May 2004

IZA DP No. 1165: Measurement Error in Education and Growth Regressions

published in: Scandinavian Journal of Economics, 2010, 112(3), 618-639

永续盘存法用于欺诈struction 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 firstdifferences.

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