New Estimates of the Private Rate of Return to University Education in Australia
AbstractThe objective of this study is to provide new estimates of the average private rate of return to a university degree in Australia. It considers the case of a hypothetical individual who has completed high school in 2000, and is making a decision on whether to begin a three-year bachelor degree or to enter the workforce in 2001. For the 'base case' scenario of a 'representative' individual making a decision on whether to attend university, the estimate of the average private rate of return to a three-year bachelor degree is 14.5 per cent. Underlying this estimate is a lifetime net monetary gain of $380,958 from undertaking the degree (assuming a zero rate of discount). Estimates of the rate of return to a bachelor degree are fairly robust to alternative scenarios. Rates of return do however show a wide variation across the field of qualification categories. The estimated returns are relatively high for business and administration, and engineering graduates, and relatively low for graduates in the fields of society and culture, and science.
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Bibliographic InfoPaper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2002n14.
Length: 32 pages
Date of creation: Jul 2002
Date of revision:
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Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-07-31 (All new papers)
- NEP-LAB-2002-07-31 (Labour Economics)
- NEP-MIC-2002-07-31 (Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Melbourne Institute Working Paper Series
wp2002n05, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
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- Michel Dumont, 2008. "Working Paper 22-08 - Wages and employment by level of education and occupation in Belgium," Working Papers 0822, Federal Planning Bureau, Belgium.
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