Publication: Returns to Investment in Education: A Decennial Review of the Global Literature
Date
2018-04
ISSN
Published
2018-04
Author(s)
Abstract
Returns to investment in education based
on human capital theory have been estimated systematically
since the 1950s. In the 60-plus year history of such
estimates, there have been several compilations in the
literature. This paper reviews and highlights the latest
trends and patterns based on a database of 1,120 estimates
in 139 countries. The review shows that the private average
global rate of return to one extra year of schooling is
about 9 percent a year and very stable over decades. Private
returns to higher education have increased over time,
raising issues of financing and equity. Social returns to
schooling remain high, above 10 percent at the secondary and
higher education levels. Women continue to experience higher
average rates of return to schooling, showing that
girls' education remains a priority. Returns are higher
in low-income countries. Those employed in the private
sector of the economy enjoy higher returns than those in the
public sector, lending support to the productive value of education.
Citation
“Psacharopoulos, George; Patrinos, Harry Anthony. 2018. Returns to Investment in Education; Returns to Investment in Education: A Decennial Review of the Global Literature : A Decennial Review of the Global Literature. Policy Research Working Paper;No. 8402. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/29672 License: CC BY 3.0 IGO.”
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