Otwarty dostęp

Internal Rate of Return on Investment in Higher Education in Europe

Janusz Jablonowski
Janusz Jablonowski
   | 09 wrz 2021
Wroclaw Review of Law, Administration & Economics's Cover Image
O artykule
Poprzedni artykuł
Następny artykuł
Zacytuj
Data publikacji: 09 wrz 2021
Zakres stron: 1 - 19
DOI: https://doi.org/10.2478/wrlae-2021-0010
Słowa kluczowe
© 2021 Janusz Jablonowski, published by Sciendo
This work is licensed under the Creative Commons Attribution 4.0 International License.

Factor productivity, part I

Variable PL SK EE HU LV SI MT CY
Labour productivity, average: 2002–14 0.027 0.032 0.030 0.026 0.040 0.018 0.01 0.01*

Probability to achieve the degree, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
award prob. 0.81 0.96 0.91 0.81 0.81 0.78 0.86 0.88 0.91 0.97 0.81 0.72

Employment and unemployment data, part I

Data PL

PL = Poland, SK – Slovakia, EE – Estonia, HU – Hungary, LV – Latvia, SI – Slovenia, MT – Malta, CY – Cyprus.

 SK EE HU LV SI MT CY
gross unempl. benefit (% gross salary) 0.10 0.09 - 0.11 - - - -
net unempl. benefit (% net salary) 0.21 0.22 0.23 0.17 0.24 0.25 - -
gross unempl. benefit (EUR) 96 85 - 86 - - - -
net unempl. benefit (EUR) 106 107 173 62 120 161 - -
unempl. rate (tot, av. 2002–2014) 0.12 0.14 0.10 0.08 0.12 0.07 0.16 0.12*
empl. rate (tot, av. 2002–2014, % work. pop.) 0.57 0.59 0.66 0.57 0.63 0.65 0.58 0.60*
empl. rate (lower sec., 2014) 0.46 0.36 0.61 0.50 0.55 0.50 0.55 0.5*
empl. rate (upper sec., 2014) 0.67 0.73 0.77 0.73 0.72 0.70 0.67 0.6*
empl. rate (Post-sec., non-tert., 2014) 0.70 0.74 0.78 0.81 0.72 - - 0.7*
empl. rate (Short-cycle tert., 2014) 0.61 0.79 0.82 0.82 0.86 0.77 - 0.7*
empl. rate (Bachelors or equiv., 2014) 0.83 0.73 0.87 0.80 0.84 0.86 - 0.75*
empl. rate (Masters or equiv., 2014) 0.88 0.81 0.86 0.87 0.88 0.87 0.85 0.8*
empl. rate (upper sec., 2014) 0.95 0.85 0.89 0.89 0.93 0.92 0.85 0.8*
empl. rate (av. w. tert., 2014) 0.80 0.78 0.84 0.84 0.85 0.85 0.81 0.8*

Schooling and studying data, part I

Variable PL SK EE HU LV SI MT CY
Age at start of schooling, 2014 7 6 7 7 7 6 5 6*
Schooling years, 2014 11.8 12.4 12.0 11.3 11.5 11.9 9.9
World Bank estimated years in school 12.2 12.4 12.9 11.5 12.6 12.1 10.0 11*
Costs per student (thousand EUR./y, average) 6.7 7.8 8.7 7.5 6.2 9.1 8.4 8*
Number of students (total, average, thousands) 1 777.1 197.2 60.0 332.1 90.0 91.3 12.8 11*

Employment and unemployment data, part II

Data BE

BE – Belgium, FI – Finland, DE – Germany, FR – France, NL – Netherlands, ES – Spain, IT – Italy, AT – Austria, PT – Portugal, IE – Ireland, GR – Greece, LU – Luxembourg.

 FI DE FR NL ES IT AT PT IE GR LU
gross unempl. benefit (% gross salary) 0.37 0.35 0.21 0.36 0.33 0.33 0.10 0.27 0.39 0.42 0.10 0.26
net unempl. benefit (% net salary) 0.62 0.49 0.41 0.49 0.38 0.39 0.23 0.52 0.43 0.58 0.21 0.30
gross unempl. benefit (EUR) 1472 1284 787 1105 1382 756 331 1019 570 1056 160 1082
net unempl. benefit (EUR) 978 989 693 669 637 415 230 700 290 820 95 919
unemployment rate (tot, av. 2002–2014) 0.08 0.08 0.08 0.09 0.05 0.16 0.09 0.04 0.10 0.09 0.16 0.04
(tot, av. 2002–2014, % work. pop.) 0.61 0.69 0.76 0.64 0.74 0.60 0.57 0.70 0.66 0.64 0.58 0.64
(lower secondary, 2014) 0.53 0.58 0.62 0.61 0.64 0.57 0.54 0.54 0.74 0.65 0.61 0.79
(upper secondary, 2014) 0.71 0.72 0.78 0.73 0.78 0.68 0.70 0.76 0.79 0.73 0.66 0.81
(Post-secondary, non-tertiary, 2014) 0.83 0.94 0.85 0.59 0.88 0.62 0.74 0.80 0.83 0.86 0.67 0.83
(Short-cycle tertiary, 2014) 0.78 0.80 0.89 0.83 0.86 0.75 - 0.84 - 0.76 0.79 -
(Bachelors or equivalent, 2014) 0.84 0.82 0.88 0.82 0.87 0.78 0.69 0.77 0.74 0.76 0.67 0.87
(Masters or equivalent, 2014) 0.86 0.85 0.88 0.86 0.90 0.81 0.81 0.89 0.86 0.87 0.76 0.86
empl. rate (Doctoral or equiv., 2014) 0.91 0.88 0.93 0.87 0.96 0.90 0.89 0.90 0.92 0.95 0.91 0.90
empl. rate (av. w. tert.), 2014) 0.84 0.86 0.89 0.79 0.89 0.77 0.78 0.84 0.84 0.81 0.73 0.83

Pension system data, part I

Variable PL SK EE HU LV SI MT CY
Real pension index., average 2002–14 0.05 0.06 0.08 0.08 0.06 0.08 0.03 0.03
Retirement age 62.1 61.0 63.7 62.6 63.4 62.3 59.9 60*
Life expectancy at birth (total, 2014) 77.7 76.9 77.2 75.9 74.3 81.2 75 75*
Gross repl. rate (mean) 0.49 0.66 0.52 0.74 0.52 0.42 0.57 0.5*
Net repl. rate (mean) 0.59 0.85 0.62 0.95 0.68 0.63 0.70 0.7*
Pension tax rate (mean) 0.10 0.16 0.03 0.07 0.03 0 0.10 0.10*

Internal rate of return data, part I

Variable

τ0 = average labour-time gross tax rate on earnings, τun = tax rate for the unemployment benefits, τ = average lifetime gross tax rate, δ -, phi - average employment rate of higher education-level student, psec - average employment rate of secondary education-level, p˜ {\tilde p} - average weighted employment rate for secondary and tertiary levels, Ξ - survival rate for higher education students, τΔ - marginal tax rate for a person in a reference group, Θ - means a wage premium for each year of tertiary education, v - return on experience in the Mincerian equation, Pn - net income, Θn net wage premium for each year of tertiary education, g˜ {\tilde g} - growth in labour productivity over the past decade, ϖ - real growth rate of pensions, LE - life expectancy at birth, RR - pension benefit replacement rate. Further, p˜ {\tilde p} employment probability for people with upper secondary education, Y - length of the working period, Age0 - age at which school education starts, RA - effective retirement age, ñR - pension premium factor, Pc˜ P\tilde c - direct private cost of tertiary education, expressed as a percentage of the average wage, Y0 - secondary education graduates. OPPC - opportunity cost of schooling, DIRC - direct costs of schooling, IRR - internal rate of return on higher education.

 PL SK EE HU LV SI MT CY
τ0 0.39 0.41 0.40 0.47 0.44 0.43 0.29 0.3*
τun 0 0 0.15 0.27 0.24 0 0.10 0.1*
τ 0.22 0.24 0.28 0.29 0.31 0.28 0.29 0.3*
p˜ {\tilde p} 0.57 0.54 0.69 0.61 0.63 0.60 0.66 0.6*
phi 0.80 0.78 0.84 0.83 0.85 0.85 0.84 0.8*
psec 0.14 0.14 0.12 0.14 0.13 0.14 0.13 0.12*
Ξ 0.86 0.85 0.85 0.87 0.85 0.93 0.80 0.8*
τΔ 0.15 0.11 0.14 0.16 0.19 0.18 0.10 0.1*
Θ 0.13 0.14 0.09 0.13 0.14 0.17 0.20 0.2*
v 0.0004 0.0002 0.0001 0.0003 0.0002 0.0003 0.0001 0.0001*
Pn 0.01 0.09 0.08 0.09 0.08 0.09 0.08 0.06*
Θn 0.06 0.01 0.00 0.01 0.01 0.01 0.01 0.01*
g˜ {\tilde g} 0.027 0.032 0.030 0.026 0.040 0.018 0.011 0.010*
ϖ 0.05 0.06 0.08 0.07 0.06 0.08 0.03 0.04*
LE 77.7 76.9 77.2 75.9 74.3 81.2 75 75*
RA 62.1 61.1 63.7 62.6 63.4 62.3 59.9 60*
R −0.014 −0.017 −0.021 −0.013 −0.026 0.005 0.01 0.01*
Y 43.3 42.7 44.7 44.3 44.9 44.4 40.1 40*
τν 0.10 0.16 0.03 0.07 0.03 0.9 0.11 0.10*
RR 0.59 0.85 0.62 0.95 0.68 0.65 0.70 0.50*
ñR 0.0040 0.0071 0.0035 0.0062 0.0084 0.0021 0.005 0.0032
Pc˜ P\tilde c 0.013 0.088 0.142 0.123 0.091 0.182 0.121 0.111
Y0 42.9 42.7 43.8 44.1 43.8 44.2 43.0 44.0
OPPC 0.44 0.41 0.49 0.43 0.44 0.48 0.49 0.50
DIRC 0.12 0.10 0.10 0.14 0.10 0.11 0.18 0.15
IRR 0.18 0.21 0.14 0.17 0.16 0.20 0.15 0.14

Historical time series for the IRR (last column covers this study estimates)

Countries* 1996 1997 1998 1999 2000 2001 2010 2011 2013 Average for 2014–2016
BE 0.06 0.06 0.07 0.06 0.06 0.07 - 0.14 0.11 0.17
FI 0.09 0.09 0.09 0.09 0.09 0.09 - 0.06 0.11 0.18
LU 0.12 0.11 0.10 0.11 0.11 0.10 0.10 0.12 - 0.18
GR 0.05 0.05 0.06 0.05 0.05 0.05 0.06 0.12 0.08 0.18
IE 0.07 0.08 0.11 0.10 0.09 0.09 0.15 0.11 0.17 0.21
MT - - - - - - - 0.11 0.20
CY - - - - - - - 0.11 0.16
FR 0.09 0.09 0.10 0.09 0.10 0.09 - 0.07 0.09 0.13
AT 0.08 0.07 0.08 0.08 0.09 0.08 - 0.07 0.10 0.17
NL 0.07 0.06 0.06 0.04 0.05 0.06 - 0.11 0.07 0.14
SI - - - - - - - 0.14 0.17 0.20
IT 0.05 0.06 0.06 0.06 0.06 0.06 - 0.09 0.07 0.18
ES 0.06 0.04 0.04 0.03 0.02 0.05 - 0.06 0.11 0.14
HU 0.07 0.06 - - - - - 0.21 0.22 0.17
DE 0.06 0.06 0.06 0.07 0.07 0.06 - - 0.08 0.17
PL - 0.08 0.09 0.09 0.07 - - 0.14 0.22 0.18
PT 0.16 0.13 0.14 0.12 0.14 0.11 - - 0.16 0.13
SK - - - - - - - 0.13 0.20 0.21
EE - - - - - - - 0.06 0.20 0.14
LV - - - - - - 0.19 0.08 - 0.16

Schooling and studying, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
Age at start of schooling, 2014 6 7 6 6 6 6 6 6 6 5 6 6
Schooling years, 2014 10.9 10.3 12.9 11.1 11.9 9.6 10.1 10.8 8.2 11.6 10.2 11.3
WB estimated years in school 11.9 14.2 13.9 10.9 11.7 9.5 10.2 12.3 7.8 12.5 10.7 11.6
Annual costs per student (thousand EUR) 11.9 13.5 12.7 12.2 14.3 9.5 8.4 12.6 8.4 10.3 8.4 30.8
Number of students (thousands) 496.4 305.9 2 890.0 2 383.7 842.6 1 971.8 1 863.5 423.3 356.9 201.7 677.4 6.9

Probability to achieve the degree, part I

Variable PL SK EE HU LV SI MT CY
Award probability 0.86 0.85 0.85 0.87 0.85 0.93 0.8 0.8*

Marginal tax rates from the Organisation for Economic Co-operation and Development data: gross–gross data, so including employers’ wedge, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
Total tax wedge, average: 2002–14 0.67 0.55 0.62 0.55 0.49 0.47 0.54 0.60 0.49 0.39 0.52 0.53

Pension system data, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
Real pension index., average 2002–14 0.03 0.03 0.03 0.03 0.03 0.02 0.03 0.03 0.02 0.03 0.03 0.03
Retirement age 59.9 61.9 62.7 59.3 62.9 62.2 61.4 62.2 67.0 65.3 61.5 61.9
Life expectancy at birth (total, 2014) 81.4 81.3 81.2 82.8 81.8 83.3 83.2 81.6 81.2 81.4 81.5 82.3
Gross repl. rate 0.41 0.55 0.42 0.59 0.91 0.74 0.71 0.77 0.55 0.37 0.54 0.56
Net repl. rate 0.62 0.63 0.57 0.71 1 0.80 0.81 0.90 0.68 0.45 0.70 0.69
Pension tax rate 0.06 0.16 0.10 0.11 0.27 0.16 0.20 0.17 0.09 0.11 0.13 0.09

Marginal tax rates from the Organisation for Economic Co-operation and Development data: gross–gross data, so including employers’ wedge, part I

Variable PL SK EE HU LV SI MT CY
Average labour tax, 2002–14 0.39 0.46 0.43 0.67 - 0.54 - 0.3*

Internal rate of return data, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
τ0 (= τ) 0.56 0.51 0.43 0.48 0.42 0.45 0.56 0.51 0.55 0.43 0.54 0.38
τun 0.33 0.23 0.11 0.39 0.54 0.45 0.30 0.22 0.49 0 0 0.15
τ 0.37 0.37 0.31 0.34 0.33 0.34 0.34 0.37 0.41 0.42 0.32 0.26
p˜ {\tilde p} 0.63 0.65 0.70 0.67 0.71 0.63 0.62 0.65 0.76 0.61 0.55 0.68
phi 0.85 0.86 0.87 0.79 0.89 0.77 0.78 0.84 0.84 0.81 0.73 0.83
psec 0.13 0.13 0.12 0.11 0.12 0.12 0.13 0.29 0.10 0.13 0.13 0.12
Ξ 0.81 0.96 0.91 0.81 0.81 0.78 0.86 0.88 0.91 0.97 0.81 0.71
τΔ 0.23 0.20 0.19 0.25 0.27 0.13 0.16 0.27 0.18 0.09 0.11 0.17
v 0.0002 0.0002 0.0007 0.0004 0.0002 0.0002 0.0001 0.0001 0.0001 0.0001 0.0001 0.00001
Pn 0.074 0.051 0.081 0.080 0.066 0.068 0.069 0.072 0.061 0.11 0.073 0.064
Θn 0.002 0.004 0.006 0.002 0.007 0.005 0.011 0.005 0.008 0.007 0.008 0.006
g˜ {\tilde g} 0.008 0.008 0.013 0.081 0.092 0.011 0.001 0.011 0.0102 0.038 0.001 0.004
ϖ 0.03 0.03 0.03 0.03 0.03 0.02 0.01 0.03 0.02 0.03 0.03 0.03
LE 81.4 81.3 81.2 82.8 81.8 83.3 83.2 81.6 81.2 81.3 81.5 82.3
RA 59.9 61.9 62.7 59.4 62.9 62.2 61.4 62.2 67.0 65.4 61.5 61.9
Y 43.0 44.6 43.8 42.3 45.0 46.6 45.3 45.4 52.8 48.8 45.4 44.6
τν 0.06 0.16 0.11 0.11 0.27 0.16 0.20 0.17 0.10 0.11 0.13 0.09
RR 0.62 0.63 0.57 0.71 1 0.80 0.81 0.90 0.68 0.45 0.70 0.69
ñR 0.0003 0.0025 0.0029 0.0016 0.0040 0.0002 0.0039 0.0040 0.0020 0.0031 0.0032 0.002
Pc˜ P\tilde c 0.013 0.028 0.003 0.006 0.027 0.010 0.003 0.023 0.166 0.043 0.18 0.02
Y0 42.1 40.1 42.8 42.5 45.2 46.7 45.2 43.9 53.2 47.6 44.9 44.3
OPPC 0.41 0.42 0.49 0.46 0.48 0.45 0.43 0.41 0.48 0.55 0.37 0.50
DIRC 0.07 0.07 0.05 0.07 0.03 0.09 0.06 0.07 0.08 0.04 0.18 0.02
IRR 0.17 0.18 0.17 0.13 0.11 0.14 0.18 0.18 0.13 0.21 0.15 0.14

Factor productivity, part II

Variable BE FI DE FR NL ES IT AT PT IE GR LU
Labour productivity, average: 2002–14 0.008 0.009 0.01 0.08 0.09 0.010 0.001 0.011 0.010 0.04 0.00 0.04
eISSN:
2084-1264
Język:
Angielski
Częstotliwość wydawania:
2 razy w roku
Dziedziny czasopisma:
Prawo, Prawo publiczne, inne
Kanał RSS czasopisma