Many argue that increasing education spending will improve educational results and consequently boost future economic growth. However, a recent study found that the quantity of education is a less important factor in economic growth than the quality of education.
Researchers used test scores in 39 countries in mathematics and science from 1965 to 1991. The quality of maths and science education is considered to be indicative of a country’s growth potential, and should be reflected in test results. They compared the scores to economic growth rates, and to traditional quantitative education measures such as spending per pupil.
They found:
Thus, the study suggests that boosting spending will not achieve the desired results without substantial education reform designed to improve performance.
Source: The Math of Growth, Economic Intuition, Winter 2001; based on Eric A. Hanushek and Dennis D. Kinko, Schooling, Labour-Force Quality, and the Growth of Nations, American Economic Review, December 2000.
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