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Our goal is the estimation of country - level production function aimed at understanding the role of human capital. I analyse the effect of education, especially the effect of the share of college graduates in prime-age population (between 25 - 54 years) on the European Union (EU) countries' labour productivity. Here, an important issue is efficiency of tertiary education institutions. I split the ratio of human capital to observe it from different aspects and compare an effect of lower and upper tertiary educated, by specializations and by gender.