The effect of raising school quality on earnings

Abstract This article reviews global evidence for the relationship between learning outcomes and earnings, focusing on the economic returns to cognitive skills. Drawing on 73 studies across 41 countries, it shows that a 1 standard deviation (SD) increase in test scores (used as a proxy for skills) was associated with earnings gains of about 15%. This effect was consistent across income levels and often exceeded the average return from an additional year of schooling. The findings suggest that schooling influences earnings largely through skill acquisition. The analysis is descriptive but highlights the importance of prioritizing learning outcomes alongside access in education policy and investment decisions.