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Measuring the returns to education

Authors: Richard Blundell , Lorraine Dearden and Barbara Sianesi
Date: 01 June 2005
Type: Book chapter,


The chapter on Measuring the Returns to Education explores the question of how the quantification of the individual wage gain from education does or could feed into policy, and in particular the contribution it can give to the issue of underinvestment in education. Issues which are more methodological in nature are then highlighted to give the non-technical reader an intuition and flavour of the various methods used in recent specialist research. The various methods are in turn applied to a common and very rich dataset (the NCDS cohort) to obtain the latest estimates of the returns to different educational qualifications in the UK. After interpreting and discussing the results, the chapter concludes by pointing out the limitations the policy-maker should be aware of when trying to use the estimates for policy purposes. Download full version

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