June 6, 2011
Test scores and economic performance, a brief literature overview
We briefly review the literature on returns to education. The literature consists of studies at both the micro level, which study the relationship between schooling, test scores and wages, as macro level, which study the relationship between schooling, international test scores and economic growth.
The micro studies find returns of around 12 percent to a standard deviation higher test scores. Macro studies generally find considerably higher returns, but estimates vary more widely.