Policy Research WORKING PAPERS Educalion and Employment Office of the Director Latin America and the Caribbean The World Bank January 1993 WPS 1067 Returns to Investment in Education A Global Update George Psacharopoulos Primary education continues to yield high returns in developing countries, and the returns decline by the level of schooling and a country's per capita income. The Policy ResearchWorking Papers disseminate the findings of work in progress and encouragetheexchangeof ideas among Bank staff and all others interested in development issues. These papers, distributed by the Research Advisorg Staff, carry the names of the authors, reflect arlytheirviews, and should beused and cited accordingly. The ftndings, interpretations, and conclusions arethe authors' own.They should not be attributed to the Wordd Bank, its Board of Directors, its management, or any of its member countries. Policy Research Education and Employment WPS 1067 This paper is a product of the Office of the Director, Latin America and the Caribbean Region. Copies of the paper are available free from the World Bank, 1818 H Street NW, Washington, DC 20433. Please contact George Psacharopoulos, room 14-187, extension 39243 (January 1993, 60 pages). Psacharopoulos updates compilations of rate of higher than in the public (noncompetitive) return estimates to investment in education sector. And the returns in the self-employment published since 1985 - and discusses method- (unregulated) sector of the economy are higher ological issues surrounding those estimates. than in the dependent employment sector. Some key world pattems: Controversies in the literature are discussed in the light of the new evidence. The o Among the three main levels of education, undisputable and universal positive correlation primary education continues to exhibit the between education and earnings can be inter- highest social profitability in all world regions. preted in many ways. The causation issue on whether education really affects eamings can be o Private retums are considerably higher than answered only with experimental data generated social retums because of the public subsidization by randomly exposing different people to various of education. The degree of public subsidy amounts of education. Given the fact that moral increases with the level of education, which is and pragmatic considerations prevent the genera- regressive. tion of such pure data, researchers have to make do with indirect inferences or natural o Social and private retums at all levels experiernents. Some have been attempted. generally decline by the level of a oJuntry's per capita income. Psacharopoulos looks at the research on overeducation or surplus schooling. * Overall, the retums to female education are higher than those to male education, but at The conclusions reinforce earlier pattems. individual levels of education the pattern is more They confirm that primary education continues mixed. to be the number one investment priority in developing countries. They also show that * The retums to the academic secondary educating females is marginally more profitable school track are higher than the vocational track than educating males, that the academic second- - since unit cost of vocational education is ary school curriculum is a better investment than much higher. the technical/vocational tract, and that the retums to education obey the same rules as investment * The retums for those who work in the in conventional capital - that is, they decline as private (competitive) sector of the economy are investment is expanded. The Policy Research Working Paper Series disseminates the findings of work under way in thc Bank. An objective of the series is to get these findings out quickly, even if presentations are less than fully polished. The findings, interprctations, and conclusions ir. these papers do not necessarily ->present official Bank policy. Produced by the Policy Research Dissemination Center RETURNS TO INVESTMENT IN EDUCATION: A GLOBAL UPDATE by George Psacharopoulos Latin America and the Caribbean Region The World Bank Table of Contents I. Introduction II. Methodological Issues III. Update Scope and Sources IV. World Patterns V. Controversies VI. Conclusion Table 1 Returns to Investment in Education by Level Full Method, Latest Year, Regional Averages Table 2 Returns to Investment in Education by Level Full Method, Latest Year, Averages by Per Capita Income Group Table 3 The Coefficient on Years of Schooling: Mincerian Rate of Retumn Table 4 The Coefficient on Years of Schooling: Mincerian Rate of Return Regional Averages Table 5 Change in the Returns to Investment in Education over a 15 Year Period: Full Method Table 6 Change in the Returns to Education over a 12 Year Period: Mincerian Method Table 7 Returns to Education by Gender Table 8 Selectivity Correction on the Returns to Education by Gender Table 9 Returns to Secondary Education by Curriculum Type Table 10 Returns to Higher Education by Faculty Table 11 Returns to Education by Economic Sector Table 12 Retums to Education in Self vs. Dependent Employment TABLE OF CONTENTS Table A-I Returns to Investment in Education by Level: Full Method, Latest Year Table A-2 The Coefficient on Years of Schooling: Mincerian Rate of Return, Latest Year Table A-3 Returns to Education by Level of Education and Gender Table A-4 The E.^fect of Selectivity Correction on the Returns to Education by Gender Table A-5 Returns to Secondary Education by Curriculum Type Table A-6 Returns to Higher Education by Subject Table A-7 Returns to Education by Economic Sector Table A-8 Returns to Education in Self vs. Dependent Employment Table A-9 Returns to Investment in Education by Level, Over-Time: Full Method Table A-9. 1 Absolute Change in the Returns to Investment in Education by Level, Over-Time: Full Method Table A-10 The Coefficient on Years of Schooling: Mincerian Rates of Return (over time) Table A-10.1 Absolute Change in the Coefficient on Years of Schooling: Mincerian Rates of Return (over time) TABLE OF CONTENTS Figure 1. Returns to Investment in Education by Level, Latest Year Figure 2. Mincerian Retums and Mean Years of Schooling Figure 3. Social Retums to Investment in Education by Income Levei Figure 4. Private Returns to Investment in Education by Income Level Figure 5. Mincerian Retums by Income Level Figure 6. Mincerian Returns to Education by Gender Figure 7. Social Returns to Secondary Education by Curriculum Type Figure 8. Retums to Education by Sector of Employment I. Introduction Compilations of rate of return estimates to investment in education have appeared in the literature since the early seventies (see Psacharopoulos 1973, 1981 and 1985). This is a further update taking into account work that has been published since 1985, including earlier pieces that came only lately to my attention. After discussing some methodological issues surrounding rate of return estimates, updated world pattems are presented. Controversies in the literature are discussed in the light of the new evidence. The final section discusses the implications of the findings for educational policy. II. Methodological Issues Estimates of the profitability of investment in education can be arrived at using two different basic methods which, in theory at least, should give very similar results: (a) the "full" or "elaborate" method, and (b) the "earnings function" method, which has two variants.' Understanding the estimation method is important for interpreting rate of return I I skip the "short-cut" and the 'net present value" methods as these are now used less frequently in the literature. For a fuller discussion of the different rate of return estimation methods, see Psacharopoulos and Ng (1992). 2 patterns. The method adopted by various authors is often dictated by the nature of the available data. The elaborate methc-d amounts to working with detailed age-earnings profiles by level of education and finding the discount rate that equates a stream of education benefits to a stream of educational costs at a given point in time. The annual stream of benefits is typically measured by the earnings advantage of a graduate of the educational level to which the rate of return is calculated, and the earnings of a control group of graduates of a lower educational level. The stream of costs consists of the foregone earnings of the individual while in school (measured by the mean earnings of graduates of the educational level that serves as control group) in a private rate of return calculation, augmented by the true resource cost of schooling in a social rate of return calculation. Private rates of return are used to explain people's behavior in seeking education of different levels and types, and as distributive measures of the use of public resources. Social rates of return, on the other hand, can be used to set investment priorities for future educational investments. The "basic" earnings function method is due to Mincer (1974) and involves the fitting of a semi-log ordinary least squares regression using the natural logarithm of earnings as the dependent variable, and years of schooling and potential years of labor market experience and its square as independent variables. In this semi-log earnings function specification the coefficient on years of schooling can be interpreted as the average private 3 rate of return to one additional year of education, regardless of the educational level to which this year of schooling refers to. The "extended" earnings function method can be used to estimate retums to education at different levels by converting the continuous years of schooling variable into a series of dummy variables referring to the completion of the main schooling cycles, i.e. primary, secondary and higher education, or referring to drop outs of these levels, or even to different types of curriculum (say, vocational versus general) within a given level. After fitting such extended earnings function the private rate of return to different levels of education can be derived by comparing adjacent dummy variable coefficients. The discounting of actual net age-earnings profiles is the most appropriate method (among those listed above) for estimating the returns to education because it takes into account the most important part of the early earnings history of the individual.2 But this method is very thirsty in terms of data -- one must have a sufficient number of observations in a given age-educational level cell for constructing "well-behaved" age-earnings profiles, i.e. non-crossing and concave to the horizontal axis). This is still a luxury in many empirical investigations, hence researchers have resorted to less data-demanding methods. 2 To purists, the best method would be the net present value. The popularity of this method has declined because net present values are not easily comparable across countries and currencies. 4 Hence, authors have found it increasingly convenient to estimate the returns to education based on the Mincerian earnings function method. Although easy to use, there are several pitfalls in usiag this method. First, in most applications, only the overall rate of return to the typical year of schooling is reported (i.e., the coefficient of years of schooling in the semi-log earnings function). Very few authors go to the trouble of specifying the education variable as a string of dummies in order to estimate the marginal effect of each level of education on earnings. But even authors who do this often label the coefficients of these dummy variables "returns to education", whereas these are marginal wage effects, not rates of return to investment in education. The "returns" notion necessitates taking into account the cost of education, whether private or social, and relating this cost to the wage e ffect.I Second, there is an important asymmetry between computing the returns to primary education and those to the other levels. Primary school children, mostly aged 6 to 12 years, do not forego earnings during the entire length of their studies. Hence it is a mistake to mechanically assign to them six years of foregone earnings as part of the cost of their education. When using the full discounting method, it is very easy to assign, say, only three years of opportunity cost to primary education (although it is rare for authors to have actually done this). But when using the basic earnings function method, foregone earnings are automatically imputed to the rate of return calculation for the full length of one's schooling I It is noted that in the extended (dummy) specification each education coefficient has to be related to the one referring to the previous educatioTlal level and divided by the number of years of incremental years of schooling separating the two levels in order for the result to be interpreted as a rate of return. cycle. Hence such estimates grossly underestimate the average rate of return to schooling. Of course in the extended earnings function it is easy to allow for differential duration of opportunity costs by assigning one, two, or three years of foregone earnings to primary school graduates. Finally, Dougherty and Jimenez (1991) have rightly pointed out that the above specification imposes the wrong age-earnings profile to young workers, thus biasing the rate of return calculation, especially for primary education. But the earnings function method has gained popularity because its ease of estimation. III. Update Scope and Sources Given the growth of the literature, the compilation of returns to education has become untractable. For example, rates of return have been estimated for such diverse groups as mainland Chinese working in Hong Kong (Chung 1989), or Mexican Americans and their Anglo counterparts who graduated from Pan American University (Raymond and Sesnowitz, 1983). The selection of the results that follow is based on whether the author(s) of an original work has(ve) reported tl returns to education based on any one of the standard methodologies described above. This has eliminated works that (a) even having "retums to education" in their title (such as Suarez 1987, Stelcner, Arriagada and Moock 1987), the 6 reported results do not allow a ready estimation of the returns to education; (b) works that have included too many variables in the fitted earnings function, other than human capital variables, and have biased the returns to education reporting earnings functions only within occupations, (e.g., Monson, 1979) or even within levels of schooling, (Newman, 1991) and thus artificially biasing downwards the retums to education -- a point made by Becker nearly twenty years ago and still ignored by many authors (see Becker, 1964); and (c) works that have wrongly reported the returns to primary education by tacitly assigning foregone earnings to those aged 6, 7 and 8 years old (such as Glewwe, 1991). Preference has been ,iven to reporting returns based on the "full method". The material is organized into two sets of tables. First, the Annex contains master tables of the latest rate of return evidence for individual countries, formatted according to different dimensions representing issues in the literature. Text tables provide only cross- country averages along these dimensions. Given the large nuinber of sources, only new citations are given in the references section. When "see Psacharopoulos (1985)" is listed as a source of a rate of return estimate, the reader should consult that earlier publication in order to trace the true original reference containing the cited estimate. 7 IV. World Patterns Table 1 shows that among the three main levels of education, primary education continues to exhibit the highest social profitability in all world regions. The lowest social rate of return average referring to higher education in OECD countries (8.7 percent) is close to the (long term) opportunity cost of capital. This means that the profitability of human and physical capital, at the margin, has reached virtual equilibrium. As depicted in Figure 1, private returns are considerably higher than social returns because of the public subsidization of education. The degree of public subsidy increases with the level of education considered, which has regressive policy implications. Table I Returns to Investment in Education by Level (percent) Full Method, Latest Year, Regional Averages Social Private Country Prim. Sec. Higher Prim. Sec. Higher Sub-Saharan Africa 24.3 18.2 11.2 41.3 26.6 27.8 Asia* 19.9 13.3 11.7 39.0 18.9 19.9 Europe/Middle East/North Africa* 15.5 11.2 10.6 17.4 15.9 21.7 Latin America/Caribbean 17.9 12.8 12.3 26.2 16.8 19.7 OECD 14.4 10.2 8.7 21.7 12.4 12.3 World 18.4 13.1 10.9 29.1 18.1 20.3 * Non-OECD. Source: Table A-1. 8 Rate of Return (S) 35 - ClPrivate M Social 30 25 20~ ~ ~~~~~~~~~~~2. 18 ~ ~~184 - - 20 10 - Primary Secondary Highor Figuire1. Returns to Investment in Educadon by Level, Latest Year Rate of Return (S) 14 0 Sub-Saharan Africa 13 *Itli, Amorica 12 11 10 0 a *0 Eurooo 4 Middlo Eat r * OECO 5 a r 8 0 tO 11 12 Years of Schoollng EiguIZra. Mincerian Returns and Mean Years of Schooling 9 Diminishing returns. As shown in Tables 2 and 3, and depicted in Figures 2, 3 and 4, social and private returns at all level largely decline by the level of the country's per capita income. This is another reflection of the law of diminishing returns to the formation of human capital at the margin. The same overall declining pattern is detected (although less neatly) regarding the Mincerian returns to education (Table 4 and Figure 5). 10 Social Rate of Return (%) 30 M Primary a Socondary O Higher 18~~~~~~~~~~~~~1 0 J 299 2.403 4.184 13,100 Per Caopta Income (S) Figure. Social Returns to Investment in Education by Income Level Private Rate of Return A) 40 Primary *~Secondary Higher 30 30 24 1 I Lt21 20 13 10 299 2.403 4*184 13.100 Per Caoita Income FigumA. Private Returns in Investment in Education by Income Level 11 Rate of Return (%) 13 12 is Lo 1>°ooe Ioncm 10 8 * Uoner Middle Income ligh /ncomeo 0 2000 4000 8000 8000 10000 12000 14000 Per Capita Income (S) Figure 5. Mincerian Retums by Income Level 12 Table 2 Returns to Investment in Education by Level (percent) Full Method, Latest Year Averages by Per Capita Income Group Mean Country per Social Private Capita Prim. Sec. Higher Prim. Sec. Higher (US$) Low Income ($610 or less) 299 23.4 15.2 10.6 35.2 19.3 23.5 Lower Middle Income (to $2,449) 1,402 18.2 13.4 11.4 29.9 18.7 18.9 Upper Middle Income (to $7,619) 4,184 14.3 10.6 9.5 21.3 12.7 14.8 High Income ($7,620 or more) 13,100 n.a. 10.3 8.2 n.a. 12.8 7.7 World 2,020 20.0 13.5 10.7 30.7 17.7 19.0 Source: Table A-I. Table 3 The Coefficient on Years of Schooling: Mincerian Mean Rate of Return Country Mean Years Coefficient Per Capita of (percent) Income Schooling (US$)) Low Income ($610 or less) 301 6.4 11.2 Lower Middle Income (to $2,449) 1,383 8.4 11.7 Upper Middle Income (to $7,619) 4,522 9.9 7.8 High Income ($7,620 or more) 13,699 10.9 6.6 World 3,665 8.7 10.1 Source: Table A-2. 13 Table 4 The Coefficient on Years of Schooling: Mincerian Rate of Return Regional Averages Country Years of Coefficient Schooling (percent) Sub-Saharan Africa 5.9 13.4 Asia* 8.4 9.6 Europe/Middle East/North. Africa* 8.5 8.2 Latin America/Caribbean 7.9 12.4 OECD 10.9 6.8 World 8.4 10.1 * Non-OECD. Source: Table A-2. Returns over time. The declining pattern of the retums to education is also observed over time (Tables 5 and 6) where all social returns have declined between 2 and 8 percentage points on average in a 15 year period. It is of interest, however, that the returns to higher education have increased by about 2 percentage points during this period, i.e. university graduates were able not only to maintain their position in, but also increase, the appropriation of public funds. Table Change in the Returns to Investment in Education over a 15 Year Period: Full Method (Percentage Points) Educational Level Social Private Primary -8.2 -2.0 Secondary -5.7 -1.9 Higher -1.7 1.7 Source: Table A-9. 1. 14 Table 6 Change in the Returns to Education over a 12 Year Period: Mincerian Method Returns to Education (% points) -1.7 Mean Years of Schooling 2.4 Source: Table A-10.1 Males vs. females. Table 7 and Figure 6 confirm that, overall, the returns to female education are higher than those for males. Individual levels of education show a more mixed pattern. One issue in the literature regarding the retums to education for men relative to women is whether female estimates have been adjusted for selectivity bias, i.e. by taking into account the prior decision of a woman on whether to participate or not in the labor force (see Heckman, 1979). As summarized in Table 8 (based on ^2 case studies in Latin American countries using the same correction methodology, Psacharopoulos and Tzannatos, 1992a, 1992b), selectivity correction does not in fact influence much the rate of return estimate for females, and the returns experienced by females, whether corrected or not, exceed those for males by more than one percentage point. ;ato of Return (S) 10 4 2 Mon WeM.i Fiur Mincerian Returns to Education by Gender 15 Table 7 Retuirns to Education by Gender Educational Level Men Women Primary 20.i 12.8 Secondary 13.9 18.4 Higher 13.4 12.7 Overall*' 11.1 12.4 !' Mincerian method. Source: Table A-3. Table 8 Selectivity Correction on the Returns to Education by Gender Selectivity Correction Males Females No 11.3 12.7 Yes 11.3 12.6 Source: Table A-4. Secondary school curriculum. Doubts have been repeatedly raised regarding the economic profitability of vocational education (for a review see Psacharopoulos, 1987). One type of vocational education that has been singled out as an issue, is the separate vocational/technical track of secondary schools (McMahon 1988). Table 9 (also depicted in Figure 7), confirms the earlier (counter-intuitive) finding that the retums to the academic/general secondary school track are higher than the vocational track. The difference between the profitability of the two subjects is more dramatic regarding the social returns because of the much higher unit cost of vocational/technical education. 16 What is often forgotten in vocational education discussions is that there exist strong education-training complementarities. Psacharopoulos and Velez (1992b), using Colombian data, found a strong positive interaction between training and years of formal education in determining earnings. They found that training really has an effect on earnings after a worker has 8 years of formal education. In a more macro exercise, Mingat and Tan (1988) examined the economics of training provided under 115 physical capital investments. They found that such training was particularly productive when a country's educational system is highly developed. According to their most conservative estimate, the rate of return to training can be of the order of 20 percent, if 50 percent of the country's adult population is literate. Rato of Return (sJ 14 12- 30norcl Voca tlonol Figure 7.Social Retumls to Secondary Education by Curriculum Type 17 Table 9 Returns to Secondary Education by Curriculum Type Curriculum Type Rate of Return Social Private Academic/General 15.5 11.7 Technical/Vocational 10.6 10.5 Source: Table A-5. Higher education faculty. Table 10 shows a large variation between the returns to higher education faculties, the lowest social returns being for physics, sciences and agronomy, and the highest private returns for engineering, law and economics. Table 10 Returns to Higher Education by Faculty Subject Social Private Agriculture 7.6 15.0 Soc. Science, Arts & Human. 9.1 14.6 Economics & Business 12.0 17.7 Engineering 17.1 19.0 Law 12.7 16.8 Medicine 10.0 17.7 Physics 1.8 13.7 Sciences 8.9 17.0 Source: Table A46. 18 Sector of employment. Table 11 (also depicted in Figure 8) shows that the retums to the private/competitive sector of the economy are higher for those who work in the public/non- competitive sector. Table 12 shows that the returns to the self-employment/unregulated sector of the economy are higher than the dependent employment sector. These finding lend support in using labor market eanings as a proxy for productivity in estimating the returns to education. Table 11 Returns to Eligher Education by Economic Sector (percent) Economic Sector Rate of Return Private 11.2 Public 9.0 Source: Table A-7. Rate of Return (%) 12- 14 12 Priveta,QII Eigu. Returns to Education by Sector of Employment 19 Table 12 Returns to Education in Self vs. Dependent Employment Employment Type Rate of Return Self Employment 10.8 Dependent Employment 12.2 Source: Table A-8. The sector of employment relates to the so-called, although now abated, labor market segmentation literature. Testing of this elusive hypothesis has continued in the 1980s. The difficultly in identifying labor market duality is due to the fact that scarce longitudinal data on how people with different levels of education move from low-pay to high-pay sectors on jobs are required. Cross-sectional data, the most widely available data type, are not suitable for testing this hypothesis. But even continuing on this tradition, Dabos and Psacharopoulos (1991) analyzed the earnings of Brazilian males in 1980 aid found sizeable returns to education across labor market "segments", especially among rural workers and the self- employed. This finding was upheld even after correcting for dependent variable selectivity bias regarding who enters a particular economic sector. If self-employment is defined as a distinct "sector" of the labor market, Blau (1986) using Malaysian data, rejected the hypothesis that the self-employed earn less than wage employees. Similarly, Speare and Harris (1986), using Indonesian data, found little segmentation between the modern and informal sectors. 20 V. Controversies Several critiques of the rate of return concept have been published during t!.e 1980s, rnany of them repeating points made in the nascent economics of education literature in the early 1960s, e.g., Klees (1986), Leslie (1899), Behrman and Birdsall (1987), Behrman (1987). On the issue of whether or not earnings really reflect productivity, Chou and Lau (1987) repeated the Jamison and Lau (1982) production function methodology for Thailand and upheld the results. They found that one additional year of schooling adds about 2.5 percent to farm output. Phillips and Marble (1986) fitted an agricultural production function using Guatemalan data and found that four years of education increase agricultural productivity. Lau, Jamison and Louat (1991) introduced education in an aggregate production function and found its effect varies considerably across countries and regions. In East Asia, for example, one additional year of education contributed over three percent to real GDP. Azhar (1991) fitted a wheat and rice production function in Pakistan and found that education enhances the utilization of existing inputs (worker effect or technical efficiency aspect). On the much debated in the seventies screening hypothesis, Katz and Ziderman (1980), using Israeli data, found strong screen.ng effects at work. But Cohn, Kiker and Oliveira (1987), using United States data, found no empirical support for the screening 21 hypothesis. Also, Boissiere, Knight and Sabot (1985) found strong support for the human capital hypothesis in explaining earnings differentials in Kenya and Tanzania. On the interactions between education, earnings and ability, Chou and Lau (1987) introduced Raven's progressive matrices as proxies for genetic ability in an agricultural production function in Thailand and found that the effect of education on farn productivity is upheld. Bound, Griliches and Hall (1986), using United States data, found no significant effect of ability on earnings. Psacharopoulos and Velez (1992a) in a study on Colombia introduced reasoning ability (measured by means of Raven's matrices) and the coefficient of years of schooling was reduced from 10.5 to 9.4 percent. Also Glewwe (1991), using the Raven matrices variable in an earnings function in Ghana, failed to register an effect different than zero in the earnings determination process. Willis (1986), after an exhausting review of the literature, concluded that the complexity of the econometric and theoretical issues surrounding the ability-education-earnings nexus is such that it is difficult to reach any firm conclusion about the size or even the direction of the bias. The crux of the matter is that the undisputable and universal positive correlation between education and earnings can be interpreted in many different ways. 4 As Ashenfelter (1991) put it, the causation issue on whether education really affects earnings can only be answered with experimental data generated by exposing at random different people to various amounts of education. Given the fact that moral and pragmatic considerations prevent the I For a superb treatise in this respect, see Blaug (1972). 22 generation of such pure data, researchers will have to make do with indirect inferences or natural experiments. Three recent papers report the results of using natural experiments in order to asses the effect of selectivity bias on the returns to education. One example of such a natural experiment was carried out with identical twins who were separated early in life and received different amounts of education (as to control for differences in genetic ability). Ashenfelter and Krueger (1992) used such sample of twins and found no bias in the estimated returns to schooling. On the contrary, they found that measurement errors in self-reported schooling differences result in a substantial underestimation from conventionally estimated returns to investment in education. Another natural experiment refers to the fact that many young people in the United States in the early seventies received more schooling than others as a result of the Vietnam drafting lottery. Those who were likely to be drafted enrolled in school in order to defer military service. By comparing the groups of those with more and less schooling among this cohort of workers, Angrist and Krueger (1992) found that a rate of return to the extra years of schooling was 10 percent higher than conventional rate of return estimates. The third natural experiment stems from compulsory school attendance laws. In the United States, those born early in a calendar year start school at an older age relative to those who are born later in the same year, and hence can leave school after completing less years of education. By comparing these two groups, Angrist and Krueger (1991) found a very similar rate of return to investment in education to the one conventionally estimated. 23 The issue of the returns to investment in the quality rather quantity of education continues to be the holly grail and research frontier in this field.5 Card and Krueger (1992) examined the effect of school quality on the returns to educa ion using United States 1980 census data. Quality was measured by the student-teacher ratio, the average term length and the relative pay of teachers. They found that persons educated in states with higher quality schools exhibit higher returns to additional years of schooling. For example, a decrease in class size from 30 to 25 pupils per teacher is associated with a 0.4 percentage point increase in the returns to education. In another paper, Card and Krueger (1992) found that improvements in the quality of education blacks receive explain 20 percent of the narrowing of the black-white earnings gap in the United States between 1960 and 1980. Several books and papers have appeared in the literature in the last 15 years claiming that there might be something called "overeducation" in the labor markets, in the United States and in other countries. Different authors have defined it differently.6 For example, Freeman (1976) defined it as a falling private rate of return to college education in the United States. Rumberger (1981, 1987) cites unrealized expectations, the discrepancy between the educational attainment of workers and the educational requirements of their jobs, or simply "surplus schooling". Surplus schooling is defined as the number of years completed minus years of schooling required by the job, the latter determined from the 5 See Solmon (1985) for a useful review of the concepts involved. 6 For a review see Patrinos (1992), and for a recent exchange Cohn (1992), Gill and Solberg (1992) and Verdugo and Verdugo (1992). 24 Dictionary of Occupational Titles, or as subjectively reported by the worker. Using this definition, Rumberger finds that the incidence of overeducation in the US increased between 1960 and 1976. Beyond Cohn's (1992) challenge to the surplus schooling thesis, the notion of overeducation might be mechanical and mislead policy. From what point of view can there really be "overeducation"? From the private point of view, one can talk about rates of return below a market level. But if people are willing to invest in their education, in spite of low private returns, they must be deriving some value other than monetary. And if they finance their own education, this is a zero sum game from the point of view of social policy. These people are not overeducated in any bureaucrat's sense. They are rightly educated according to themselves. One cannot deny people's chance to undertake more education for probgkle social advancement, or even sheer consumption, if people pay for their own education. From the soia view point there would clearly be a problem if public resources were used to finance a level or type of education that has a social rate of return below the opportunity cost of capital, or if the extra social resources invested in someone's "surplus schooling" does not have a productivity counterpart. As shown above, this has not been demonstrated by any of the "overeducation" or screening literature. Also, as shown in the above intemational comparison, and in more detail for the United States (Kosters, 1990), the premium associated with university studies has been increasing over time. Thus it might be myopic to use norms of years of schooling for specific occupations and say that, because 25 he/she mainly types, a secretary does not need more than secondary education; or because farmers mainly deal with the soil, they do not need to have sclhooling beyond primary education. Another debated issue in the literature has been the role of socioeconomic backgrounid. Card and Krueger (1990) find that, holding school quality constant, there is no evidence that parental income or education affects state-level retums to education. But Newman (1991), using Israeli data found that the returns to schooling are higher to those coming from more favorable socioeconomic backgrounds. Of course education and health interact. For example, Gomes-Neto and Hanushek (1992) find that in Northeast Brazil good student health (defined as good nutrition and visual acuity) lead to better education performance in terms of achievement and promotion. VI. Conclusion The results of this update are fully consistent with and reinforce earlier patterns. Namely, primary education continues to be the number one investment priority in developing countries, educating females is marginally more profitable than educating males, the academic secondary school curriculum is a better investment than the technical/vocational track, and the returns to education obey the same rules as investment in conventional capital, i.e. they decline as investment is expanded. 26 Regarding equity considerations, the update has upheld the strong position of university graduates in maintaining their private advantage by means of public subsidization at this level of education. 27 REFERENCES Al-Qudsi, S. S. "Earnings Differences in the Labor Market of the Arab Gulf States: The Case of Kuwait." Journal of Development Economics 18 (1985): 119-32. Al-Qudsi, S. S. "Returns to Education, Sectoral Pay Differentials and Determinants in Kuwait." Economics of Education Review 8, no. 3 (1989): 263-76. Anderson, L. "Rates of Return of Education for Females in El Salvador." Social an Economic Studies 37, no. 3 (1988): 279-87. Angrist, J. D. and Krueger, Alan B. "Does Compulsory School Attendance Affect Schooling and Earnings?" The Quarterly Journal of Economics 106, no. 4 (November 1991). Angrist, J. D. and Krueger, Alan B. "Estimating the Payoff to Schooling Using the Vietnam- Era Draft Lottery." Working Paper No. 4067. National Bureau of Economic Research, 1992. Antonelli, G. "Income Distribution and Labour Factor Quality: Models and Applications at a Regional Level." Human Resources. Employment and Development. Proceedings of the Sixth World Congress of the International Economic Association in Mexico City, ed. B. Weisbrod and H. Hughes. Vol. 3 (1980): 167-77. Arends, M. "Female Labor Force Participation and Earnings in Guatemala." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992a. Arends, M. "Female Labor Force Participation and Wages: A Case Study of Panama." In Women's Employment and Pay in Latin America: Country Case Studie, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., i992b. Arends, M. "Women's Labor Force Participation and Earnings: The Case of Uruguay." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992c. Ashenfelter, Orley. "How Convincing is the Evidence Linking Education and Income?" Worldng Paper No. 292. Industrial Relations Section, Princeton University, November 1991. Ashenfelter, Orley and Krueger, A., "Estimates of the Economic Return of Schooling from a New Sample of Twins." Working Paper No. 4143. National Bureau of Economic Research, Inc., 1992. 28 Behrman, J. R. "Schooling and Other Human Capital Investments: Can the Effects be Identified?" Economics of Education Review 6, no. 3 (1987): 301-5. Behrman J. R. and Birdsall, N. "Comment on Returns to Education: A Further International Update and Implications." The Journal of Human Resources 22, no. 4 (Fall 1987): 603-606. Behrman, J. R. and Deolalikar, A. B. "School Repetition, Dropouts, and the Rates of Return to Schooling: The Case of Indonesia." Oxford Bulletin of Economics and Statistics 53, no. 4 (1991): 467-480. Behrman, J. R., Wolfe, B. L. and Blau, D. M. "Human Capital and Earnings Distribution in a Developing Country: The Case of Prerevolutionary Nicaragua." Economic Development and Cultural Change 34, no. 4 (October 1985): 1-29. Bellew, R. and Moock, P. "Vocational and Technical Education in Peru." Economics of Education Review 9, no. 4 (1990): 365-75. Bennell, P. and Malaba J. "Updating Rates of Return to Education: Zimbabwe in the Late 1980s." Department of Economics, University of Zimbabwe. Mimeo 1991. Bevc, M. "Education as a Factor of Labour Force Quality and Analysis of Economic Efficiency of Investment in Yugoslavia by Republics and Autonomous Provinces." Mimeo. Ljubljana, 1989. Bevc, M. Ekonomski Pomen Izobrazevania (The Economic Value of Education). Radovljica, Slovenia: DIDAKTA, 1991. Blau, D. M. "Self-employment, Earnings and Mobility in Peninsular Malaysia." World Development 14, no. 7 (1986): 839-52. Boissiere, M., Knight, J. B. and Sabot, R. H. "Earnings, Schooling, Ability, and Cognitive Skills." American Economic Review 75 (1985): 1016-30. Bonattour, Z. S. "Economics of Education: Tackling the New Policy Issues." IREDU International Conference on The Economics of Education, Dijon, June 23-25, 1986. Bound, J., Griliches Z. and Hall, B. H. "Wages, Schooling and IQ of Brothers and Sisters: Do the Family Factors Differ?" International Economic Review 27, no. 1 (February 1986): 77-105. Byron, R. P. and Manaloto, E. Q. "Returns to Education in China." Economic Development and Cultural Change 78, no. 4 (July 1990): 784-96. 29 Byron, R. P. and Takahashi, H. "An Analysis of the Effect of Schooling, Experience and Sex on Earnings in the Government and Private Sectors of Urban Java." Bulletin of Indonesian Economic Studies 25, no. 1 (April 1989): 105-17. Card, D. and Krueger, Alan B. "Does School Quality Matter? Returns to Education and the Characteristics of Public Schools in the United States." Journal of Political Economy, 100, no. I (1)92a): 1-39. Card D. and Krueger, Alan B. "School Quality and Black-White Relative Earnings: A Direct Assessment." The Ouarterly Journal of Economics 107, no. I (February 1992b). Chapman, B. J. and Harding, J. R. "Sex Differences in Earnings: An Analysis of Malaysian Wage Data." The Journal of Development Studies 21, no. 3 (April 1985): 362-76. Chou E. C. and Lau, L. J. "Farmer Ability and Farm Productivity: A Study of Farm Households in the Chiangmai Valley, Thailand, 1972-1978." Discussion Paper 62. Education and Training Department, The World Bank, Washington, D.C., February 1987. Chung, Y-P. "Economic Returns on Education Received in Mainland China fcr Workers Employed in a Free Market Economy." Issues and Studies 25, no. 11 (November 1989): 126-39. Cohen, S. I. "A Cost-Benefit Analysis of Industrial Training." Economics of Education Review 4, no. 4 (1985): 327-39. Cohn E., Kiker B. F. and de Olivera, M. M. "Further Evidence on the Screening Hypothesis." Economics Letter 25 (1987): 289-94. Cohn E. "The Impact of Surplus Schooling on Earnings". The Journal of Human Resources.XXVII.4, 1992: 679-682. Cole, R. E. "Rates of Return to Education in Zambia." Department of Population, Manpower Planning and Research, Zambian National Commission for Development Planning, 1988. Corbo, V. and Stelcner, M. "Earnings Determination and Labour Markets." JournaL of Development Economics 12 (1983): 251-66. Cousineau, J-M. and Vaillancourt, F. "Investment in University Education, Regional Income Disparities and Regional Development." In Still Living Together, ed. William J. Coffey and Mario Polese, 357-79. The Institute for Research on Public Policy, 1987. 30 Cox, D. and Psacharopoulos, G. "Female Participation and Earnings, Venezuela, 1987." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Dabos, M. and Psacharopoulos, G. "An Analysis of the Sources of Earnings Variation Among Brazilian Males." Econonmics of Educat'cn Review 10, no. 4 (1991). Datta, R. C. "Schooling, Experience and Earnings: An Empirical Analysis." Margin, January 1985: 60-73. Davis, D. "Manpower Planning, Rate of Return Analysis, and the University Medical Schools: The Case of Australia." Higher Education 6 (1977): 301-11. Demetriades, E. L. and Psacharopoulos, G. "Educational Expansion and the Returns to Education: Evidence from Cyprus." Intermational Labour Review 126, no. 5 (September-October 1987): 597-602. Dougherty, C. R. S. and Jimenez, E. "The Specification of Earnings Functions: Tests and Implications." Economics of Education Review 10, no. 2 (1991): 85-98. Eaton, P. "The Quality of Schooling: Comment." The American Economic Review 75, no. 5 (December 1985): 1195-1201. Enaohwo, 0. J. and Osakwe, H. 0. "An Analysis of the Private Rate of Return to Vocational Nursing Education in Nigeria." Economics of Education Review 5, no. 1 (1986): 77-81. Fiszbein, A. and Psacharopoulos, G. "A Cost Benefit Analysis of Educational Investment in Venezuela, 1989." A View from LATHR, no. 26. The World Bank, Washington, D.C., November 1991. Freeman, R. B. The Overeducated American. New York: Academic Press, 1976. Gannicott, K. The Evaluation of Human Caital in Papua New Guin . University of New South Wales, 1986. Gannicott, K. "The Economics of Education in Asian-Pacific Developing Countries." Asian- Pacific Economic Literature 4, no. I (March 1990): 41-64. Gill, I. A. "Is There Sex Discrimination in Chile? Evidence from the CASEN Survey," In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992a. 31 Gill, I. A. "Is There Sex Discrimination in Peru? Evidence from the 1990 Lima Living Standards Survey." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992b. Gill, A. M. and Solberg, E. J., "Surplus Schooling and Earnings: A Critique," Journal of Human Resources, 27 (4), 1992: 683-689. Gindling, T. H. "Labor Market Segmentation and the Determination of Wages in the Public, Private-Formal, and Informal Sectors in San Jose, Costa Rica." Economic Development and Cultural Change 39, no. 3 (April 1991): 585-605. Glennerster H. and Low, W. "Education and the Welfare State: Does it Add Up?" In The State of Welfare. Oxford: Clarendon Press, 1990. Glewwe, P. "Schooling, Skills, and the Returns to Government Investment in Education." Working Paper no. 76. LSMS, The World Bank, Washington, D.C., 1991. Gomes-Neto, Joao Batista and Hanushek, Eric A. "Health and Schooling: Evidence and Policy Implications for Developing Countries." Working Paper No 306. Rochester Center for Economic Research, University of Rochester, 1992. Gomez-Castellano, L., and Psacharopoulos, G. "Earnings and Education in Ecuador: Evidence from the 1987 Household Survey." Economics of Education Review 9, no. 3 (1990): 219-27. Grootaert, C. "Returns to Formal and Informal Vocational Education in Cote d'Ivoire: The Role of the Structure of the Labor Market." Economics of Education Review 9, no. 4 (1990): 309-19. Heckman, J. J. "Sample Selection as a Specification Error". Econometrica, Vol. 47, No. 1 (1979). pp. 153-161. Hill, M. A. "Female Labor Force Participation in Developing and Developed Countries - Consideration of the Informal Sector." Review of Economics and Statistics 65 (August 1983): 459-68. Hinchliffe, K. "The Returns to Vocational Training in Botswana - Research Note." Economics of Education Review 9, no. 4 (1990): 401-4. Hungerford, T. and Solon, G. "Sheepskin Effects in the Returns to Education." The Review of Economics and Statistics 1986:175-7. 32 Hussain, S. and Psacharopoulos, G. "The Returns to Education in the Philippines, 1988." Mimeo. The World Bank, Washington, D.C., 1992. Indart, E. S. "La Rentabilidad de la Educacion en el Uruguay." Universidad de la Republica, Uruguay, 1981. Jakubson, G. and Psacharopoulos, G. "The Effect of Education on Female Labor Force Participation and Earnings in Ecuador." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Jamison, D. T. and van der Gaag, J. "Education and Earnings in The People's Republic of China." Economics of Education Review 6, no. 2 (1987): 161-6. Jarousse, J. P. "Une Mesure de la Rentabilite des Diplom6s entre 1969 et 1976." Consommation 2 (1985/1986): 29-41. Jarousse, J. P. and Mingat, A. "Le Role des Secteurs Priv6 et Public de l'Emploi dans la Structuration des Salaries en France." Presentation all ler Colloque International de la Revue, Lyon, December 15-16, 1986. Jarousse, J. P. and Mingat, A. "L'Enseignement Technique et Professionnel: Une Evaluation par le Marche. " IREDU, 1988. Jimenez, E., Kugler, B. and Horn, R. "National In-Service Training Systems in Latin America: An Economic Evaluation of Colombia's SENA." World Bank Reprint Series no. 446. The World Bank, Washington, D.C., 1989. Also published in Economic Development and Cultural Change 37, no. 3 (April 1989): 595-610. Katz, E. and Ziderman, A. "On Education, Screening and Human Capital." Economics Leiters 6 (1980): 81-8. Khan, S. R. and Irfan, M. "Rates of Return to Education and the Determinants of Earnings in Pakistan." The Pakistan Development Review 24, nos. 3 & 4 (1985): 671-83. Khandker, S.R. "Women's Labor Market Participation and Male-Female Wage Differences in Peru." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Kiker, B. F., and Santos, M. C. "Human Capital and Earnings in Portugal." Economics of Education Review 10, no. 3 (1991): 187-203. 33 King, E. M. "Does Education Pay in the Labor Market? The Labor Force Participation, Occupation, and Earnings of Peruvian Women." Working Paper no. 67. LSMS, The World Bank, Washington, D.C., 1990. Klees, Steven J. "Planning and Poiicy Analysis in Education: What Can Economics Tell Us?" Comparative Education Review 30, no. 4 (November 1986): 574-607. Knight, J. B. and Sabot, R. H. "The Rate of Return on Educational Expansion." Economics of Education Review 6, no. 3 (1987): 255-62. Komenan A. G. "Education, Experience et Salaires en Cofe d'lvoire: Une Analyse a Partir de l'Enquete de Main d'Oeuvre de 1984." Discussion Paper no. 99. Education and Training Department, The World Bank, Washington, D.C., June 1987. Kosters, Marvin H. "Schooling, Work Experience, and Wage Trends." American Economic Review (May 1990) Vol. 80 (2). Kugler B. and Psacharopoulos, G. "Earnings and Education in Argertina: An Analysis of the 1985 Buenos Aires Household Survey." Economics of Education Review 8, no. 4 (1989): 353-65. Lambropoulos, H. and Psacharopoulos, G. "Educational Expansion and Earnings Differentials in Greece." ' .zmparative Education Review 36, no. 1 (February 1992). Lau, L. J., Jamison, D. T. and Louat, F. F. "Education and Productivity in Developing Countries: An Aggregate Production Function Approach." Working Paper no. 612. Policy, Research and External Affairs, The World Bank, Washington, D.C., March 1991. Liu, Pak-wai. "Human Capital and Inequality in Singapore." Economic Development and Cultural Change 29, no. 2 (January 1981): 275-93. Lorenz, W. and Wagner, J. "A Note on Returns to Human Capital in the Eighties: Evidence from Twelve Countries." Working Paper no. 54. The Luxembourg Income Study, University of Hannover, July 1990. Lucas, R. E. B. and Stark, 0. "Motivations to Remit: Evidence from Botswana." Journal of Political Economy 93, no. 5 (1985): 901-18. MacKinnon Scott, K. "Women in the Labor Force in Bolivia: Participation and Earnings." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992a. 34 MacKinnon Scott, K. "Female Labor Force Participation and Earnings: The Case of Jamaica." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992b. Magnac, T. "Female Labour Market Participation and Wages in Colombia." In Women's Employment and Pay in Latin Anierica: Cour,tr Case SLudies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank. Washington, D.C., 1992. McGavin, P. A. "Policy Evaluation of Investment in Ecucation: A Papua New Guinea Study" Economics of Education Review 10, no. 3 (1991): 213-26. McMahon, W. W. "Relative Returns to Human and Physical Capital in the U.S. and Efficient Investment Strategies." Economics of Education Review 10, no. 4 (1991). McMahon, W. W. and Boediono. "Universal Basic Education: An Overall Strategy of Investment Priorities for Economic Growth." Economics of Education Review 11, no. 2 (1992): 137-51. McMahon, W. W. and Jung, H. J. "Vocational and Technical Education in Indonesia: '± neoretical Analysis and Evidence on Rates of Return." Faculty Working Paper no. 89-1582. College of Commerce and Business Administration, University of Illinois, Urbana-Champaign, July 1989. McMahon, W. W., Jung, J. H. and Boediono. "Vocational and Technical Education in Development: Theoretical Analysis of Strategic Effects on Rates of Return." Economics of Education Review 11, no. 3 (1992): 181-94. McNabb, R. and Richardson, S. "The Relationship Between Earnings, Education and Experience: Evidence for Australia." Discussion Paper no. 8605. Department of Economics, University College, Cardiff, 1986. McNabb, R. and Richardson, S. "Earnings, Education and Experience: Is Australia Different?" Australian Economic Papers 28 (June 1989): 57-75. Mingat, A. and Eicher, J. C. "Higher Education and Employment Markets in France." Higher Education 11 (1982): 211-20. Mingat, A. and Jarousse, J-P. "L'Analyse des Couts et du Financement de l'Education au Senegal." IREDU, July 1985. Mingat, A. and Tan, J-P. "The Economic Returns to Investment in Project-Related Training: Sorne Empirical Evidence." International Review of Education 34, no. 2 (1988): 225- 40. 35 Mitch, D. "Underinvestment in Literacy? The Potential Contribution of Government Involvement in Elementary Education to Economic Growth in Nineteenth-Century England." Journal of Economic History 44, no. 2 (June 1984): 557-66. Mlonson, T. D. "Educational Returns in the Ivory Coast." The Journal of Developing Areas 13 (July 1979): 415-30. Moock, P. and Bellew, R. "Vocational and Technical Education in Peru." Working Paper no. 87. Policy, Planning, and Research, The World Bank, October 1988. Navarro, !. C. "Alternacivas de Financiamiento Para la Educacion Superior Venezolana." Universidad Central de Venezuela, April 1986. Ng, Chu Y. "Female Labor Force Participation and Gender Earnings Differentials in Argentina." In Women's Emplo%ment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Patrick, G. F. and Kehrberg, E. W. `Costs and Returns of Education in Five Agricultural Areas of Eastern Brazil." Ameri'can Jourral of Agricultural Economics May 1973:145-53. Patrinos, Harry "Education, Earnings and Inequality in Greece." Doctoral Thesis, Institute of Development Studies, University or Sussex, 1992. Paul, J-J. "Technical Secondary Education in Togo and Cameroon - Research Note." Economics of Education Review 9, ro. 4 (1990): 405-9. Phillips, J. M. "Schooling and Agricultural Production: Evidence from the Dominican Republic." Presentation at Global De.e!opment Conference, College Park, MD, September 13, 1986. Phillips, J. M. and Marble, R. P. "Farmer Education and Efficiency: A Frontier Production Function Approach." Economics of Eduication Review 5, no. 3 (1986): 257-64. Psacharopoulos, G. Returns to Education: An lrnernational Comparison. San Francisco: Elsevier, Jossey-Bass, 1973. Psacharopoulos, G. "Returns to Education: An Updated International Comparison." Comparative Education 17 (1981): 321-41. Psacharopoulos, G. "Returns to Education: A Further International Update and Implication." The Journal of Human Resources 20, no. 4 (1985): 583-97. 36 Psacharopoulos, G. "To Vocationalize or Not to Vocationalize? That is the Curriculum Question." International Review of Education 33 (1987): 187-211. Psacharopoulos, G. and Steier, F. "Education and the Labor Market in Venezuela, 1975- 1984." Economics of Education Review 7, no. 3 (1988): 321-32. Psacharopoulos, G. and Alam, A. "Earnings and Education in Venezuela: An Update from the 1987 Household Survey." Economics of Education Review 10, no. 1 (1991): 29- 36. Psacharopoulos, G. and Arriagada, A.M. "Earnings and Education Among Self-Employed Males in Colombia." Bulletin of Latin American Research 10, no. 1 (1991). Psacharopoulos, G. "Educational Investment Priorities in Mexico." Latin American Technical Human Resources Division, The World Bank, Washington, D.C. Mimeo. April 1991. Psacharopoulos, G. and Tzannatos, Z., Women's Employment and Pay in Latin America: Overview and Methodology. The World Bank, Washington, D.C., 1992a. Psacharopoulos, G. and Tzannatos, Z., eds. Women's Employment and Pay in Latin America: Country Case Studies. The World Bank, Washington, D.C., 1992b. Psacharopoulos, G. and Velez, E. "Schooling, Ability and Earnings in Colombia, 1988." Economic Development and Cultural Change 40, no. 3 (April 1992a): 629-43. Psacharopoulos, G. and Velez, E. "Does Training Pay Independent of Education? Some Evidence from Colombia" International Journal of Educational Research 17, no. 6 (1992b): 581-91. Psacharopoulos, G. and Ng, Y. C., "Earnings and Education in Latin America: Assessing Priorities for Schooling Investments", WPS Series No. 1056, The World Bank, 1992. Ram, R. and Singh, R. D. "Farm Households in Rural Burkina Faso: Some Evidence on Allocative and Direct Return to Schooling, and Male-Female Labor Productivity Differentials." World Development 16, no. 3 (1988): 419-24. Ratkovic, M. Efikasnost Investiranja u Obrazovanje. Institut Ekonomskih Nauka - Ekonomika, Beograd, 1983. Raymond, R. and Sesnowitz, M. "The Rate of Return to Mexican Americans and Anglos on an Investment in a College Education." Economic Inquiry 21, no. 3 (July 1983): 400- 11. 37 Rumberger, Russell W. "The Impact of Surplus Schooling on Productivity and Earnings." Journal of Human Resources 22 (1): 24-50 1987. Rumberger, Russell W. "Overeducation in the U. S. Labor Market. New York: Praeger, 1981. Ryoo, J-K. "Changes in Rates of Retum to Education Over Time: The Case Study of Korea." Ph.D. diss., Stanford University, September 1988. Sahn D. E. and Alderman, H. "The Effects of Human Capital on Wages, and the Determinants of Labor Supply in a Developing Country." Journal of Development Economics 29 (1988): 157-83. Schultz, T. P. "Education Investment and Returns." In Handbook in Development Economics, ed. H. Chenery and T. N. Srinivasan. Vol. 1. North-Holland, 1988. Shabbir, T. "Sheepskin Effects in the Returns to Education in a Developing Country." The Pakistan Development Review 30, no. 1 (Spring 1991): 1-19. Shortlidge, R. L., Jr. "The Labor Market for Agricultural Graduates in India: A Benefit-Cost Case Study of G.B. Pant University of Agriculture and Technology." Occasional Paper no. 69. Department of Agricultural Economics, Comell University, April 1974. Singh, Ram D. "Underinvestment, Low Economic Returns to Education, and the Schooling of Rural Children: Some Evidence from Brazil." Economic Development and Cultural Change 40, no. 3 (1992): 645-64. Solmon, L. C. "Quality of Education and Economic Growth." Economics of Education Review 4, no. 4 (1985): 273-90. Speare, A., Jr., and Harris, J. "Education, Earnings, and Migration in Indonesia." The Journal of Developing Areas 79 (1986): 223-44. Stager, D. A. A. Focus on Fees: Alternative Policies for University Tuition Fees. Council of Ontario Universities, July 1989. Steele, D. "Women's Participation Decision and Earnings in Mexico." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Stelcner, M., Arriagada, A-M. and Moock, P. "Wage Determinants and School Attainment Among Men in Peru." Working Paper no. 38. LSMS, The World Bank, Washington, D.C., 1987. 38 Stelcner, M. et al. "Labor Force Behavior and Earnings of Brazilian Women and MIen." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Suarez-Berenguela, R. M. "Peru Informal Sector, Labor Markets, and Returns to Education." Working Paper no. 32. LSMIS, The WA'orld Bank, Washington, D.C., 1987. Tan, J-P. and Paqueo, V. "The Economic Returns to Education in the Philippines." International Journal of Educatiu-ial Development 9, no. 3 (1989): 243-50. Tannen, M. "Labor Markets in Nortlheast Brazil: Does the Dual Mlarket Apply?" Economic Development and Cultural Chan2e 39, no. 3 (April 1991): 567-83. Tenjo, J. "Labour Markets, Wage Gap and Gender Discrimination: The Case of Colombia." In Women's Employment and Pay in Latin America: Countrv Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Thailand, Office of the Prime Minister. "Costs and Contribution of Higher Education in Thailand." Educational Research Division, National Education Commission, Thailand, 1989. Tilak, J. B. G. "Education and Earnings: Gender Differences in India." International Journal of Development Planning Literature 5, no. 4 (1990): 131-39. Trotter G. J. "A Survey of Educational Facilities and Social Rates of Return to Education in the Durban Metropolitan Region." Report no. 1. Economic Research Unit, University of Natal, Durban, 1984. USAID (US Agency for International Development). "Indonesia: Education and Human Resources Sector Review." Washington, D.C., April 1986. USAID (US Agency for International Development). "Nepal: Education and Human Resources Sector Assessment." Washington, D.C., May 1988. Vaillancourt, F. "Private and Monetary Returns to Schooling in Canada." Working Paper no. 35. Economic Council of Canada, Ottawa, 1992. Vaillancourt, F. "The Returns to University Schooling in Canada." Canadian Public Policy - Analyse de Politiques 12, no 3 (1986): 449-58. Vaillancourt, F. and Henriques, I. "La Rentabilite des Etudes Collegiales." Recherches Sociographiques. (Also published in 1981 Census 27, no. 3 (1986): 481-93.) 39 van der Gaag, J. and Vijverberg, W. "Wage Determinants in Cote d'Ivoire: Experience, Credentials, and Human Capital." Economic Development and Cultural Change 37, no. 2 (January 1989): 371-81. Velez, E. and Winter, C. "Women's Labor Force Participation and Earnings in Colombia." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos, The World Bank, Washington, D.C., 1992. Verdugo, Richard and Verdugo, Naomi Turner "Surplus Schooling and Earnings". The Jounial of Human Resources. XXN'11.4, 1992 Vijverberg, W. P. M. "Unbiased Estimates of the Wage Equation When Individuals Choose Among Income Earning Activities - NMalaysia." Center Discussion Paper no. 429. Yale University, December 1982. Wagner, J. and Lorenz, W. "The Earnings Functions Test." Economic Letters 27 (1988): 95-99. Warke, T. W. "International Variation in Labor Quality." The Review of Economics and Statistics 1986:704-6. Wilson, R. A. "A Longer Perspective on Rates of Return." Scottish Journal of Political Economy 32, no. 2 (June 1985): 191-8. Winter, C. "Female Earnings, Labor Force Participation and Discrimination in Venezuela, 1989." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. Winter, C. and Gindling, T. H. "Women's Labor Force Participation and Earnings in Honduras." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. World Bank. Indonesia: Strategy for a Sustained Reduction in Poverty. A World Bank Country Study, 1991. Yang, H. "Female Labor Force Participation and Earnings Differentials in Costa Rica." In Women's Employment and Pay in Latin America: Country Case Studies, ed. G. Psacharopoulos and Z. Tzannatos. The World Bank, Washington, D.C., 1992. 40 Table A-1 Returns to Investment in Education by Level (percent) Full Method, Latest Year Social Private Country Year Prim. Sec. Higher Prim. Sec. Higner Soirce Argentina 1989 8.4 7.1 7.6 10.1 14.2 14 9 Psacharopoulos and Ng 1992) Australia 1976 16.3 8.1 21.1 See Psacharopoulos (1985) Auszria 1981 11.3 4.2 See Psacharopoulos (1985) Bahamas 1970 20.6 26.1 See Psacharopoulos (1985) Belgium 1960 17.1 6.7 21.2 8.7 See Psacharopoulos (1985) Bolivia 1989 9.3 7.3 13.1 9 8 8.1 16.4 Psacharopoulos and Ng (1992) Botswana 1983 42.0 41.0 15.0 99 0 76.0 38.0 See Psacharopoulos (1985) Brazil 1989 35.6 5.1 21.4 36 6 5.1 28.2 Psacharopoulos and Ng (1992) Canada 1985 10.6 4.3 20.7 8.3 Vaillancourt (1992), Table 7 Chile 1989 8.1 11.1 14.0 9 7 12.9 20.7 Psacharopoulos and Ng (1992) Colombia 1989 20.0 11.4 14.0 2? 7 14.7 21.7 Psacharopoulos and Ng (1992) Costa Rica 1989 11.2 14.4 9.0 12.2 17.6 12.9 Psacharopoulos and Ng (1992) Cyprus 1979 7.7 6.8 7.6 :5 4 7.0 5.6 See Psacharopoulos (1985) Denmark 1964 7.8 10.0 See Psacharopoulos (1985) Dominican Rep. 1989 S5 1 15.1 19.4 Psacharopoulos and Ng (1992) Ecuador 1987 14.7 12.7 9.9 i7 1 17.2 12.7 Psacharopoulos and Ng (1992) El Salvador 1990 16.4 13.3 8.0 : S 9 14.5 9.5 Psacharopoulos and Ng (1992) Ethiopia 1972 20.3 18.7 9.7 35 0 22.8 27.4 See Psacharopoulos (1985) France 1976 14.8 20.0 Jarousse (1985/86), p.37 Gernany 1978 6.5 10.5 See Psacharopoulos (1985) Ghana 1967 18.0 13.0 16.5 's 5 17.0 37.0 See Psacharopoulos (1985) Great Britain 1978 9.0 7.0 I1.O 23.0 See Psacharopoulos (1985) Greece 1977 16.5 5.5 4.5 '0 0 6.0 5.5 See Psacharopoulos (1985) Guatemala 1989 3-3 8 17.9 22.2 Psacharopoulos and Ng (1992) Honduras 1989 18.2 19.7 18.9 '0 8 23.3 25.9 Psacharopoulos and Ng (1992) Hong Kong 1976 15.0 12.4 18.5 25.2 See Psacharopoulos (1985) India 1978 29.3 13.7 10.8 33 4 19.8 13.2 See Psacharopoulos (1985) Indonesia 1989 11.0 5.0 McMahon and Boediono (1992). Table 7 Iran 1976 15.2 17.6 13.6 21.2 18.5 See Psacharopoulos (1985) Israel 1958 16.5 6.9 6.6 27 0 6.9 8.0 See Psacharopoulos (1985) Italy 1969 17.3 18.3 See Psacharopoulos (1985) Ivory Coast 1984 25 7 30.7 25.1 Komenan (1987), p.25 Jamaica 1989 17.7 7.9 '0 4 15.7 Psacharopoulos and Ng (1992) Japan 1976 9.6 8.6 6.9 13 4 10.4 8.8 See Psacharopoulos (1985) Kenya 1980 10.0 16.0 Knight and Sabot (1987), p.260 Lesotho 1980 10.7 18.6 10.2 15 5 26.7 36.5 See Psacharopoulos (1985) Liberia 1983 41.0 17.0 8.0 99.0 30.5 17.0 See Psacharopoulos (1985) Malawi 1982 14.7 15.2 11.5 15 7 16.8 46.6 See Psacharopoulos (1985) Malaysia 1978 32.b 34.5 See Psacharopoulos (±985) Mexico 1984 19.0 9.6 12.9 21.6 15.1 21.7 Psacharopoulos and Ng (1992) Continued - 41 Table A-1 (continued) Social Private Country Year Prim. Sec. H.gher Prim. Sec. Higher Source Morocco 1970 50.5 10.0 13.0 See Psacharopoulos (1985) Ncpal 1982 15.0 21.7 USAID (1988), p Z-162 Netherlands 1965 5.2 5.5 8.5 10.4 See Psacharopoulos (1985) New Zealand 1966 19.4 13.2 20.0 14.7 See Psacharopoulos (1985) Nigeria 1966 23.0 12.8 17.0 30.0 14.0 34.0 See Psacharopoulos (1985) Norway 1966 7.2 7.5 7.4 7.7 See Psacharopoulos (1985) Pakistan 1975 13.0 9.0 8.0 20.0 11.0 27.0 See Psacharopoulos (1985) Panama 1989 5.7 21.0 21.0 Psacharopoulos and Ng (1992) Papua N.G. 1986 12.8 19.4 8.4 37.2 41.6 23.0 McCavin (1991), p.215 Paraguay 1990 20.3 12.7 10.8 23.7 14.6 13.7 Psacharopoulos and Ng (1992) Peru 1990 13.2 6.6 40.0 Psacharopoulos and Ng (1992) Philippines 1988 13.3 8.9 10.5 18.3 10.5 11.6 Hossain and Psacharopoulos (1992) Puerto Rico 1959 24.0 34.1 15.5 68.2 52.1 29.0 See Psacharopoulos (1985) Rhodesia 1960 12.4 See Psacharopoulos (1985) Senegal 1985 23.0 8.9 33 7 21.3 Mingat and larousse (1985), p.52 Sierra Leone 1971 20.0 22.0 9.5 See Psacharopoulos (1985) Singapore 1966 6.6 17.6 14.1 20.0 25.4 See Psacharopoulos (1985) Somalia 1983 20.6 10.4 19.9 59 9 13.0 33.2 See Psacharopoulos (1985) South Africa 1980 22.1 17.7 11.8 Trotter (1984), p.75 South Korea 1986 8.8 15.5 10.1 17.9 Ryoo (1988), p.158 Spain 1971 17.2 8.6 12.8 31 6 10.2 15.5 See Psacharopoulos (1985) Sri Lanka 1981 12.6 16.1 Sahn and Aldeman (1988), p.166 Sudan 1974 8.0 4.0 13 0 15.0 See Psacharopoulos (1985) Sweden 1967 10.5 9.2 10.3 See Psacharopoulos (1985) Taiwan 1972 27.0 12.3 17.7 50.0 12.7 15.8 See Psacharopoulos (1985) Tanzania 1982 5.0 See Psacharopoulos (1985) Thailand 1970 30.5 13.0 11.0 56 0 14.5 14.0 See Psacharopoulos (1985) Tunisia 1980 13.0 27.0 Bonattour (1986), p.15 Turkey 1968 8.5 24.0 26.0 See Psacharopoulos (1985) Uganda 1965 66.0 28.6 12.0 See Psacharopoulos (1985) Upper Volta 1982 20.1 14.9 21.3 See Psacharopoulos (1985) United States 1987 10.0 12.0 McMahon (1991), Tablel Uruguay 1989 21.6 8.1 10.3 '7 S 10.3 12.8 Psacharopoulos and Ng (1992) Venezuela 1989 23.4 10.2 6.2 36 3 14.6 11.0 Psacharopoulos and Ng (1992) Yemen 1985 2.0 26.0 24.0 10 0 41.0 56.0 USAID (1986), T.235 Yugoslavia 1986 3.3 2.3 3.1 14 6 3.1 5.3 Bevc (1989), p.6 Zambia 1983 5.7 19.2 Colel (1988), p.11 Zimbabwe 1987 11.2 47.6 -4.3 16.6 48.5 5.1 BenneU and Malaba (1991) T.3 42 Table A-2 The Coefficient on Years of Schooling: Mincerian Rate of Return, Latest Year Country Year M1ean Years of Coeflicient Source Schooling (percent) Argentina 1989 9.1 10.3 Psacharopoulos and Ng (1992) Australia 1987 9 7 5 4 Lorenz and Wagner (1990), pp.13-14 Austria 1981 11.6 See Psacharopoulos (1985) Bolivia 1989 10.1 7.1 Psacharopoulos and Ng (1992) Botswana 1979 3.3 19.1 Lucas and Stark (1985), p.917 Brazil 1989 5.3 14.7 Psacharopoulos and Ng (1992) Burkina Faso 1980 9.6 Ram and Singh (1988), p.421 Canada 1981 13 2 5 2 Lorenz and Wagner t1990), pp 13-14 Chile 1989 8.5 1' 0 Psacharopoulos and Ng (1992) China 1985 3 0 5 0 Jamison and van der Gaag (1987), p.163 Colombia 1989 8 2 14 0 Psacharopoulos and Ng (1992) Costa Rica 1989 6.9 10 9 Psacharopoulos and Ng (1992) Cote d'lvoire 1986 6.9 20.1 van der Gaag and Vijverberg (1989), p.374 Cyprus 1984 9.5 11.0 Demetriades and Psacharopoulos (1987), p.599 Dominican Rep. 1989 8 8 9 4 Psacharopoulos and Ng (1992) Ecuador 1987 9.6 11.8 Psacharopoulos and Ng (1992) El Salvador 1990 6.9 9 7 Psacharopoulos and Ng (1992) Ethiopia 1972 6.0 8 0 See Psacharopoulos (1985) France 1977 6.2 10.0 Jarousse and ,ignat (1986), p.11 Germany 1987 10 1 4 9 Lorenz and Wagner (1990), pp. 13-14 Ghana 1989 10.0 8 5 Glewwe (1991), p.13 Great Britain 1987 11.8 6 8 Lorenz and Wagner (1990), pp.13-14 Greece 1987 10.0 2.7 Lambropoulos and Psacharopoulos (1992), Table 7 Guatemala 1989 4.3 14 9 Psacharopoulos and Ng (1992) Honduras 1989 6.5 17.6 Psacharopoulos and Ng (1992) Hong Kong 1981 9.1 6.1 See Psacharopoulos (1985) Hungary 1987 11.3 4 3 Lorenz and Wagner (I990), pp.13-14 India 1980 16.8 4 9 Rao and Datta (1989), p.377 Indonesia (Java) 1981 5.0 17.0 Byron and Takahashi (1989), p.115 Iran 1975 11 6 See Psacharopoulos (1985) Israel 1979 11.2 64 Lorenzand Wagner (1990), pp.13-14 Italy 1987 10.7 2.3 Lorenz and Wagner (1990), pp.13-14 Jamaica 1989 7.2 28.8 Psacharopoulos and Ng (1992) Japan 1975 11.1 6 5 Hill (1983), p.467 Kenya 1970 3.5 16 4 See Psacharopoulos (1985) Korea, South 1986 8.0 10 6 Ryoo (1988), p.160 Kuwait 1983 8.9 4.5 Al-Qudsi (1989), p.270 Malaysia 1979 15.8 9.4 Chapman and Harding (1985), p.366 Mexico 1984 6.6 14.1 Psacharopoulos and Ng (1992) Morocco 1970 2 9 15 8 See Psacharcpoulos (1985) Netherlands 1983 9.5 7 4 Lorenz and Wagner (1990). pp.13-14 Continued -- 43 Table A-2 (conlinued) Country Year Nlean Years Cocfficient Source of Schooling (percent) Nicaragua 1978 6.5 9.7 Behrman, Wolfe and Blau (1985), p.1l Pakistan 1979 8.6 9.7 Shabbir (1991), p.12 Panama 1990 9.2 13 7 Psacharopoulos and Ng t1992) Paraguay 1990 9.1 1!.5 Psacharopoulds and Ng (1992) Peru 1990 10.1 8.1 Psacharopoulos and Ng (1992) Philippines 1988 9.0 8 0 Hossain and Psacharopoulos (1992) Poland 1986 11.1 2 9 Lorenz and Wagner (1990), pp.13-14 Portugal 1985 9.5 10 0 Kiker and Santos (1991), p.192 Singapore 1974 8.5 13.4 Liu and Wong (1981), p.280 South Vietnam 1964 16 8 See Psacharopoulos (1985) Sri Lanka 1981 4.5 7 0 See Psacharopoulos (1985) Sweden 1974 12.4 6.7 See Psacharopoulos (1985) Switzerland 1987 11.0 79 Lorenz and Wagner (1990), pp.13-14 Taiwan 1972 9.0 6 0 See Psacharopoulos (1985) Tanzania 1980 !I 9 See Psacharopoulos (1985) Thailand 1971 4.1 10 4 See Psacharopoulos (1985) Tunisia 1980 4.8 5 0 Bonattour (1986), p.15 United Kingdom 1975 13.0 8 0 See Psacharopoulos (1985) United States 1987 13.6 9 5 Lorenz and Wagner (1990), pp.13-14 Uruguay 1989 9.0 9 7 Psacharopoulos and Ng (1992) Venezuela 1989 9.1 8 4 Psacharopoulos and Ng (1992) 44 Table A-3 Returns to Education by Level of Education and Gender Country Year Educational NMen Women Source Level Argentina 1985 Overall 9 1 10.3 Kugler and Psacharopoulos (1989), p.356 .Argentina 1989 Overall 10.7 11.2 Psacharopoulos and Ng (1992) Austria 1981 Overall 10.3 13.5 See Psacharopoulos (1985) Bolivia 1989 Overall 7.3 7.7 Psacharopoulos and Ng (1992) Botswana 1975 Overall 16.4 18.2 Lucas (1975), p.159 Brazil 1980 Overall 14 7 15.6 Stcicner et al. (1992), Table 15 Brazil 1989 Overall 15.4 14 2 Psacharopoulos and Ng (1992) Chile 1987 Overall 13.7 12.6 Gill (1992a), Tables 6 and 7 Chile 1989 Overall 12.1 13.2 Psacharopoulos and Ng (1992) China 1985 Overall 4.5 5.6 Jamison and van der Gaag (1987), p.163 Colombia 1973 Overall 18.1 20.8 Schultz (1988), p.600 Colombia 1973 Overall 18.1 20.8 See Psacharopoulos (1985) Colombia 1973 Overall 10.3 20.1 See Psacharopoulos (1985) Colombia 1988 Overall 11.1 9.7 Psacharopoulos and Velez (1992a), Table 6 Colombia 1989 Overall 14.5 12.9 Psacharopoulos and Ng (1992) Costa Rica 1974 Overall 14.7 14.7 See Psacharopoulos (1985) Costa Rica 1989 Overall 10 1 13.1 Yang (1992), Table 5 Costa Rica 1989 Overall 10.5 13.5 Psacharopoulos and Ng (1992) Cyprus 1984 Overall 8.9 12.7 Demetriades and Psacharopoulos (1987), p.599 Dominican Rep. 1989 Overall 7.8 12.0 Psacharopoulos and Ng (1992) Ecuador 1987 Overall 11.4 10.7 Gomez and Psacharopoulos (1990), p.222 Ecuador 1987 Overall 9.8 11.5 Psacharopoulos and Ng (1992) El Salvador 1990 Overall 9.6 9.8 Psacharopoulos and Ng (1992) Germany 1974 Overall 13.1 11.2 See Psacharopoulos (1985) Germany 1977 Overall 13.6 11.7 See Psacharopoulos (1985) Greece 1977 Overall 4 7 4.5 See Psacharopoulos (1985) Guatema,a 1989 Overall 14.2 16.3 Psacharopoulos and Ng (1992) Honduras 1989 Overall 17.2 19.8 Psacharopoulos and Ng (1992) India 1978 Overall 5.3 3.6 Tilak (1990), pp.135-136 Ivory Coast 1984 Overall 11.1 22.6 Komenan ( (1987), p.39 Jamaica 1989 Overall 12 3 21.5 Scott (1991b), Table 5 Jamaica 1989 Overall 28.0 31.7 Psacharopoulos and Ng (1992) Malaysia 1979 Overall 5.3 8.2 Chapman and Harding (1988), p.366 Mexico 1984 Overall 13.2 14.7 Steele (1992), Table 4 Mexico 1984 Overall 14.1 15 0 Psacharopoulos and Ng (1992) Nicaragua 1978 Overall 8.5 11.5 Behrman, Wolfe and Blau (1985), p.13 Panama 1989 Overall 9.7 11.9 Arends (1992), Table 6 Panaina 1989 Overall 12.6 !7.1 Psacharopoulos and Ng (1992) Paraguay 1990 Overall 10.3 12.1 Psacharopoulos and Ng (1992) Peru 1985 Overall 11.5 12.4 Khandker (1992), Table 6 Peru 1990 Overall 8.5 6 5 Psacharopoulos and Ng (1992) Continued - 45 Table. 1 continued) Country Year Educational Men Women Source Level Philippines 1988 Overall 12.4 12.4 Hossain and Psacharopoulos (1992) Portugal 1977 ONerall 7.5 8 4 See Psacharopoulos (1985) Purtugal 1985 Ovcrall 9.4 10.4 Kiker and Santos (1991), p.192 South Korca 1976 Ocrill 10 3 1 7 See Psacharopoulos (1985) South Korea 1980 O%erall I' 2 5 0 See Psacharopoulos (1985) Sn Lanka 1981 O\.erill 6 9 7 9 See Psacharopoulos (1985) Thailand 1972 Overall 9 1 13.0 See Psacharopoulos (1985) Uruguay 1939 O.cr4Il 9 0 10 6 Psacharopoulos and Ng (1992) Venezuela 1976 Overal. 9 9 13 5 See Psacharopoulos (1985) Venezuela 1987 O\.erall 10 0 13 1 Psacharopoulos and Alam (1991), p.32 Venezuela 1989 ONcrali 9 1 11.1 Winter (1992), Table 4 Venezuela 1989 Overa;l S 4 8 0 Psacharopoulos and Ng (1992) Yugoslavia 1976 Overall i S 6.6 Bevc (1991), p.204 Yugoslavia 1986 O\erall 4 9 4 8 Bevc (1991), p.204 Mean : 12.4 Puerto Rico 1959 Primary - 5 18.4 See Psacharopoulos (1985) Taiwan 1982 Primary i 4 16.1 See Psacharopoulos (1985) Indonesia 1982 Primary. So; ) 3 17.0 USAID (1986), Table 2.122 Great Britain 1841 Literacy 4 5 3.5 Mitch (1988), p.563 Great Britain 1871 Literacy ;) 0 9.0 Mitch (1988), p.563 Mean I:u 12.8 France 1969 Secondary . 3 - 15.4 See Psacharopoulos (1985) France 1976 Secondary .4 3 16.2 See Psacharopoulos (1985) Great Britain 1971 Secondary . 0 8.0 See Psacharopoulos (1985) Indonesia 1982 Secondary 3' 0 11.0 USAID (1986), Table 2.122 Indonesia 1986 Secondary 1;0 16.0 McMahon, Jung and Boediono (1992), Table 1 Puerto Rico 1959 Secondary 2' 3 40.8 See Psacharopoulos (1985) South Korea 1971 Secondary I 3 7 16.9 See Psacharopoulos (1985) Sri Lanka 1981 Secondary 2 '6 35.5 Sahn and Aldeman (1988), p.166 Canada 1980 Secondary I J 6.0 Vaillancourt and Henriques (1986), p.49 Canada 1985 Secondary 10 6 18.6 Vaillancourt (1992), Table 7 Mean , 9 18.4 Australia 1976 University 1 I 21.2 See Psacharopoulos (1985) Canada 1980 University, Priv. 55 10.5 Vaillancourt and Henriques (1986), p.49 Canada 1985 University 8 3 18.8 Vaillancourt (1992), Table 7 France 1969 University -'5 13.8 See Psacharopoulos (1985) France 1976 University 20 0 12.7 See Psacharopoulos (1985) France 1976 University 20 0 12.7 Jarousse (1985/86), p.37 Great Britain 1971 University 8 0 12.0 See, Psacharopoulos (1985) Indonesia 1982 University 10 0 9.0 USAID (1986), Table 2.122 Indonesia 1986 Univ.,Soc. 9 0 10.0 World Bank (1991), p.179 Japan 1976 University 6 9 6.9 See Psacharopoulos (1985) Continued - 46 Table A-3 (continued) Country Year EJucational NMen Women Source Le%el: Japan 1980 Uni%rsity 5 7 5 8 See Psacharopoulos (1985) Puerto Rico 1959 Uni,crsay 21.9 9 0 See Psacharopoulos (1985) South Korea 971 Umscri,y 15 7 22 9 S;c P,acharopouios 1985) Ncan 13 4 12 7 47 Table A-4 The Effect of Selectivity Correction on the Returns to Education by Gender Country Year N1ale Female Source Uncorre..ted Uncorre.tcd Corrected Argentina 1985 9 1 10.7 10 9 Ng 1992), Table 5 Bolivia 1989 7.1 6.3 6 5 McKinnon Scott (1992a), Table 6 Chile 1987 12.6 11 9 Gill (1992a). Table 6 Colombia 1980 15 7 17 4 Nlagnac (1992), Tables 11 and 12 Colombia 1981 12.1 13 5 15 5 Magnac (1992), Tables 11 and 12 Colombia 1982 12 6 13.2 15.2 Ntagnac (1992), Tables 11 and 12 Colombia 1983 12.9 13 9 16.1 Nlagnac (1992). Tables 11 and 12 Colombia 1984 13.2 14 4 16.9 MIagnac (199_), Tables 11 and 12 Colombia 1985 13.3 13 6 15 1 Nlagnac (1992). Tables 11 and 12 Colombia 1988 12.0 11.2 9.9 Velez and Winter (1992), Table 5 Costa Rica 1989 10 1 13.1 12.9 Yang (1992), Table 5 Ecuador 1987 9.7 9.0 9.1 Jakubson and Psacharopoulos (1992). Table 4 Guatemala 1989 14 3 16 4 14 6 Arends (1992a). Table 6 Honduras 1989 14.1 13.2 11.5 Winter and GindLing (1992b), Table 7 Jamaica 1989 12.3 21 5 20.2 MNcKinnon Scott (1992b), Table 5 Mexico 1984 13.2 14.7 10.9 Steele (1992), Table 4 Panama 1989 9.7 11.9 9.8 Arends (1992b), Table 6 Peru 1985 11.5 12.4 13.1 Khandker (1992), Table 6 Peru 1990 9.2 8.2 7 7 Gill (1992b), Tables 6 and 7 Uruguay 1989 9.9 11.1 11.2 Arends (1992c), Table 5 Venezuela 1987 10.6 12 2 11.3 Cox and Psacharopoulos (1992), Table 4 Venezuela 1989 9.1 11.1 10.1 Winter (1992), Table 4 Mean 11.3 12.7 12.6 48 Table A-5 Returns to Secondary Education by Curriculum Type Academic/General Technical/Vocational Country Year Social Private Social Private Source Argentina 1989 12.3 11.0 Psacharopoulos and Ng (1992) Bolivia 1989 6.6 10.4 Psacharopoulos and Ng (1992) Botswana 1986 35.0 25 0 Hlnchliffe (1990), p.403, Brigades 3razil 1980 12.0 10 0 Dougherty and Jimenez (1991), p.95 Cameroon 1985 6 9 9 9 Paul d1990), ?-407 Canada 1980 9.5 2.0 Vaillancourt and Henriques (1986), p.491 Chile 1989 9.4 13.1 Psacharopoulos and Ng (1992) Colombia 1981 9.1 10 0 See Psacharopoulos (1985) Costa Rica 1989 11.8 12.3 Psacharopoulos and Ng (1992) Cote d'lvoire 1985 3.9 15.8 Grootaert (1990), p.319 Cyprus 1975 10.5 7 4 See Psacharopoulos (1985) Cyprus 1979 6.8 5.5 See Psacharopoulos (1985) Dominican Rep. 1989 10.8 10.3 Psacharopoulos and Ng (1992) France 1970 10.1 7 6 See Psacharopoulos (1985) France 1977 8.1 5 4 11.0 Jarousse and Mignat (1988), p.6 Honduras 1989 19.8 28.1 Psacharopoulos and Ng (1992) Indonesia 1978 32.0 1s 0 See Psacharopoulos (1985) Indonesia 1982 23.0 19 0 USAID (1986), Table 2-122 Indonesia 1986 19.0 6 0 World Bank (1991), p.179 Indonesia 1986 12.0 14.0 McMahon and Jung (1989), pp.21-22, Senior Indonesia 1986 11.0 9 0 McMahon and Jung (1989), .21-22. Junior Liberia 1983 20.0 14 0 See Psacharopoulos (1985) Mexico 1984 12,4 12.3 Psacharopoulos and Ng (1992) Panama 1989 15.0 9.9 Psacharopoulos and Ng (1992) Peru 1985 6.0 5.9 BeUew and Mook (1990), p.372, Private Peru 1990 4.0 6.4 Psacharopoulos and Ng (1992) Taiwan 1970 26.0 27.4 See Psacharopoulos (1985) Tanzania 1982 6.3 3.7 See Psacharopoulos (1985) Togo 1985 4.0 6.3 Paul (1990), p.407 Uruguay 1989 8.2 10.2 Psacharopoulos and Ng (1992) Venezuela 1975 14.3 17 6 Psacharopoulos and Steir (1988), p.330 Venezuela 1984 10.5 12.0 Psacharopoulos and Steir (1988), p.330 Venezuela 1989 8.9 13.1 Psacharopoulos and Ng (1992) Mean 15.5 10.6 11.7 10.5 49 Table A-6 Returns to Higher Education by Subject Country Year Subject Social Private Source Brazil 1962 Agriculture 5.2 See Psacharopoulos (1985) Brazil 1980 Manag./Agric. 16.0 Dougherty and limenez (1991), p.95 Colornbia 1976 Agronomy 16.4 22.3 See Psacharopoulos (1985) Greece 1977 Agronomy 2.7 3.1 See Psacharopoulos (1985) India 1971 Agriculture 16.2 Shortlidge (1974), p.21 Iran 1964 Agriculture 13.8 27.4 See Psacharopoulos (1985) Nlalaysia 1968 Agriculture 9 8 See Psacharopoulos (1985) Norway 1966 Agriculture 2.2 See Psacharopoulos (1985) Philippines 1969 Agriculture 5.0 5.0 See Psacharopoulos (1985) South Korea 1980? Agriculture 16.0 Ryoo (1988), p.184 Thailand 1987 Agriculture 8 2 19.0 Thailand (1987) Mean 7.6 15.0 Brazil 1980 Social Sciences 8.0 Dougherty and Jimenez (1991). p.95 Great Britain 1967 Social Sc ences 13.0 See Psacharopoulos (1985) Great Britain 1971 Social Sciences 11.0 48.0 See Psacharopoulos (1985) Canada 1985 Arts 3.8 4.0 Stager (1989), p.74 Canada 1985 Social Sciences 8.8 10.8 Vaillancourt (1992), Table 10 Canada 1985 Humanities -0.1 0.7 Vaillancourt (1992), Table 10 France 1976 Humanities 2.9 Jarousse (1985/86), p.38 Great Britain 1967 Arts 13.5 See Psacharopoulos (1985) Great Britain 1971 Arts 7.0 26.0 See Psacharopoulos (1985) India 1961 Humanities 12.7 14.3 See Psacharopoulos (1985) Iran 1964 Humanities 15.3 20.0 See Psacharopoulos (1985) Norway 1966 Arts 4 3 See Psacharopoulos (1985) South Korea 1980? Social Sciences 16.6 Ryoo (1988), p.184 Thailand 1987 Human.ities 11.2 15.9 Thailand (1987), pp.6-35 Venezuela 1984 Humanities 8.0 Psacharopoulos and Steier (1988), p.330 Mean 9.1 14.6 Belgium 1967 Economics 9.5 See Psacharopoulos (1985) Brazil 1962 Economics 16.1 See Psacharopoulos (1985) Canada 1967 Economics 9 0 16.3 See Psacharopoulos (1985) Canada 1985 Commerce 11.4 13.1 Stager (1989). p.74 Colombia 1976 Economics 26.2 32.7 See Psacharopoulos (1985) Denmark 1964 Economics 9.0 See Psacharopoulos (1985) Greece 1977 Economics and Pol. 4.4 5.4 See Psacharopoulos (1985) Iran 1964 Economics 18.5 23.9 See Psacharopoulos (1985) Norway 1966 Economics 8.9 See Psacharopoulos (1985) Philippines 1969 Economics 10.5 14.0 See Psacharopoulos (1985) South Korea 1980? Business 20.6 Ryoo (X988), p.184 Sweden 1967 Economics 9.0 See Psacharopoulos (1985) Venezuela 1984 Economics 15.7 Psacharopoulos and Steier (1988), p.330 Mean 12.C 17.7 Continued - 50 Table A-6 (continued) Country Year Subject Social Private Source Canada 1985 A.chitecture 4.5 6.0 Stager (1989), p.74 Canada 1985 Engineering 111.7 23.0 Vaillancourt (1992), Table 10 Brazil 1962 Engineering 17.3 See Psacharopoulos (1985) Canada 1967 Engineering 3 0 4.5 See Psacharopoulos (19&5) Canada 1983 Engineering I J 7 14.0 Stager (1989), p.74 Colombia 1976 Engineering 24.8 33 7 See Psacharopoulos (1985) Denmark 1964 Engineering 8.0 See Psacharopoulos (1985) France 1974 Engineering 17 5 Ntingat and Eicher (1983), p.214 Great Britain 1967 Engineering 11 4 See Psacharopoulos (198') Great Britair. 1971 Eng. and Technol 6 0 32 0 See Psacharopoulos (1985) Greece 1977 Engineering 8 2 12 2 See Psacharopoulos (1985) India 1961 Engineering 16 6 21 2 See Psacharopoulos (1985) Iran 1964 Engineering I 2 30.7 See Psacharopoulos (1985) Malaysia 1968 Engineering 13 4 See Psacharopoulos (1985) Norway 1966 Engineering S See Psacharopoulos (1985) Philippines 1969 Engineering r D 15 0 See Psacharopoulos (1985) South Korea 1980? Engineering 20.0 Ryoo (1988), p.184 Sweden 1967 Engineering See Psacharopoulos (1985) Thailand 1987 Engineering . 22.0 Thailand (1987), pp.6-35 Venezuela 1984 Engineering 20 3 Psacharopoulos and Steier (1988), p.330 Mean . 19.0 Belgium 1967 Law o See Psacharopoulos (1985) Brazil 1962 Law - 4 See Psacharopoulos (1985) Canada 1985 Law 1 6 13.6 Stager (1989), p.74 Colombia 1976 Law 2 - 28.3 See Psacharopoulos (1985) Denmark 1964 Law J 0 See Psacharopoulos (1985) France 1970 Law/Economics 16.7 See Psacharopoulos (1985) France 1976 Law/Economics 14.3 Jarousse (1985/86), p.38 France 1974 MA. Law/Econ. 16.7 Mingat and Eicher (1983), p.214 Greece 1977 Law 2 0 13.8 See Psacharopoulos (1985) Norway 1966 Law g0 o See Psacharopoulos (1985) Philippines 1969 Law !5 0 18.0 See Psacharopoulos (1985) Sweden 1967 Law 9 5 See Psacharopoulos (1985) Thailand 1987 Law i 15.4 Thailand (1987), p.6-35 Venezuela 1984 Law 14 1 Psacharopoulos and Steier (1988), p.330 Mean ,: 16 8 Australia 1973 Medicine 12.2 Davis (1977), p.310 Belgium 1967 Medicine 115 See Psacharopoulos (1985) Brazil 1962 NMedicine 1 9 See Psacharopoulos (1985) Canada 1985 Medicine 17 2 21.6 Stager (1989), p.74 Canada 1985 Health Sciences -0 7 9.2 Vaillancourt (1992), Table 10 Colombia 1976 Medicine 23 7 35 6 See Psacnaropoulos (1985) Denmark 1964 Medicine 5.0 Sec Psacharopoulos (1985) Continued - - 51 Table A-6 (continued) Country Year Subject Social Private Source France 1974 Doct. Nledicine 24.1 Nlingat and Eicher (1983), p.214 France 1976 Medicine 12 6 Jarousse (1985/86), p.38 Malaysia 1968 NMedicine 12.4 See Psacharopoulos (1985) Norway 1966 Medicine 3.1 See Psacharopoulos (1985) Sweden 1967 Medicine 13.0 See Psacharopoulos (1985) Thailand 1987 NMedicine 5.4 13.8 Thailand (1987), pp.6-35 Mean 10.0 17.7 Great Britain 1957 Physics 20.0 Wilson (1985). p.197 Great Britain 1961 Physics 19.5 Wilson (1985), p.197 Great Britain 1965 Physics 18.5 Wilson (1985), p.197 Great Britain 1968 Physics 15.5 Wilson (1985), p.197 Great Britain 1977 Physics 10.0 Wilson (1985), p.197 Great Britain 1980 Physics 10.0 Wilson (1985), p.197 Greece 1977 Physics and NIath. 1 8 2.1 See Psacharopoulos (1985) Mean 1 8 13.7 Belgium 1967 Sciences 8 0 See Psacharopoulos (1985) Brazil 1980 Sciences 20.0 Dougherty and Jimenez (1991), p.95 France 1974 Sciences (M.A.) 12.3 Mingat and Eicher (1983), p.214 France 1970 Sciences 12.3 See Psacharopoulos (1985) Great Britain 1967 Sciences 11 0 See Psacharopoulos (1985) Great Britain 1971 Sciences 7 0 38 0 See Psacharopoulos (1985) Norway 1966 Sciences 6 2 See Psacharopoulos (1985) Thailand 1987 Sciences 9 5 19.5 Thailand (1987), p.6-35 Venezuela 1984 Sciences 10.9 . Psacharopoulos and Steier (1988), p.330 Mean 8 9 17.0 52 Table A-7 Returns to Education by Economic Sector Country Year Private Public Source Argentina 1985 9.6 7.0 Kugler and Psacharopoulos (1989), p.356 Argentina 1989 11.1 8.9 Psacharopoulos and Ng (1992) Australia 1981 6.4 6.7 McNabb and Richardson (1986), Table 3 Australia 1982 6.4 6.7 McNabb and Richardson (1989), p.66 Bolivia 1989 8.7 6.7 Psacharopoulos and Ng (1992) Brazil 1970 19.3 14.9 See Psacharopoulos (1985) Brazil 1989 15.0 11.4 Psacharopoulos and Ng (1992) Chile 1989 11.4 11.2 Psacharopoulos and Ng (1992) Colombia 1984 10.6 9.5 Psacharopoulos, Arriagada and Velez (1991), Table 4 Colombia 1988 11.0 11.3 Psacharopoulos and Velez (1992), Table S Colombia 1975 14.6 13.4 See Psacharopoulos (1985) Colombia 1978 11.7 12.9 See Psacharopoulos (1985) Colombia 1989 13.7 11.9 Psacharopoulos and Ng (1992) Costa Rica 1982 9.2 8.1 Gindling (1991) p.597 Costa Rica 1989 9.3 8.5 Psacharopoulos and Ng (1992) Cote d'lvoire 1984 10.8 11.2 Komenan (1987), p.51 Ecuador 1987 11.5 7.4 Gomez and Psacharopoulos (1990), p.222 Ecuador 1987 11.3 7.1 Psacharopoulos and Ng (1992) El Salvador 1990 9.4 6.2 Psacharopoulos and Ng (1992) France 1977 11.5 7.9 Jarrousse and Mignat (1986), p.26 Ghana 1989 7.1 7.4 Glewwe (1981), p.13 Greece 1975 4.8 6.4 Lambropoulos and Psacharopoulos (1992), Table 7 Greece 1975 15.1 15.9 Lambropoulos and Psacharopoulos (1992), Table 5 Greece 1977 7.0 6.2 Psacharopoulos (1985) Greece 1977 6.8 7.3 Lambropoulos and Psacharopoulos (1992). Table 7 Greece 1981 13.7 10.7 Lambropoulos and Psacharopoulos (1992), Table 5 Greece 1981 4.3 4.0 Lambropoulos and Psacharopoulos (1992), Table 7 Greece 1985 10.2 7.4 Lambropoulos and Psacharopoulos (1992), Table S Greece 1985 3.9 3.3 Lambropoulos and Psacharopoulos (1992), Table 7 Guatemala 1977 12.7 10.6 See Psacharopoulos (1985) Guatemala 1989 14.1 8.7 Psacharopoulos and Ng (1992) Honduras 1989 17.4 12.3 Psacharopoulos and Ng (1992) Jamaica 1989 24.9 16.0 Psacharopoulos and Ng (1992) Japan 1970 19.3 6.5 See Psacharopoulos (1985) Malaysia 1978 22.5 17.7 Sce Psacharopoulos (1985) Mexico 1984 11.0 6.7 Psacharopoulos (1991), Table 5 Mexico 1984 15.4 8.0 Psacharopoulos and Ng (1992) Pakistan 1975 7.6 7.4 See Psacharopoulos (1985) Panama 1989 12.2 11.0 Psacharopoulos and Ng (1992) Paraguay 1990 11.9 8.3 Psacharopoulos and Ng (1992) Peru 1990 9.0 9.0 Psacharopoulos and Ng (1992) Philippines 1988 8.6 6.4 Hossain and Psacharopoulos (1992) Continued - 53 Table A-7 (Continued) Country Year Private Public Source Portugal 1977 8.0 4.9 See Psacharopoulos (1985) Pornugal 1985 8.1 7.2 Kiker and Santos (1991), p.192 Tanzania 1980 14.2 10.7 Sce Psacharopoulos (1985) United Kingdom 1975 8.7 6.3 See Psacharopoulos (1985) United States 1978 9.4 9.2 Cohn, Kiker and Olivcira (1987), p.292 Uruguay 1989 10.5 5.7 Psacharopoulos and Ng (1992) Venezuela 1984 11.1 10.6 See Psacharopoulos (1985) Venezuela 1975 10.4 8.5 Psacharopoulos and Steir (1988), p.327 Venezuela 1984 9.8 9.7 Psacharopoulos and Steir (1988), p.327 Venezuela 1987 10.3 10.1 Psacharopoulos and Alam (1991), p.31 Venezuela 1989 9.7 6.6 Psacharopoulos and Ng (1992) Mean 11.2 9.0 54 Table A-8 Returns to Education in Self vs. Dependent Employment Country Year Self D.pcnlJent Source Australia 1981 4.6 6 4 McNabb and Richardson (1986). p. 17 Australia 1982 5.9 7.0 NlcN3bb anJ Richardson (1989), p.70 Brazil 1980 13.8 14.7 Stelchneretal. (1991), Table 15 Brazil 1980 18.3 15 7 DLbos and Psacharopoulos (1991), Tabic 12 Colombia 1981 12 0 15 1 Nlagnac (1991), Table 13 Colombia 1982 12.9 15 1 Magnac (1991), Table 13 Colombia 1983 13.1 15 8 Ntagnac (1991), Table 13 Colombia 1984 12.9 14 7 MNagnac (1991), Table 13 Colombia 1984 12.9 10 6 Psacharopoulos, Arriagada and Velez (1991), Table 4 Colombia 1985 11.0 15 6 Magnac (1991), Table 13 Ecuador 1987 7.4 Gomez and Psacharopoulos (1990), p.222 Peru 1990 9.5 9 1 Gill (1991b), Table 9 United States 1978 9.0 8 6 Cohn, Kiker and Oliveira (1987), p.292 Venezuela 1987 7.7 10 0 Psacharopoulos and Alam (1991), p.31, 36 Mean 10.8 12.2 55 Table A-9 Returns to Investment in Education by Level Over-Time: Full Method Social Private Country Year Pnm. Sc:. Higher Prim. Sec. Higher Source Australia 1969 14.0 13.9 See Psacharopoulos (1985) Australia 1976 8.1 21.1 See Psacharopoulos (1985) Brazil 1970 24 7 13.9 See Psacharopoulos (1985) Brazil 1980 11.0 16.0 Dougherty and Jinenez (1991), p.95 Brazil 1989 356 5.1 21.4 36.6 5.1 28.2 Psacharopoulosand Ng (1992) Canada 1960 14 9 17.4 Stager (1989), p.74 Canada 1985 12.1 i4.0 Stager (1989); p.74 Chile 1960 17.2 10.6 11.6 33.1 12.5 6.8 Riveros (1990), p. 1 17 Chile 1985 12.4 9.2 10.3 27 6 11.0 6.9 Riveros (1990), p.117 Chile 1989 8.1 11.1 14.0 9 7 12.9 20.7 Psacharopoulos and Ng (1992) Cyprus 1975 10.5 9.7 11.6 8.6 See Psacharopoulos (1985) Cyprus 1979 6.8 7.6 7 0 5.6 See Psacharopoulos (1985) France 1962 11.5 9.3 See Psacharopoulos (1985) France 1976 14.8 20.0 Jarousse (1985/86), p.37 Germany . 1964 4.6 See Psacharopoulos (1985) Cermany 1978 10.5 See Psacharopoulos (1985) Great Britain 1841 24.5 Mitch (1988), p.560, 563 Great Britain 1871 19.0 Mitch (1988), p.560, 563 Great Britain 1971 10.0 Glennester and Low (1990). p.67 Great Britain 1971 7.0 See Psacharopoulos (1985) Greece 1962 6.3 13.7 7.2 14.0 See Psacharopoulos (1985) Greece 1977 5.5 4.5 6.0 5.5 See Psacharopoulos (1985) India 1965 13.4 15.5 10.3 17 3 18.8 16.2 See Psacharopoulos (1985) India 1978 29.3 13.7 10.8 33 4 19.8 13.2 See Psacharopoulos (1985) Indonesia 1978 16.2 14.8 See Psacharopoulos (1985) Indonesia 1989 11.0 5.0 McMahon and Boediono (1992), Table 7 Iran 1972 34.0 11.5 15.0 See Psacharopoulos (1985) Iran 1976 15.2 17.6 13.6 See Psacharopoulos (1985) Japan 1967 10.5 See Psacharopoulos (1985) Japan 1980 8.3 See Psacharopoulos (1985) Malawi 1978 15.1 See Psacharopoulos (1985) Malawi 1982 15.2 See Psacharopoulos (1985) Mexico 1963 25.0 17.0 23.0 32 0 23.0 29.0 See Psacharopoulos (1985) Mexico 1984 19.0 9.6 12.9 21 6 15.1 21.7 Psacharopoulos and Ng (1992) Pakistan .1975 20.0 11.0 27.0 Sce Psacharopoulos (1985) Paldstan 1979 4.0 5.6 6.3 Khan and Irfan (1985), p.675 Papua N.G. 1979 19.9 13.9 1.0 29.4 17.6 11.4 McGavin (1991), p.215 Papua N.G. 1986 12.8 19.4 8.4 37.2 41.6 23.0 McGavin (1991), p.215 Continued - 56 Table A-9 (continued) Social Private Country Year Prim. Sec. Higher Prim. Sec. Higher Source Peru 1972 19.8 16.3 See Psacharopoulos (1985) Peru 1985 5.9 9.3 Moock and Bellew (1988), p,29 Peru 1990 13.2 6.3 39.7 Psacharopoulos and Ng (1992) Philippines 1971 7.0 6.5 8.5 9.0 6.5 9.5 See Psacharopoulos (1985) Philippines 1985 11.9 12.9 13.3 18.2 13.8 14.0 Tan and Paqueo (1989), p.248 Philippines 1988 13.3 8.9 10.5 18.3 10.5 11.6 Hossain and Psacharopoulos South Korea 1967 9.0 5.0 See Psacharopoulos (1985) South Korea 1986 8.8 15.5 Ryoo (1988), p.158 Taiwan 1970 26.5 15.0 17.6 18.4 See Psacharopoulos (1985) Taiwan 1972 12.3 17.7 12.7 15.8 Sce Psacharopoulos (1985) Tanzania 1980 11.0 Knight and Sabot (1987), p.260 Tanzania 1982 5.0 See Psacharopoulos (1985) Thailand 1970 11.0 14.0 See Psacharopoulos (1985) Thailand 1985 13.5 21.9 Thailand (1987), p.6-33 Tunisia 1977 17.0 24.1 Bonattour (1986), p.15 Tunisia 1980 13.0 27.0 Bonattour (1986), p.15 Upper Volta 1970 25.9 60.6 See Psacharopoulos (1985) Upper Volta 1982 20.1 14.9 See Psacharopoulos (1985) United States 1939 18.2 10.7 See Psacharopoulos (1985) United States 1987 10.0 12.0 McMahon (1991), Tablel Uruguay 1972 3.6 4.8 5.4 Indart (1981). p.23 Uruguay 1979 9.9 11.6 20.0 Indart (1981). p.23 Uruguay 1989 21.6 8.1 10.3 27 8 10.3 12.8 Psacharopoulos and Ng (1992) Venezuela 1957 82.0 17.0 23.0 18.0 27.0 See Psacharopoulos (1985) Venezuela 1989 23.4 10.2 6.2 36 3 14.6 11.0 Psacharopoulos and Ng (1992) Yugoslavia 1969 9.3 15.4 2.8 7 6 15.3 2.6 See Psacharopoulos (1985) Yugoslavia 1986 3.3 2.3 3.1 14 6 3.1 5.3 Bevc (1989), p.6 57 Table A-9.1 Absolute Change in the Returns to Investment in Education by Level Over-Time: Full Method (Percentage Points) Period Social Private Country (Years) Prim. Sec. Higher Prim. Sec. Higher Australia 7 -5.9 7.2 Brazil 19 -19.6 14.3 Canada 25 -2.3 -3.4 Chile 29 -9.1 0.5 2.4 -23.4 0.4 13.9 Cyprus 4 -3.7 -2.1 -4.6 -3.0 France 14 3.3 10.7 Germany 14 5.9 Britain 30 -5.5 Greece 15 -0.8 -9.2 -1.2 -8.5 India 13 15.9 -1.8 0.5 16.1 1.0 -3.0 Indonesia 11 -5.2 -9.8 Iran 4 -18.8 6.1 -1.4 Japan 9 -5.5 Malawi 4 0.4 -18.5 Mexico 21 6.0 -7.4 -10.1 -10.4 -7.9 -2.0 Pakistan 4 -16.0 -5.4 -9.3 Papua N.G. 7 -7.1 5.5 7.4 7.8 24.0 11.6 Peru 13 -13.9 -7.0 Philippines 17 6.3 2.4 2.0 5.1 4.0 2.1 South Korea 19 -0.2 10.5 Taiwan 2 -14.2 2.7 -4.9 -2.6 Tanzania 2 -6.0 Thailand 15 2.5 7.9 Tunisia 3 -4.0 2.9 Upper Volta 12 -5.8 -45.7 United States 48 -8.2 1.3 Uruguay 17 4.5 5.5 7.4 Venezuela 32 -58.6 -6.8 -16.8 -3.4 -16.0 Yugoslavia 17 -6.0 -13.1 0.3 7.0 -12.2 2.7 Mean 15.0 -8.3 -5.7 -1.7 -2.0 -1.9 1.7 Source: Table A-9. 58 Table A-10 The Coefficient on Years of Schooling: Mincerian Rates of Return (over time) Country Year Mean Years Coefficient Source of Schooling (percent) Australia 1981 8 4 See Psacharopoulos (1985) Australia 1987 5 4 Lorenz and Wagner (1990), pp.l3-14 Botswana 1975 16.5 Lucas (1985), p.'59 Botswana 1979 19.1 Lucas and Stark (1985), p.917 Brazil 1970 19.2 See Psacharopoulos (1985) Brazil 1980 14.1 Tannen kt991), p.572 Brazil 1989 5.3 14.7 Psacharopoulos and Ng (1992) Canada 1971 5 2 See Psacharopoulos (1985) Canada 1981 5 2 Lorenz and Wagner (1990), pp.13-14 Chile 1960 7.6 11 2 Riveros (1990), p. 115 Chile 1987 9 8 13 7 Gill (1991a), Table 7 Chile 1989 8.5 i '0 Psacharopoulos and Ng (1992) China 1985 5 0 Jamison and van der Gaag (1987), p.163 China 1986 3 7 Byron and Manalota (1990), p.790 Colombia 1965 173 Sec Psacharopoulos (1985) Colombia 1988 10 5 Psacharopoulos and Velez (1992), Table 4 Colombia 1989 8.2 14 0 Psacharopoulos and Ng (1992) Costa Rica 1974 i 50 See Psacharopoulos (1985) Costa Rica 1989 6.9 :0 9 Psacharopoulos and Ng (1992) Cote d'lvoire 1984 4.5 11 3 Komenan (1987), p.22 Cote d'lvoire 1986 6.9 '0 1 .an der Gaag and Vijverberg (1989), p.374 Cyprus 1975 i2 5 See Psacharopoulos (1985) Cyprus 1984 11 0 Demetriades and Psacharopoulos (1987), p.599 El Salvador 1975 1 0 See Psacharopoulos (1985) El Salvador 1977 7 7 Anderson (1988), p.282 El Salvador 1990 6.9 9 7 Psacharopoulos and Ng (1992) France 1962 10 8 See Psacharopoulos (1985) France 1977 100 Jarousse and Mignat (1986), p.11 Germany 1974 121 See Psacharopoulos (1985) Germany 1987 4 9 Lorenz and Wagner (1990), pp.13-14 Greece 1960 3.1 9 2 Lambropoulos and Psacharopoulos (1992), Table 7 Greece 1987 10.0 2 7 Lambropoulos and Psacharopoulos (1992), Table 7 Guatemala 1975 10 8 See Psacharopoulos (1985) Guatemala 1989 4.3 14 9 Psacharopoulos and Ng (1992) Hong Kong 1976 6 3 See Psacharopoulos (1985) Hong Kong 1981 6 1 See Psacharopoulos (1985) Italy 1977 15.2 4 5 Antonelli (1980), p.170 Italy 1987 10.7 2.3 Lorenz and Wagner (1990), pp.13-14 Japan 1970 7.3 See Psacharopoulos (:985) Japan 1975 6 5 Hill (1983), p.467 Continued - 59 Table A-10 (continued) Country Year Mean Years Coefficient Source of Schooling (percent) Korea, South 1974 13.0 Ryoo (1988), p.160 Korea, South 1986 10.6 Ryoo (1988), p.160 Kuwait 1972 3.0 8.4 Al-Qudsi (1985), p.126 Kuwait 1983 8.9 4.5 AI-Qudsi (1989). p.270 Malaysia 1970 14.0 See Psac.haropoulos (1985) Malaysia 1979 9.4 Chapman and Harding (1985), p.366 Mexico 1963 15.0 See Psacharopoulos (1985) Mexico 1984 6.6 14.1 Psacharopoulos and Ng (1992) Pakistan 1975 7.4 See Psacharopoulos (1985) Pakistan 1979 9.7 Shabbir (1991), p.12 Panama 1983 7.7 12.1 Heckman and Hotz (1986), p.512 Panama 1989 9.2 13.7 Psacharopoulos and Ng (1992) Peru 1985 8.2 11.5 Khandker (1991), Table 6 Peru 1990 10.1 8.1 Psacharopoulos and Ng (1992) Philippines 1982 8.0 Tan and Paqueo (1989), pp.246-7 Philippines 1985 8.1 Tan and Paqueo (1989), pp.246-7 Philippines 1988 9.0 8.0 Hossain and Psacharopoulos (1992) Portugal 1977 9.1 See Psacharopoulos (1985) Portugal 1985 10.0 Kiker and Santos (1991), p.192 Tunisia 1977 12.3 Bonattour (1986), p.15 Tunisia 1980 8.0 Bonattour (1986), p.15 United 1972 9.7 See Psacharopoulos (1985) Kingdom United 1987 6.8 Lorent and Wagner (1990), pp.13-14 Kingdom United States 1959 10.7 See Psacharopoulos (1985) United States 1987 9.8 Lorenz and Wagner (1990), pp.13-14 Venezuela 1975 4.6 13.7 Psacharopoulos and Steir (1988), p.325 Venezuela 1989 9.1 8-4 Psacharopoulos and Ng (1992) 60 Table A-10.1 Absolute Change in the Coefficient on Years of Schooling: Mincerian Rates of Return (Over Time) Country Period Mean Years Coefficient (Years) of Schooling (percentage points) Australia 6 -3.0 Botswana 4 2.6 Brazil 19 -4.5 Canada 10 Chile 29 0.9 0.8 China 1 -1.3 Colombia 24 -3.3 Costa Rica 15 -4.1 Cote d'lvoire 2 2.4 8.8 Cyprus 9 *1.5 El Salvador 15 -7.3 France 15 -0.8 Germany 13 -7.2 Greece 27 6.9 -6.5 Guatemala 14 4.1 long Kong 5 -0.2 Italy 10 -4.5 -2.2 Japan 5 -0.8 Korea, South 12 -2.4 Kuwait 11 5.9 -3.9 Malaysia 9 -4.6 Mexico 21 -0.9 Pakistan 4 2.3 Panama 6 1.5 1.6 Peru 5 1.9 -3.4 Philippines 6 0.0 Portugal 8 0.9 Tunisia 3 -4.3 United Kingdom 15 -2.9 United States 28 -0.9 Venezuela 14 4.5 -5.3 Mean 118 2.4 -1.7 Source: Table A-10. Policy Research Working Paper Series Contact Title Author Date for paper WPS1047 Cote d'lvoire: Private Sector Enrique Rueda-Sabater November 1992 P. Infante Dynamics and Constraints Andrew Stone 37642 WPS1048 Targets and Indicators in World George Baldwin November 1992 0. Nadora Bank Population Projects 31091 WPS1049 Money Demand and Seignorage- William Easterly November 1992 R. Martin Maximizing Inflation Paolo Mauro 31448 Klaus Schmidt-Hebbel WPS1050 Marginal Income Tax Rates and William Easterly November 1992 R. Martin Economic Growth in Developing Sergio Rebelo 31448 Countries WPS1 051 The Legal Framework for Private Cheryl W. Gray November 1992 M. Berg Sector Activity in the Czech and 36969 Slovak Federal Republic WPS1 052 A Reappraisal of How Oral Hoda Rashad November 1992 0. Nadora Rehydration Therapy Affected Mortality 31091 in Egypt WPS1 053 Development of the Zimbabwe Alex F. Zinanga December 1992 0. Nadora Family Planning Program 31091 WPS1 054 Distributional Impact of Cash and Branko Milanovic December 1992 S. Moussa In-Kind Social Transfers in Eastern 39019 Europe and Russia WPS1055 Wealth, Weather Risk, and the Mark R. Rosenzweig December 1992 C. Banton Composition and Profitability of Hans P. Binswanger 34783 Agricultural Investments WPS1056 Earnings and Education in Latin George Psacharopoulos December 1992 L. Longo America: Assessing Priorities for Ying Chu Ng 39244 Schooling Investments WPS1 057 Measuring the Incomes of Economies Socio-Economic Data December 1992 E. Zamora of the Former Soviet Union Division 33706 International Economics Department WPS1058 The Pricing of Country Funds and Ishac Diwan December 1992 R. Vo Their Role in Capital Mobilization for Vihang Errunza 31047 Emerging Economies Lemma W. Senbet WPS1059 Political Economy of Policy Reform Ziya Onis December 1992 S. Gustafson in Turkey in the 1980s Steven B. Webb 37856 Policy Research Working Paper Series Contact Tltle Author Date for paper WPS1060 Economies of the Former Soviet Dmitri Steinberg December 1992 E. Zamora Union: An Input-Output Approach 33706 to the 1987 National Accounts WPS1061 Dynamic Response to Foreign Klaus Schmidt-Hebbel December 1992 A. Maranon Transfers and Terms-of-Trade Luis Serven 31450 Shocks in Open Economies WPS1062 Economic Development, Robert E. B. Lucas December 1992 WDR Environmental Regulation, and the David Wheeler 31393 International Migration of Toxic Hemamala Hettige Industrial Pollution, 1960-88 WPS1063 Mongolia: Privatization and System Cevdet Denizer December 1992 A. Oropesa Transformation in An Isolated Alan Gelb 39075 Economy WPS1064 More Evidence on Income George R. G. Clarke December 1992 R. Martin Distribution and Growth 39065 WPS1 065 Strengthening Uganda's Policy Thomas Owen Eisemon January 1992 C. Cristobal Environment for Investing in John Sheehan 33640 University Development George Eyoku Franklin Van Buer Delane Welsch Louisa Masutti Nat Colletta Lee Roberts WPS1 066 Pollution Control in a Decentralized Antonio Estache January 1992 A. Estache Economy: Which Level of Kangbin Zheng 81442 Government Should Subsidize What in Brazil WPS1067 Returns to Investment in Education: George Psacharopoulos January 1992 G. Psacharopoulos A Global Update 39243