Educational outcomes : a literature review of policy drivers from a macroeconomic perspective

This paper reviews recent empirical literature on policy drivers of two educational outcomes - years of schooling and rates of return - that form the OECD’s aggregate measure of human capital. The paper sets the literature findings into the context of current educational polices in place in OECD countries. While much of the empirical results are mixed, depend on country and time coverage as well as estimation methods, the review identifies the following policies most likely to promote better educational outcomes: quality pre-primary education, quality teaching, accountability and autonomy of teaching institutions, comprehensive lower secondary education and availability of individual financing for the pursuit of higher education.