Regional Rates of Return to Education and Training in Britain

Abstract

1995) Regional rates of return to education and training in Britain, Reg. Studies 29, 279-295. Using a structural utility-maximizing human capital model of the post-16 education and training decision, the paper explores rates ofreturn and lifetime earnings that might influence an individual's decision to participate in post-compulsory education and training. The paper presents ex ante regional rates ofreturn to post-16 further and higher education using information from the General Household Survey in Britain. Based on the empirical results, implications for education and training policy are drawn. The model demonstrates that there are important differences between expected rates of return to the same qualification in different regions. These returns are influenced by the regional labour market and are likely to have important influences on the incentives of individuals to pursue education or to train. The paper also demonstrates the generally low level of differentials in earnings profiles and rates of return in Britain to some qualifications, which further undermine incentives to train. Education Training Rates of return Regonal labour markets Skills Lifetime earnings BENNETT R., GLENNEKSTER H. et N E V I S O N D. (1995) Les taux de rendement rtgionaux de l'tducation et de la formation en Grande-Bretagne, Reg. Studies 29, 279-295. A partir d'un modtle structure1 du capital humain qui maximise l'utilitt et qui porte sur la dtcision de poursuivre, oui ou non, l'tducation et la formation aprts l'%ge de 16 ans, cet article cherche i examiner les taux de rendement et les gains touchessur toute la vie active qui pourraient influer sur la dtcision du particulier de participer, oui ou non, i l'education et i la formation postscolaire. En se servant des donntes provenant de la 'General Household Survey in Great Britain', (une enquete sur le comportement des mtnages en Grande-Bretagne), cet article prtsente les taux de rendement rkgionaux ex ante de l'tducation postscolaire. Les retombtes pour la politique dans les domaines de 1'Cducation et de la formation sont ttablies. Le modtle demontre qu'il existe d'importants kcarts dans les taux de rendement prtvus pour la mCme qualification obtenue dans des regions &fftrentes. Ces taux sont influences par le marcht du travail rtgional et risquent d'influer sensiblement sur la motivation des particuliers quant Q la dtcision de poursuivre, oui ou non, l'tducation ou la formation. L'article laissent voir aussi les tcarts de revenus et les taux de rendement relativement bas en Grande-Bretagne pour certaines qualifications, ce qui tbranle davantage la motivation pour la formation. Education Formation Taux de rendement Marches du travail rtgionaux Habiletts Gains sur toute la vie BENNETT R., GLENNERSTER H. und N E V I S O N D. (1995) Regionale Raten des Wiedereintritts ins Bildungs-und Ausbildungwesen in GroBbritannien, Reg. Studies 29,279-295. Mit Hilfe eines strukturelle Nutzlichkeit maximierenden Menschenkapitalmodells des Beschlusses betreff Bildung und Ausbildung iiber-16-jZhrige...

The Effect of School Size on Exam Performance in Secondary Schools

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A Waste of Time? (Private Rates of Return to Higher Education in the 1990s)

“…Further, it must be remembered that consumers who are graduates cannot be consuming other goods if they are repaying loans and so the whole expansion does really require associated growth, of which there is no guarantee (see Duncan and Hoffman 1981;Lynch 1993;Levin and King 1994). In addition, other than the identification of two broad groups of graduates, no consideration has been given to the mix of graduates and the type of training involved or their geographical location (see Groot 1994and Bennett et al 1995a, 1995b.…”

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“…The purpose of this paper is to demonstrate the role of various factors and this, for simplicity, is taken to be outside the scope of reference. The general implications from, for example, Bennett et al (1992Bennett et al ( , 1995a are that the returns to women from higher education tend to be comparable so, unless increased participation has changed this, there may be less of a problem for rates of return analysis than may initially be envisaged. 31.…”

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