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The High Cost of Low Educational Performance

This report uses recent economic modeling to relate cognitive skills – as measured by PISA (Programme for International Student Assesment and other international instruments – to economic growth. The relationship indicates that relatively small improvements in the skills of a nation’s labor force can have very large impacts on future well-being. Moreover, the gains, put in terms of current Gross Domestic Product (GDP), far outstrip the value of the short-run business-cycle management.