The Returns to Education

As we celebrate anniversaries of seminal works by Psacharopoulos, Mincer, and Becker, it is important to trace the evolution of the returns to education. The 20th century witnessed an educational revolution, with global average years of schooling rising from less than 2 in 1900 to over 7 in 2000. Cost-benefit analyses estimate returns to education, showing an average of 10 percent, higher for women and in lower-income areas. The canonical model suggests individuals respond to returns, influencing educational choices. Social returns to education extend beyond private gains, impacting crime rates, economic growth, and environmental health. The intricate interplay between private and social returns underscores the multifaceted nature of education's impact on individuals and societies. Keywords: Return to schooling; wages; social returns