Education and Economic Growth

What is the role of education, and especially educational quality, in promoting economic growth? Erik Hanushek has concluded that there is strong evidence that the cognitive skills of the population — rather than mere school attainment — are powerfully related to long-run economic growth. The relationship between skills and growth proves extremely robust in empirical applications.

Eric Hanushek is also well-known for his analysis of the determinants of student achievement. His early analyses documented the inconsistent relationship between school resources and student outcomes. The overall finding was initially very controversial and led to many subsequent studies. Currently, available research leads to the widely accepted conclusion that how money is spent is much more important than how much money is spent. His research related to the high cost and the general ineffectiveness of class size reduction was particularly controversial and entered into a variety of on-going policy debates.

No stranger to CESifo, Mr Hanushek visited CESifo from 13 to 23 March, and will be coming again in September and November. He is both research professor of the Ifo Center for the Economics of Education and Innovation as well as director of the Economics of Education Area of the CESifo Research Network. He has also served on Ifo’s Scientific Advisory Council. His frequent visits to CESifo are aimed at increasing the interaction among researchers in the economics of education on both sides of the Atlantic.

Eric Hanushek is a senior fellow at the Hoover Institution of Stanford University. He received his PhD in economics from MIT and is a distinguished graduate of the United States Air Force Academy.

CESifo Working Papers by Eric Hanushek