After reading “Chances of Countries Attaining an Above Median GDP Per Capita Based on Adult Literacy Rates” a friend asked if I had data on the relationship between tertiary education and GDP per capita.
Yes, the World Development Indicators provide the raw data necessary to produce the following graph depicting a a direct relationship between percent of the labor force with tertiary education and GDP per capita.
Thirty-five percent of the variance in GDP per capita is accounted for by the percent of the labor force with tertiary education. A 1% increase in the labor force with tertiary education is associated with a $986 increase in GDP per capita.
Investments in education are positively related to economic outcomes.