The school-first solution | A top economist games out how to spend education money for health payoffs  Americans spend $5,000 more per year on medical care than people in other rich countries, yet live shorter and less healthy lives. Most efforts devoted to addressing health involve the medical system: covering more people, changing the flow of dollars to providers, reducing administrative expenses and the like. But medical care is largely focused on helping people who are sick. What’s the best way to prevent them from getting sick in the first place?  I have come to believe that the most cost-effective dollar in health is the one spent on education…


Global Economic Prospects: How to Promote Potential Growth: Despite a recent acceleration of global economic activity, potential output growth is flagging. At 2.5 percent in 2013-17, post-crisis potential growth is 0.5 percentage point below its longer-term average and 0.9 percentage point below its average a decade ago, with an even steeper decline in EMDEs. This slowdown mainly reflects weaker capital accumulation, but is also evidence of slowing productivity growth and demographic trends that dampen labor supply growth. These forces will continue and, unless countered, will depress global potential growth further over the next decade. A menu of policy options could help reverse this trend, including comprehensive policy initiatives to lift physical and human capital, encourage labor force participation, and improve institutions…Education Demographics and Global Inequality: An expected shift in the skill composition of the global labor force will have important consequences for the future of global income inequality. Specifically, a more educated labor force from emerging market and developing economies will likely reduce inequality between countries. It would also diminish inequality within countries, especially in EMDEs…

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