Report of recommendations to the Iowa Department of Education, Division of Vocational Rehabilitation Services, June 30, 2007

Report on the Iowa Department of Education, Division of Vocational Rehabilitation Services for the year ended June 30, 2007

Education, growth and income inequality

Estimates of the e¤ect of education on GDP (the social return to education)have been hard to reconcile with micro evidence on the private return. We present a simple explanation that combines two ideas: imperfect substitution between worker types and endogenous skill biased technological progress. When types of workers are imperfect substitutes, the supply of human capital is negatively related to its return, and a higher education level compresses wage di¤erentials. We use cross-country panel data on income inequality to estimate the private return and GDP data to estimate the social return. The results show that the private return falls by 2 percentage points when the average education level increases by a year, which is consistent with Katz and Murphy's [1992] estimate of the elasticity of substitution between worker types. We find no evidence for dynamics in the private return, and certainly not for a reversal of the negative e¤ect as described in Acemoglu [2002]. The short run social return equals the private return.

Report on the Iowa Department of Education for the year ended June 30, 2007

Report on the Iowa Department of Education for the year ended June 30, 2007

Iowa Department of Education Performance Plan, FY 2009

Agency Performance Plan, Iowa Department of Education

Department of Education, Iowa Vocational Rehabilitation Services Performance Plan, FY 2009

Agency Performance Plan, Department of Education, Iowa Vocational Rehabilitation Services

How different are returns to education? Evidence from German school choices

This study presents estimates of returns to post-secondary educationand wage differentials among graduates fromdifferent secondary schoolsin Germany. I use an empirical model that captures the basic features ofthe German education system. It controls for selection into post-secondaryeducation and treats latter as endogenous in the wage equation. Myresults show that OLS estimates are severely biased. The direction ofthe bias depends on the secondary school type. Annual returns topost-secondary education differ significantly: they are eight timeshigher for graduates from the highest secondary school than for graduatesfrom the lowest secondary school.

Iowa Department of Education Strategic Plan, 2008

This report outlines the strategic plan for Iowa Department of Education, goals and mission.