Measuring human capital

Students around the world are going to school but are not learning - an emerging gap in human capital formation. To understand this gap, we introduce a new dataset measuring learning in 164 countries and territories. The data covers 98 percent of the world's population from 2000 to 2017. The dataset will be publicly available and updated annually by the World Bank. We present several stylized facts in a first application of the data: (a) while enrollment has increased worldwide, learning has stagnated (b) girls outperform boys on learning - a positive gender gap - in contrast to a negative gender gap observed for schooling (c) learning is associated with growth on a global scale (d) associations with growth are heterogenous (e) human capital accounts for up to a third of cross-country income differences - a middle ground in the recent development accounting literature. These stylized facts demonstrate the potential of our data to reveal new insight into the relationship between human capital and economic development

Measuring human capital using global learning data

Human capital—that is, resources associated with the knowledge and skills of individuals—is a critical component of economic development1,2. Learning metrics that are comparable for countries globally are necessary to understand and track the formation of human capital. The increasing use of international achievement tests is an important step in this direction3. However, such tests are administered primarily in developed countries4, limiting our ability to analyse learning patterns in developing countries that may have the most to gain from the formation of human capital. Here we bridge this gap by constructing a globally comparable database of 164 countries from 2000 to 2017. The data represent 98% of the global population and developing economies comprise two-thirds of the included countries. Using this dataset, we show that global progress in learning—a priority Sustainable Development Goal—has been limited, despite increasing enrolment in primary and secondary education. Using an accounting exercise that includes a direct measure of schooling quality, we estimate that the role of human capital in explaining income differences across countries ranges from a fifth to half; this result has an intermediate position in the wide range of estimates provided in earlier papers in the literature5–13. Moreover, we show that average estimates mask considerable heterogeneity associated with income grouping across countries and regions. This heterogeneity highlights the importance of including countries at various stages of economic development when analysing the role of human capital in economic development. Finally, we show that our database provides a measure of human capital that is more closely associated with economic growth than current measures that are included in the Penn world tables version 9.014 and the human development index of the United Nations15

Government responses and COVID-19 deaths : global evidence across multiple pandemic waves

We provide an assessment of the impact of government closure and containment measures on deaths from COVID-19 across sequential waves of the COVID-19 pandemic globally. Daily data was collected on a range of containment and closure policies for 186 countries from January 1, 2020 until March 11th , 2021. These data were combined into an aggregate stringency index (SI) score for each country on each day (range: 0-100). Countries were divided into successive waves via a mathematical algorithm to identify peaks and troughs of disease. Within our period of analysis, 63 countries experienced at least one wave, 40 countries experienced two waves, and 10 countries saw three waves, as defined by our approach. Within each wave, regression was used to assess the relationship between the strength of government stringency and subsequent deaths related to COVID-19 with a number of controls for time and country-specific demographic, health system, and economic characteristics. Across the full period of our analysis and 113 countries, an increase of 10 points on the SI was linked to 6 percentage points (P < 0.001, 95% CI = [5%, 7%]) lower average daily deaths. In the first wave, in countries that ultimately experiences 3 waves of the pandemic to date, ten additional points on the SI resulted in lower average daily deaths by 21 percentage points (P<.001, 95% CI = [8%, 16%]). This effect was sustained in the third wave with reductions in deaths of 28 percentage points (P<.001, 95% CI = [13%, 21%]). Moreover, interaction effects show that government policies were effective in reducing deaths in all waves in all groups of countries. These findings highlight the enduring importance of non-pharmaceutical responses to COVID-19 over time

An Expansion of a Global Data Set on Educational Quality : A Focus on Achievement in Developing Countries

This paper assembles a panel data set that measures cognitive achievement for 128 countries around the world from 1965 to 2010 in 5-year intervals. The data set is constructed from international achievement tests, such as the Programme for International Student Assessment and the Trends in International Mathematics and Science Study, which have become increasingly available since the late 1990s. These international assessments are linked to regional ones, such as the South and Eastern African Consortium for Monitoring of Educational Quality, the Programme d’Analyse des Systemes Educatifs de la Confemen, and the Laboratorio Latinoamericano de Evaluacion de la Calidad de la Educacion, in order to produce one of the first globally comparable data sets on student achievement. In particular, the data set is one of the first to include achievement in developing countries, including 29 African countries and 19 Latin American countries. The paper also provides a first attempt at using the data set to identify causal factors that boost achievement. The results show that key drivers of global achievement are civil rights and economic freedom across all countries, and democracy and economic freedom in a subset of African and Latin American countries

Improving Learning in Low- and Middle-Income Countries

The current challenge of education systems is learning. Across low-income countries (LICs) and lower-middle-income countries (LMCs), 62 % of 10-year-olds could not read at a minimally sufficient level in 2015. This study provides an overview of recent spending on education and its correlation with learning outcomes. We show that the relationship between education spending and learning is historically weak. From 2000 to 2015, LICs and LMCs increased spending on education in primary schools by ~$137 per student, an 80$18 per student per year or $7.6 billion annually, generating$65 in benefits for every $1 spent. The economic logic behind this finding is that the hard and costly work of getting children into primary schools has mostly been accomplished, leaving open the possibility of learning interventions that improve the efficiency of the existing education system at low cost. Our results show that increasing education expenditure by just 6 % could increase learning by 120 % if directed toward these highly cost-effective intervention

A global panel database of pandemic policies (Oxford COVID-19 Government Response Tracker)

COVID-19 has prompted unprecedented government action around the world. We introduce the Oxford COVID-19 Government Response Tracker (OxCGRT), a dataset that addresses the need for continuously updated, readily usable and comparable information on policy measures. From 1 January 2020, the data capture government policies related to closure and containment, health and economic policy for more than 180 countries, plus several countries' subnational jurisdictions. Policy responses are recorded on ordinal or continuous scales for 19 policy areas, capturing variation in degree of response. We present two motivating applications of the data, highlighting patterns in the timing of policy adoption and subsequent policy easing and reimposition, and illustrating how the data can be combined with behavioural and epidemiological indicators. This database enables researchers and policymakers to explore the empirical effects of policy responses on the spread of COVID-19 cases and deaths, as well as on economic and social welfare

The credibility revolution in empirical economics: how better research design is taking the con out of econometrics

Since Edward Leamer's memorable 1983 paper, "Let's Take the Con out of Econometrics," empirical microeconomics has experienced a credibility revolution. While Leamer's suggested remedy, sensitivity analysis, has played a role in this, we argue that the primary engine driving improvement has been a focus on the quality of empirical research designs. The advantages of a good research design are perhaps most easily apparent in research using random assignment. We begin with an overview of Leamer's 1983 critique and his proposed remedies. We then turn to the key factors we see contributing to improved empirical work, including the availability of more and better data, along with advances in theoretical econometric understanding, but especially the fact that research design has moved front and center in much of empirical micro. We offer a brief digression into macroeconomics and industrial organization, where progress -- by our lights -- is less dramatic, although there is work in both fields that we find encouraging. Finally, we discuss the view that the design pendulum has swung too far. Critics of design-driven studies argue that in pursuit of clean and credible research designs, researchers seek good answers instead of good questions. We briefly respond to this concern, which worries us little

Investing in school systems: conceptualising returns on investment across the health, education and social protection sectors

Public policies often aim to improve welfare, economic injustice and reduce inequality, particularly in the social protection, labour, health and education sectors. While these policies frequently operate in silos, the education sphere can operate as a cross-sectoral link. Schools represent a unique locus, with globally hundreds of millions of children attending class every day. A high-profile policy example is school feeding, with over 400 million students worldwide receiving meals in schools. The benefits of harmonising interventions across sectors with a common delivery platform include economies of scale. Moreover, economic evaluation frameworks commonly used to assess policies rarely account for impact across sectors besides their primary intent. For example, school meals are often evaluated for their impact on nutrition, but they also have educational benefits, including increasing attendance and learning and incorporating smallholder farmers into corporate value chains. To address these gaps, we propose the introduction of a comprehensive value-for-money framework for investments toward school systems that acknowledges the return to a common delivery platform—schools—and the multisectoral returns (eg, education, health and nutrition, labour, social protection) emerging from the rollout of school-based programmes. Directly building on benefit-cost analysis methods, this framework could help identify interventions that yield the highest gains in human capital per budget expenditure, with direct implications for finance ministries. Given the detrimental impact of COVID-19 on schoolchildren and human capital, it is urgent to build back stronger and more sustainable welfare systems