The effect of life expectancy on schooling: Evidence from the international health transition

The influence of life expectancy on schooling is usually thought of as one main mechanism by which life expectancy possibly affects income per capita and thus economic development. However, the relevance of this channel has been qualified in recent research. This paper studies whether life expectancy has an effect on the number of years of schooling. Using cross-country panel data, the empirical analysis finds that a 1 percent rise in life expectancy at birth increases years of schooling by 3.5 percent. The analysis also demonstrates that this result is not driven by child mortality or by general improvements in living standards. All in all, the evidence presented suggests that health, as measured by life expectancy, has a direct positive effect on the accumulation of human capital.