In Steps Forward, Steps Backward: What to Make of the Government’s Plans for Higher Education Market Reform, edited by James Croft and Gabriel Heller Sahlgren of the Centre for the Study of Market Reform of Education, I write about the returns to education, with a focus on the United Kingdom and Europe.
I offer analysis of the latest estimates of the returns to education and make the case for expansion of higher education provision based on a fair and sustainable cost-recovery model at the university level based on future earnings.
“High returns to tertiary education signal that university is a good private investment, while the likelihood of positive spillover effects for society means that encouraging expansion of higher education enrollment may be a smart move. This entails sustainable cost-recovery (via, for example, income-contingent student loans) and targeted subsidies to help improve access for the economically disadvantaged…[more]
Source: Montenegro, Claudio E., and Harry A. Patrinos. “Comparable estimates of returns to schooling around the world.” World Bank Policy Research Working Paper 7020 (2014)