Trends in returns to schooling: why governments should invest more in people’s skills
(EN)
Patrinos, Harry
One of the biggest economic benefits of schooling are labor market earnings. For many people, education and experience are their only assets. This is why I believe that it’s very important to know the economic benefits of investments in schooling. The rate of return equates the value of lifetime earnings to the net present value of costs of education. For an investment to be justified, the returns should be positive and higher than the alternative. For the individual, weighing costs and benefits means investing as long as the rate of return exceeds the private discount rate.
(EN)
