Returns to investment in education: a further update
By G. Psacharopoulos, Harry Anthony Patrinos *. 2002
3,143 citations recorded by the source corpus.
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.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/865e89002bd49025427f2838ba66c1ad6223f047
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Citations in the corpus
- Do Students Care about School Quality? Determinants of Dropout Behavior in Developing Countries (2008, neutral): “For a discussion of the quality elements, see UNESCO (2005). tries has a high payoff, especially for lower levels of schooling (e.g., Psacharopoulos 1994; Psacharopoulos and Patrinos 2004).”
- Commodity Price Volatility and the Sources of Growth (2012, neutral): “12 See also Psacharopoulos and Patrinos (2004).”
- Measuring the Economic Gain of Investing in Girls: The Girl Effect Dividend (2011, positive): “A cross country study on the effect of education on average wages (a proxy for productivity) estimates that primary education increases girls’ earnings by 5 to 15 percent over their lifetimes, while boys experience a rate of return between 4 and 8 percent (Psacharopoulos and Patrinos 2002).”
- Life-Cycle Earnings, Education Premiums, and Internal Rates of Return (2017, neutral): “Under standard conditions, this finding suggests that it was finan- 1 See the review articles byCard (1999),Harmon,Oosterbeek, andWalker (2003), Psacharopoulos and Patrinos (2004), and Heckman, Lochner, and Todd (2006).”
- Education as a Positional Good: A Life Satisfaction Approach (2011, methodology): “Empirical work focusing on the investment component of education tends to find significant monetary returns to education (e.g. Psacharopoulos and Patrinos 2004 ).”