The Educational Composition of the Labour Force: An International Comparison.

Abstract

Policy-makers and analysts typically use differences between the school enrolment ratios of different countries or regions to justify educational investment. The authors argue that although the enrolment ratio is a readily available statistic, it may not be the most appropriate indicator for setting investment priorities in education. The report assesses the effective supply of human resources available for economic growth, and captures the degree in which flows translate into human capital stocks. They argue that enrolment ratios alone are an insufficient basis for determining educational policies or priorities because they give a false (upwardly biased) impression of the educational attainment of a country's human resources. They conclude, instead, that statistics on the educational composition of the labour force, constitute a more sensitive human capital index.