A data set of comparable estimates of the private rate of return to schooling in the world, 1970–2014

PurposeYoung people experience lower employment, income and participation rates, as well as higher unemployment, compared to adults. Theory predicts that people respond to labor market information. For more than 50 years, researchers have reported on the patterns of estimated returns to schooling across economies, but the estimates are usually based on compilations of studies that may not be strictly comparable. The authors create a dataset of comparable estimates of the returns to education.Design/methodology/approachThe data set on private returns to education includes estimates for 142 economies from 1970 to 2014 using 853 harmonized household surveys. This effort holds the constant definition of the dependent variable, the set of controls, sample definition and the estimation method for all surveys.FindingsThe authors estimate an average private rate of return to schooling of 10%. This provides a reasonable estimate of the returns to education and should be useful for a variety of empirical work, including critical information for youth.Originality/valueThis is the first attempt to bring together surveys from so many countries to create a global data set on the returns to education.

Quality of Malaysian teachers based on education and training

Purpose The purpose of this paper is to investigate how the quality of teachers based on education and training provided under new reform policies in Malaysia affects their earnings outcomes. The study conducted a benefit and returns analysis guided by human capital theory. Design/methodology/approach The study used survey research methods to investigate human capital formation in the teaching profession using teachers’ qualifications, benefits and private rate of returns as key variables in the estimation. Findings Earnings and experience levels were highly correlated with teachers’ education levels, as suggested by human capital theory. The private rate of returns in earnings for each additional year of schooling of teachers was found to lie between 3 and 4 per cent per year. Discrepancies were apparent in teachers’ qualifications and licensure levels regionally and at academic levels, as expected. These correlated with earning levels. Practical implications Improvements in teachers’ salary and employment opportunities will attract higher quality graduates to the teaching profession. Teachers’ annual earnings in Malaysia are comparable to other public sector and private professional jobs in the nation but lag far behind those of the world’s top education systems. Increasing teachers’ earnings will attract better qualified teachers. Policymakers could address these issues. Originality/value This paper demonstrates the utility of economic analyses in terms of earnings returns, to evaluate the Malaysian policy of upgrading teachers’ qualifications as a mechanism to improve the overall quality of schooling. Such studies are rare but needed to understand the benefits and returns of policy-driven teacher education and training investments. This study provides new evidence of schooling returns using a recent, national data set.

The Gender Differences in School Enrolment and Returns to Education in Pakistan

Using estimates of schooling demand function and private rate of return to education by gender derived from Household Integrated Economic Survey 2010-11, this paper attempts to examine if there is any dynamics to define a differential behaviour across gender in enrolment in Pakistan and if there is then what can be the possible cause of such discrepancies and how can they be reduced. The first set of analysis focuses on the estimates of probability of enrolment at primary, secondary and tertiary level of education by gender. Strong evidence for higher likelihood of enrolment emerges only at the secondary level of education when the gender is male. The behaviour of the determinants for these schooling demand functions at different levels of education differs by gender. One such key variable is parental education, which is more pronounced in case of mother’s education towards increasing the likelihood of enrolment of girls at the primary and secondary level and of father’s education for boys at all levels and girls at the tertiary level. Hence investing in female education today will not only empower females today but as a positive externality will also lead to gender equity in educational outcomes in the future. Besides this intergenerational externality of investment in female education, the finding establishes that when conditional cash programmes are targeted at mothers as a policy tool they become an effective measure in increasing current female enrolment. Moreover the case for reducing gender disparities in educational outcomes is further supported when we see how gender imbalance in educational attainment and female labour force participation lead to discrepancies in the private rate of return to education by gender. The varied estimates of private rate of returns to education for males and females show that such deviations arise because the females labour force on average is much less educated than males and hence if the object is to raise the rates of returns, a targeted policy for reducing gender differences in enrolment at all levels of education primary, secondary and tertiary will have to be implemented.

How Do Marital Status And Gender Affect The PRR To A University Degree In Australia?

While Australian evidence suggests that the Private Rate of Return (PRR) to a university degree in Australia has gradually declined with increases in the cost of higher education, these studies have only measured the PRR for the average male and average female. This paper uses income data from the ABS Income and Housing Survey (2003-04) CURF to measure the impact of the 2005 increase in HECS fees on the PRR based on gender and marital status. This paper shows that the return to a university degree is largely affected by both gender and marital status and studies that measure the PRR to a university degree for single males and single females with no dependent children underestimate the PRR for most male graduates and overestimate the PRR of female graduates.

PENINGKATAN PRODUKTIVITAS REMAJA PUTUS SEKOLAH DI MASA KRISIS MELALUI PANTI SOSIAL BINA REMAJA

Krisis ekonomi yang melanda bangsa Indonesia dewasa ini berdampak meningkatnya angka kemiskinan yang mencapai hampir 73 juta dari 207 juta jiwa penduduk Indonesia. Situasi demikian lebih lanjut akan memacu lajunya angka pertumbuhan remaja putus sekolah. Padahal kondisi perekonomian makin tidak menentu akibat krisis multidimensional berkepanjangan sehingga berdampak luas pada rendahnya pertumbuhan ekonomi. Antisipasi terhadap permasalahan tersebut merupakan prioritas. Dalam rangka mengantisipasi masalah tersebut perlu upaya meningkatkan produktivitas remaja putus sekolah diantaranya melalui Panti Sosial Bina Remaja ( PSBR) sebagai wahana untuk meningkatkan potensi remaja putus sekolah, perlu mengembangkan model sistem manajemen bimbingan pelatihan ketrampilan, mental dan sosial secara integratif dengan instansi terkait dan pengusaha, sehingga para kelayan Panti Sosial Bina Remaja akan memperoleh bekal ketrampilan yang sesuai dengan pasaran kerja. Hal penting lainnya yakni perlu kiranya dilakukan penghitungan efisiensi, baik internal maupun eksternal, terhadap biaya pelaksanaan program bimbingan ketrampilan mental sosial kepada remaja putus sekolah dengan metode penghitungan cost efficiency analysis untuk menghitung efisiensi internal selanjutnya untuk menghitung efisiensi eksternal dipergunakan metode penghitungan cost benefit analyis untuk mengetahui private rate of return serta social rate return.