Abstract
Attachment B for EDSQ15-000059, Senate Estimates, Education and Training Portfolio
This study provides new estimates of the private returns to higher education in Australia. We undertake the analysis using a longitudinal model, which allows us to consider important aspects of earnings dynamics that are typically ignored by conventional modelling techniques. Our findings indicate that lifetime earnings of men with a postgraduate degree are about 75 per cent higher than those of men with Year 12 and below. Women with a postgraduate degree earn about 45 per cent more over their lifetime than women with Year 12 and below. We also find that lifetime earnings of women with a Bachelor or Honours degree are almost as high as those of women with a postgraduate degree. We further observe that women with Year 12 and below have no financial benefits from investing in vocational training.
This study provides new estimates of the private returns to higher education in Australia. We undertake the analysis using a longitudinal model, which allows us to consider important aspects of earnings dynamics that are typically ignored by conventional modelling techniques. Our findings indicate that lifetime earnings of men with a postgraduate degree are about 75 per cent higher than those of men with Year 12 and below. Women with a postgraduate degree earn about 45 per cent more over their lifetime than women with Year 12 and below. We also find that lifetime earnings of women with a Bachelor or Honours degree are almost as high as those of women with a postgraduate degree. We further observe that women with Year 12 and below have no financial benefits from investing in vocational training.
| Original language | English |
|---|---|
| Place of Publication | Canberra |
| Publisher | Parliament of Australia |
| Commissioning body | Department of Education, Skills and Employment |
| Number of pages | 38 |
| Publication status | Published - Dec 2014 |
| Externally published | Yes |