economics 104: 184–98. Barsoum, Ghada F. 2004. “The Employment Crisis of Female Graduates in Egypt: An Ethnographic Account.” Cairo Papers 25 (3). Cairo: American University in Cairo Press. Beaman, Lori, and Jeremy Magruder. 2012. “Who Gets the Job Referral? Evidence from a Social Networks Experi- ment.” American Economic Review 102 (7): 3574–93. Becker, Gary. 1964. Human Capital. New York: Columbia Uni- versity Press. Becker, Sashca O., Francesco Cinnirella, and Ludger Woess- mann. 2013. “Does Women’s Education Affect Fertility? Evidence from Pre-demographic Transition Prussia.” European Review of Economic History 17 (1): 24–44. Bedi, A. S., and N. Gaston. 1999. “Using Variation in School- ing Availability to Estimate Educational Returns for Honduras.” Economics of Education Review 18 (1): 107–16. Belfield, Clive R., Milagros Nores, Steve Barnett, and Law- rence Schweinhart. 2006. “The High/Scope Perry Pre- school Program Cost-Benefit Analysis Using Data from the Age-40 Followup.” Journal of Human Resources 41 (1): 162–90. Besley, Timothy J., and Robin S. L. Burgess. 2004. “Can Labour Regulation Hinder Economic Performance? Evi- dence from India.” Quarterly Journal of Economics 119 (1): 91–134. Blau, Peter M., and Otis Dudley Duncan. 1967. The American Occupational Structure. New York: John Wiley. Blimpo, Moussa P., David K. Evans, and Nathalie Lahire.

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  4. Glewwe (1999).
  5. Oye, Pritchett, and Sandefur (2016).
  6. Chetty and others (2014).

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