## Schools, Skills, and Economic Growth

_IMF Blog, March 10, 2017_

## Source details

**Canonical URL:** [Schools, Skills, and Economic Growth](https://www.imf.org/en/blogs/articles/2017/03/10/schools-skills-and-economic-growth-2)

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## Bibliographic details
- Authors: iMFdirect
- Published: March 10, 2017

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### Overview
- Publication: iMFdirect, March 10, 2017
- Author/Interviewee: Eric Hanushek, Paul and Jean Hanna Senior Fellow at the Hoover Institution of Stanford University
- Central premise: "the only thing that matters for a country is the skills of its people."

### Evidence and measurement
- International testing framework: "What we’ve had for the last 50 years is a set of international tests of skills in math and science."
- Methodology described: standardized math and science problems administered across countries to compare performance.

### Key findings
- Relationship between skills and growth: "Countries that have lots of skills grow faster than countries that have low skills."
- Regional illustration: "that’s an easy way to explain what’s going on in Africa and Latin America, where the skills are very low, and the countries are just not growing in the long run."
- U.S. position in international tests: "The US comes in about 30th in the world of those countries taking these tests," placing it "in the lower half of developed countries."

### Labor market implications
- Decline of traditional middle-class pathways: People who used to have a good middle-class income with a high school education are in trouble.
- Structural change in employment: "The manufacturing industries that offered good jobs for those who could use a wrench or swing a hammer are long gone."
- Risk for poorly prepared workers: "the future is bleak for anyone who is not well prepared for the changing job market."

### Policy recommendation
- Primary solution endorsed: "we deal with it by improving the quality of our schools, and giving skills to people, and allowing them to be ready for a changing world in the future."

*Source: Schools, Skills, and Economic Growth — iMFdirect, March 10, 2017*

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_Source: https://www.imf.org/en/blogs/articles/2017/03/10/schools-skills-and-economic-growth-2_