Arnaud Chevalier|Colm Harmon|Ian Walker|Yu Zhu
Does Education Raise Productivity, or Just Reflect it?
University of Kent|London School of Economics and Political Science|Economic Policy Institute|Centre for Economic Policy Research|University College Dublin|Institute for Fiscal Studies|University of Warwick|University of Kent
education important effect wages clear whether education raises productivity education simply signal ability implement number existing tests discriminating two explanations find support signalling hypothesis however severe reservations results propose alternative test based changes education incentives caused changes minimum school leaving age 1970s using idea find uk data appear strongly support human capital explanation