July 2001When investments in education in developing countries do not produce higher growth, the problem may be the quality of the schooling - of the education infrastructure, of the initial endowment in human capital, and of the system's ability to equitably distribute educational services. The...

Recent empirical studies question the conventional wisdom about the importance of education for growth. We test the hypothesis that this may be the case if human capital is diverted from growth-promoting activities to rent-seeking activities that are socially useful to reduce the negative...