Education system quality explains all the important features of economies

The quality of the education system can be measured either by the OECD’s PISA surveys or by the proportion of young people not in education or employment. Comparing OECD countries, we show that education system quality is highly correlated with all the important features of economies: Labour force skills; The employment rate and the unemployment rate; Income inequality before redistributive policies; Productivity gains; The degree of corporate modernisation; The weight of industry in the economy.