Education Funding Report Roundup

Schooling Pays Off, OECD Says

By Sean Cavanagh — September 15, 2009 1 min read

As nations around the globe, including the United States, attempt to crawl out of a deep recession, evidence suggests they would be wise to invest in education because of the strong economic payoff it brings across their societies and to individual workers, a new report says.

The Organization for Economic Cooperation and Development reaches that conclusion in its newest “Education at a Glance” report, which compares educational and economic data across nations.

Encouraging students to stick with K-12 education and pursue higher education makes sense, the authors say, because unemployment is likely to remain high for some time and seeking additional in-school training brings strong financial benefits when compared to looking for a job that may not be there. According to the OECD’s data, a male worker who obtains a college education earns $186,000 more on average in gross earnings and benefits over a lifetime than a worker who does not in the industrialized nations studied.

In the United States, for American males who obtain a college education, the difference in the lifetime payoff is $367,000, according to the OECD, the highest gross-earnings payoff among the nations studied. It’s $229,000 for females.

While governments pour significant public funding into college education, private investment exceeds public spending in most of the nations studied, the Paris-based organization says. American students are asked to pay a greater amount—about $90,000, in direct costs and in indirect costs, such as lost earnings—than students in any other country evaluated. Tuition fees in the United States are also the highest of any country.

The data reveal that the value of higher education is significantly larger than the total public economic costs, Andreas Schleicher, the head of indicators and analysis for OECD’s education division, explained in an e-mail. Public investment in higher education bears high returns, he wrote, particularly in countries where high private costs may be the bottleneck for expanding higher education participation.

A version of this article appeared in the September 16, 2009 edition of Education Week

Events

Student Well-Being Webinar Boosting Teacher and Student Motivation During the Pandemic: What It Takes
Join Alyson Klein and her expert guests for practical tips and discussion on how to keep students and teachers motivated as the pandemic drags on.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being Webinar
A Holistic Approach to Social-Emotional Learning
Register to learn about the components and benefits of holistically implemented SEL.
Content provided by Committee for Children
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Well-Being Webinar
How Principals Can Support Student Well-Being During COVID
Join this webinar for tips on how to support and prioritize student health and well-being during COVID.
Content provided by Unruly Studios

EdWeek Top School Jobs

Interdisciplinary STEAM Specialist
Smyrna, Georgia
St. Benedict's Episcopal School
Interdisciplinary STEAM Specialist
Smyrna, Georgia
St. Benedict's Episcopal School
Arizona School Data Analyst - (AZVA)
Arizona, United States
K12 Inc.
Software Engineer
Portland, OR, US
Northwest Evaluation Association

Read Next

Education Funding Opinion What's It Take for Philanthropy to Help Rural Schools?
Place-based philanthropy has enormous potential to revitalize rural communities. The trick is, it’s tough to get this sort of approach right.
4 min read
Image shows a multi-tailed arrow hitting the bullseye of a target.
DigitalVision Vectors/Getty
Education Funding Summer School, Extended Learning a Priority in $129 Billion COVID-19 Relief Bill
The reconciliation bill from House Democrats is an early attempt at what's shaping up to be a new federal aid package for education.
5 min read
A staff member holds the door open for kids on the first day of school at Goodwin Frazier Elementary School in New Braunfels, Texas on Tuesday, Aug. 25, 2020.
A staff member holds the door open for kids on the first day of school at Goodwin Frazier Elementary School in New Braunfels, Texas on Tuesday, Aug. 25, 2020.
Mikala Compton/Herald-Zeitung via AP
Education Funding Details of Biden's Education Relief Pitch Prioritize Smaller Classes, Avoiding Layoffs
The administration's breakdown of COVID-19 needs also includes $50 billion for social distancing and $29 billion for learning recovery.
5 min read
Image of the White House seal
Bet Noire/Getty
Education Funding Lawmakers Push $75 Billion for Learning Recovery Among Trio of COVID-19 Bills
The legislation, which also covers school infrastructure and education jobs, could become the vehicle for Biden's K-12 relief plan.
6 min read
Rep. Bobby Scott, D-Va., speaks during a news conference in Washington on June 24, 2020.
Rep. Bobby Scott, D-Va., speaks during a news conference in Washington on June 24, 2020.
Manuel Balce Ceneta/AP