The causal effect of education on aggregate income
30 pages, 1 figure, 5 boxes-- ; Empirical studies assume that the macro Mincer return on schooling is con- stant across countries. Using a large sample of countries this paper shows that countries with a better quality of education have on average relatively higher macro Mincer coeficients. As rich countries have on average better educational quality, differences in human capital between countries are larger than has been typically assumed in the development accounting literature. Consequently, factor accumulation explains a considerably larger share of income differences across countries than what is usually found. ; The support from the Spanish Ministry of Education and Science under project SEJ2005-06357 is gratefully acknowledged. The author acknowledges the support of the Barcelona GSE Research Network and of the Government of Catalonia. ; Peer reviewed