Does education engender cultural values that matter for economic growth?

▶ We investigate the determinants of individuals’ cultural values, with a special focus on examining the effect of both formal and informal educational attainment on individuals’ cultural values. ▶ Increased formal education as well as increased exposure to informal education through for example media increases the likelihood that an individual places more emphasis on achievement motivation, as opposed to conforming to traditional social norms. ▶ The effect of individuals’ social networks on their cultural values depends on the nature of the network. Empirical research has shown that cultural values matter for economic growth and has specifically identified the achievement motivation as an aspect of culture that engenders economic growth. If specific cultural values engender economic growth, how then can societies promote them? This paper addresses this question using the 2005 wave of the World Values Survey data for 43 countries. We test the contention that both formal and informal education significantly impacts the relative importance an individual places on economic achievement vis-à-vis traditional social norms. Results suggest that individuals with higher education levels and better access to media attach higher importance to values related to autonomy and economic achievement as compared to conformity to traditional social norms. These results underscore the importance of institutions, specifically public policy on both formal and informal educational channels, in facilitating adoption of values that are considered important for economic development.