Working Paper
Educational inputs and economic development
in end-of-nineteenth-century Prussia
Ruth Maria Schüler
Ifo Institute, Munich, 2016
Ifo Working Paper No. 227
Ifo Institute, Munich, 2016
Ifo Working Paper No. 227
Which role did educational investments play for economic development? Using data on schooling quantity and quality provided by the first and second Prussian census on primary schools and two measures capturing the high and the low end of the income distribution allows applying a value-added approach for industrializing West Prussia. I find that educational investments and in particular teacher unit costs increase income tax per capita substantially while day laborer wages are unaffected. Exploring the sectoral composition of the economy, it is hypothesized that the rising income stems from a shift to higher skilled and higher paid occupations.
Schlagwörter: Educational economics, economic development, input output analysis, expenditures, Prussian economic history
JEL Klassifikation: N330, I220, H520