Tag: Returns to the investment in education
This paper updates evidence on the returns to investment in education by adding estimates for new countries and refining existing estimates to bring the total number of country cases to over 60. The new cross country evidence confirms and reinforces earlier patterns, namely, that returns are highest for primary education, the general curricula, the education… Read more
The question of the profitability of investing in human capital remains controversial. Three main methods for estimating the rate of return to investment in education are described: the elaborate method, the earnings function method, and the short-cut method. Application of cost-benefit analysis measures in 44 countries yields four patterns that have important policy implications: (i)… Read more
This article presents a broad overview of human capital theory and presents highlights of the most recent evidence on the private and social returns to education. A distinction ismade between the narrow social returns, as traditionally estimated in the economics of education literature, and the wide social returns that include externalities. The distributive implications of… Read more
The pattern of economic returns to education can help us to understand the poverty-reducing potential of different levels of education. It is commonly believed that labour market returns to education are highest for the primary level of education and lower for subsequent levels. Recent evidence suggests that the pattern is changing. The paper explores the… Read more
This book sets forth a mordern human capital approach to higher education policy in the United States, and in other OECD member countries. It emphasises the nature, measurement, and valuation of the private and social benefits of higher education – with special attention to the non-market private and social benefits, direct and indirect effects, and… Read more
This paper estimates wage returns to investment in education for persons with disabilities in Nepal, using information on the timing of being impaired during school-age years as identifying instrumental variables for years of schooling. They combine primary data with nationally representative survey data from the Nepal Living Standard Survey 2003/2004 (NLSS II). The estimated rate… Read more