Rising productivity has been a key factor for the growth of the countries in the world whether they are developed or developing. The policy makers try to overcome basic macroeconomic problems such as unstable growth, unemployment and insufficient investment capacity with the help of increasing productivity. It is widely accepted that each economy in the world must provide a skilled work force in order to build and maintain productivity. In this context, the aim of this paper is to empirically examine the contribution of higher education level on labour productivity in European Union countries and Turkey, which is a candidate country of European Union membership. Within this scope a panel data estimator applied for 28 European Union countries and for Turkey between 2004-2013 time span. The results of Driscoll-Kraay estimator shows education level has a significant and positive effect on labour productivity. The results of analyse also suggest that innovation variable has a significant and positive influence on productivity.