Economic return on education - What are the incentives to invest in education?

ECONOMIC RETURN ON EDUCATION OECD BETTER POLICIES FOR BETTER LIVES WHAT ARE THE INCENTIVES TO INVEST IN EDUCATION? Men Women Upper secondary or post-secondary non-tertiary education level as part of initial education Tertiary education as part of initial education Internal Rate of Return Total Costs for an Total Benefits for an Total Costs for an Total Benefits for an Total Costs for an Total Benefits for an Total Costs for an Total Benefits for an individual obtaining individual obtaining individual obtaining public tertiary education individual obtaining individual obtaining individual obtaining individual obtaining individual obtaining private upper secondary education secondary education secondary education secondary education public upper public upper public tertiary private upper private tertiary private tertiary education education education -5% 0% 10% 20% 30% 40% 50p00 200p00 150,000 Australia 2005 50000 289.972 20p00 150000 Austria? 100s00 2008 50.000 200.000 150.00 Belgium' 50p00 Canada 2008 50p00 200p00 150p00 Czech Republic 100,p00 2008 50.000 200p00 -40,436 38,42I 150,00 Denmark 100.000 2008 50000 200p00 150,000 Estonia -5,799 -9,396 -3,612 4,587 2008 5000 1sаров Finland 100.00 2008 50.00 150,000 France 100p00 2008 50.000 20p00 150000 Germany 100p00 2008 50000 274, 199 200000 Hungarys юероо 2008 50p00 291.616 200,000 Ireland 150,000 100p00 2008 5ap00 20p00 29,109 150p00 Israel -5,483 100p00 2008 50,000 Italy 2008 5арoв 200p00 Japan? 100s00 50.000 200p00 -12,606 Korea 1,450 2008 250 117 150 000 Netherlandsl, 3 100p00 50.000 200p00 150000 New Zealand 10p00 2008 50000 Norway 100p00 2008 50,00 252,917 200p00 Poland 100p00 2008 50000 401.901 200p00 150000 Portugal 1юароо 2006 50,00 200p00 150.00 Slovak Republic 42.8% 100.000 2008 50p00 зво 252.262 200.s00 150 800 Slovenia 100s00 2007 50p00 200,p00 Spain 100p00 2008 42,682 20000 -15,258 150p00 Sweden юегор 2008 50000 250p00 200,000 150,000 Turkey 2005 265 949 24 525 United Kingdom? 4 as керор 2008 50p00 445.775 235.407 200,00 United States3, 4, 5 100,p00 2008 OECD average 150 000 100,p00 300,000 International Rate of Return International Rate of Return 100,000 for an Individual obtalning for an Individual obtalning Net Present Value for an Individual Net Present Value for an Individual Net Present Value for Individual Net Present Value for an Individual private upper secondary private tertary education 50,000 obtalning private upper secondary obtalning public upper secondary obtalning private tertiary education obtalning public tertlary education International Rate of Return International Rate of Return 10,000 for an Individual obtalning for an Individual obtalning All data are Equivalent USD converted using PPPS for GDP public upper secondary public tertlary education How to read this diagram This matrix-type diagram arranges "OECD Economic Return on Education" data by country and by indicator. It allows assessing the returns on private and public education at secondary and tertiary level by gender within a country as well as comparing a single indicator across countries. A comparison between countries based on a single indicator n is possible by looking at a single "column": Indicator n [a a.. Besides, the Net Present Value for a given country m and associated to both the Total Costs and Total Benefits of obtaining a certain level of education is represented with bubbles and divided by gender. In cases where both, males and females, have a positive Net Present Value, the bubble representing the largest Net Present Value contains the bubble representing the smallest one. Whereas one or both, males or females, have a negative Net Present Value, each bubble is presented separately and their actual value is indicated above each of them Total Costs / Benefits Economic Return on Education Indicators Total Renefies Total Costs Total Benefits Total Costs • Man Women m = OECD countries n= Economic Return on Education Indicators [Total Costs for an individual obtaining private or public upper secondary or tertiary education, Total Benefits for an individual obtaining private or public upper secondary or tertiary education] Finally, the "Internal Rate of Return" (IRR) is show in the line chart at the right. In this chart the IRR is showed for each of the OECD countries and for each of the Economic Retum on Education indicators and it is divided by gender. The area between two points of the same indicator shows a country's gender profitability disparities in public or private education at secondary or tertiary level. Exampler Each element of the matrix not only contains the data for a given country m and indicatorn (i.e. Total Costs or Total Benefits for a certain public or private level of education) but it also shows this data divided by gender. This data is represented with bar charts. Spain A single countrym assessment is possible when looking at a single "row": 2008 Country, [a... Total Costs. Benefits Gender profitability disparities at private upper secondary level Men Women - Upper secondary education is compulsory in both countries. 2- Data at the lower and uppor secondary levels of education are not broken dawn. 1- Total Benefits for a male obtaining private tertiary education exceeds USD 250,000 (equivalent USD comverted using PPPS for GDP) - Total Benefits for a female obtaining private tertiary education exceeds USD 250,000 (equivalent USD comverted using PPP: for GDP) - Total Benefits for a male obtaining public tertiary education exceeds USD 250,000 (equivalont USD converted using PPPS for GDP) visualassessment Authors A. Duek & M. de Franceschi © copyright 2012. All rights reserved www.visualassesvent.net - [email protected] Sourcer OECD (2012), Education at a Glance 2012: OECD Indicators, OECD Publishing. http:/ldx.doiorg/10.1787leog-2012-en OECD Countries