This paper helps reconcile the contradictory findings about school resources and school effectiveness by developing the implications of data aggregation. With model misspecification, the theoretical impact of aggregation is generally ambiguous. When important state differences in school policy...

Existing estimates of the labor-market returns to human capital give a distorted picture of the role of skills across different economies. International comparisons of earnings analyses rely almost exclusively on school attainment measures of human capital, and evidence incorporating direct...