Catching up in Education in the Economic Catch-up of Japan with the United States, 1890-1990

Yoshihisa Godo, Yujiro Hayami

Summary –

Structure of the Paper

Section 1 – The Problem and the approach

Section 2 – Overview on the Evolution of the Educational System in Japan (Background knowledge for the Quantitative Analysis)

Section 3 –

How Formal Education affected the growth in the stock of human capital in Japan (based on time series data on average schooling in Japan)

What are the major characteristics of the growth in the stock of human capital in through formal education as compared to the United States.

Section 4 –

Broad trends of the level of education with real GDP per capita and capital-labour ratio – Compared for United States and Japan

Discuss – on the basis of the trend comparisons – the role of education in the race of economic growth between newly emerging economies and advanced economies.

Section 5 – Summary

Finding and Conclusion Implications for Developing Countries

Methodology

Type: Quantitative

Key Concepts & Bullet Points –

Sustained Increases in real national income in advanced market economies depend predominantly on improved efficiency as measured by the growth of Total Factor Productivity (Simon Kuznets)

According to Simon Kuznets

Real National Income α Improved Efficiency α Growth in TFP

Real National Income is less dependent on Conventional Inputs (Physical Capital & Labour in person-hours)

Investment in Education is a major source of growth in TFP – Hence National Income

According to Theodore Schultz

Real National Income α Improved Efficiency α Growth in TFP α Investement in Education

The role of education may be different between the earlier and later stages of economic growth.

There is a lack of long-term statistics on how investments in education have affected the creation and accumulation of human capital. This data is necessary for the analysis of the role of education in modern economic growth in entire time span.

Important Individuals

Simon Kuznets

Theodore Schultz

Important Resources

Important Definitions –

Total Factor Productivity (TFP) – Variable which accounts for effect in total output not caused by traditionally measured inputs of labor and capital.

Sub-sections of Total Factor Productivity: Technology Growth and Efficiency

Alternative Names: Solow Residual, Multi-factor Productivity

Average Schooling – The average number of schooling years per person in the working-age population defined as persons between the ages of 15 and 64

GDP Per Capita –

Capital Labour Ratio -

Meiji Restoration

Tokugawa Shogunate

Fukoku Kyohei – 富国強兵 , "Enrich the country, strengthen the military"), originally a phrase (Fuguo Qiangbing) from the ancient Chinese historical work on the Warring States period, Zhan Guo Ce (Kanjigen, Gakken Co., Ltd.), was Japan's national slogan during the Meiji period, replacing slogan Sonnō jōi ("Revere the Emperor, Expel the Barbarians")

Originating from Iwakura Mission to Europe

Shokusan Kogyo – （殖産興業） - Increase production, encourage industry. The specific policy designed to achieve national wealth and power was called

Gakusei – School System Rule 1872

Shogakko Rei (Primary School Order) 1886

Jinjo Shogakko – Ordinary Primary School – 4 years of Compulsory Education (Under Municipal Authority)- Homogeneous General Education for everybody

Koto Shogakko – Higher Primary School – 2-4 years of schooling for those who completed Jinjo Shogakko (Ordinary Primary School)- Multiple Paths Separated by Profession and Gender

Compulsory was increased to 6 years in 1907

Universities and Colleges – Small fraction of children advanced to university

Vocational Schools – Modelled on Technische Hochschulen

Middle Schools Segregated according to gender Only tertiary education available was girls high school graducate course, girls higher normal schools. Limited vocational colleges. Universities were closed to girls.

Private women colleges were not allowed to attain university status

Questions for Clarification

Interesting Reading but not Important for the subject