The Changing Pattern of Returns to Education : What Impact Will This Have on Inequality?
The pattern of economic rates of return to investments in education can help us to understand the benefits of schooling. It was common knowledge that the returns to education were highest for the primary level of education and lower for subsequent...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/505531559051854654/The-Changing-Pattern-of-Returns-to-Education-What-Impact-Will-This-Have-on-Inequality http://hdl.handle.net/10986/31748 |
| Summary: | The pattern of economic rates of return
to investments in education can help us to understand the
benefits of schooling. It was common knowledge that the
returns to education were highest for the primary level of
education and lower for subsequent levels. Recent evidence
suggests that the pattern has changed. Since the 1980s, the
returns to schooling overall have increased. The returns to
higher education have increased the most. The fact that the
more educated have improved their position, despite an
increase in their numbers, must mean that the demand for
more educated workers has increased more than supply over
time, causing an increase in the overall returns to
schooling. Possible reasons include technological change
favoring higher-order skills, increased coverage at lower
levels of schooling, and the quality of schooling. |
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