Abstract:

Objective: This research analyzes the impact of higher education in the age groups of 25-34, 35-54 and 55-64 years on economic growth, over the period 2000-2019, in a sample of member countries of the Organization for Economic Cooperation and Development (OECD). In particular, the effects of the first group and of those who finished their higher education 30 years ago are examined. Methodology and data: The statistical estimation considers panel data models by ordinary least squares, cross section, and fixed and random effects. The data comes from the OECD and the World Bank. Results: The main finding is that when disaggregating by age, empirical evidence is found that individuals with higher education between the ages of 25 and 34 have a positive impact on economic growth, while individuals whose ages are between 55 and 64 years present a negative effect due, perhaps, to the obsolescence of the acquired knowledge that in most cases was overcome by the vigorous scientific and technological progress of the last decades. The group of 35-54 years is not significant and it is not possible to make inferences. Limitations: The research is restricted to analyzing only higher education in individuals and graduate studies are not reviewed. Recommendations: Decision makers are recommended to: 1) have a better design of instruments and adequate incentives to increase the coverage and quality of education for young people in order to boost economic growth more strongly, and 2) promote training and updating of the age group from 35 to 54 years to avoid falling into obsolescence. Originality: 1) focuses on 24 OECD countries, 2) has more data available compared to the past, 3) performs panel data analysis allowing for more countries, variables and time periods, 4) and reduces multicollinearity Conclusions: Higher education has a positive effect on the economic growth of the OECD countries in the age group of 25 to 34 years, however, with the passage of time the obsolescence of knowledge occurs, which negatively affects economic growth.

Keywords:

Economic growth, higher education, panel data.

JEL classification:

I23, O40, O41, C50, C33.

How to Cite:

María Guadalupe Escamilla-Mejía, Alí Aali-Bujari and Francisco Venegas-Martínez. Obsolescence of Higher Education after 30 Years and its Negative Impact on Economic Growth in OECD Countries . [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a224/