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The beneﬁts are increased revenues from taxes on higher wages. Social costs of return are the sum of the private and the ﬁscal. But they are an underestimate because they do not include possible externalities coming from additional education such as reduced health costs, greater social cohesion, more informed and effective citizens, and the like. org/edu/eag2005. 10. See also De la Fuente and Ciccone 2002. 11. The OECD methodology also included the hypothetical case where a 40-year-old individual goes for a higher level of education.
Graduates of tertiary-level education earn more than upper secondary and post secondary graduates. The earning differentials between graduates of tertiary and upper secondary education are more pronounced than those between upper secondary and lower secondary or below, “suggesting that in many countries upper secondary forms a break point beyond which additional education attracts a particularly high premium” (OECD 2005b, p. 118). 7 For example, the earnings premium for males ages 25–64 with tertiary-level education ranged from 27 percent in the Republic of Korea to 174 percent in Hungary.
2 Source: Author’s calculations based on data from China Labor Statistical Yearbook 2005. 5. Secondary enrollment by province Shanghai Beijing Tianjin Inner Mongolia Zhejang Shaanxi Jiangsu Qinghai Jilin Xinjiang Hubei Liaoning Chongqing Sichuan Hebei Shandong Hunan Shanxi Fujian Gansu Jiangxi Henan Guangdong Heilongjiang Ningxia Yunnan Anhui Hainan Guangxi Guizhou Tibet 50 60 70 80 90 100 Percent Source: MOE 2001. Massive structural change, restructuring, and rising unemployment China’s economy has been growing at more than 9 percent a year, changing the economic structure.