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- These costs are composed of regulatory costs (broken down into monetary regulatory start up costs and wage costs of both startup delays and the post-start up time required to do taxes, all based on the World Bank Doing Business Survey) The argument goes that the studies using average years of schooling, or other quantitative indicator of schooling, as a measure of human capital implicitly assume that a year of schooling delivers the same increase in skills and competences regardless of the education system, as well as that formal schooling is the primary source of education. In contrast, this strand of the literature concentrates directly on the role of cognitive skills, by using measures of educational achievement derived from the international student achievement tests (e.g., the OECD PISA scores; see Hanushek and Kimko, 2000, for an earlier significant contribution along these lines).
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