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Returns to investment in education: a further update

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  • George Psacharopoulos
  • Harry Anthony Patrinos

Abstract

Returns to investment in education based on human capital theory have been estimated since the late 1950s. In the 40-plus year history of estimates of returns to investment in education, there have been several reviews of the empirical results in attempts to establish patterns. Many more estimates from a wide variety of countries, including over-time evidence, and estimates based on new econometric techniques, reaffirm the importance of human capital theory. This paper reviews and presents the latest estimates and patterns as found in the literature at the turn of the century. However, because the availability of rate of return estimates has grown exponentially, we include a new section on the need for selectivity in comparing returns to investment in education and establishing related patterns.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Education Economics.

Volume (Year): 12 (2004)
Issue (Month): 2 ()
Pages: 111-134

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Handle: RePEc:taf:edecon:v:12:y:2004:i:2:p:111-134

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References

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  1. Colm Harmon & Ian Walker, 1996. "The marginal and average returns to schooling," IFS Working Papers W96/11, Institute for Fiscal Studies.
  2. Griffin, Peter & Edwards, Alejandra Cox, 1993. "Rates of return to education in Brazil: Do labor market conditions matter?," Economics of Education Review, Elsevier, vol. 12(3), pages 245-256, September.
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  8. Daron Acemoglu & Joshua Angrist, 2001. "How Large are Human-Capital Externalities? Evidence from Compulsory-Schooling Laws," NBER Chapters, in: NBER Macroeconomics Annual 2000, Volume 15, pages 9-74 National Bureau of Economic Research, Inc.
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  16. Christopher A. Pissarides, 2000. "Human Capital and Growth: A Synthesis Report," OECD Development Centre Working Papers 168, OECD Publishing.
  17. Robert H. Haveman & Barbara L. Wolfe, 1984. "Schooling and Economic Well-Being: The Role of Nonmarket Effects," Journal of Human Resources, University of Wisconsin Press, vol. 19(3), pages 377-407.
  18. Bennell, Paul, 1996. "Rates of return to education: Does the conventional pattern prevail in sub-Saharan Africa?," World Development, Elsevier, vol. 24(1), pages 183-199, January.
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  1. Rate of return to education across countries
    by kdmtz in Devecondata on 2010-09-09 15:14:00
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