Correlation between Schooling and Per Capita GDP Growth

Previous studies have found only a modest correlation between mean years of schooling and GDP growth in low- and medium-income countries (LMICs). But the educational content of a given number of school years varies enormously – on average, school leavers in Honduras are over an unconscionable six years behind their age-controlled peers in Singapore in Science and Maths competence. A recent paper from ‘Science’ [1] shows that it is school achievement that is important and in logistic regression accounts for over half of the variance between countries in growth rate, conditional on economic starting point, and the temporal relationships all but exclude reverse causality. Of course, it is possible that there is some other ingredient that causes both school and economic attainment in the high economic growth countries. The CLAHRC WM Director hypothesises that knowledge is not just knowledge – education has a deeper effect on the psyche leading to a more empathetic, altruistic person. As the old quote has it, “education is what is left after all the facts have been forgotten.” Is this hypothesis testable?

— Richard Lilford, CLAHRC WM Director


  1. Hanushek EA, & Woessmann L. Knowledge Capital, Growth, and the East Asian Miracle. Science. 2016; 51 (6271): 344-5.

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