This article examines the long-run effect of higher education, measured in average years of tertiary schooling, on the level and growth rate of national per capita income. It uses an improved dataset on educational attainments which not only reduces measurement error but also overcomes data comparability issues and allows us to estimate the…

"The United States' failure to educate its students leaves them unprepared to compete and threatens the country's ability to thrive in a global economy." Such was the dire warning recently issued by a task force sponsored by the Council on Foreign Relations. Chaired by former New York City schools chancellor Joel I. Klein and former U.S.…