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Returns on investment in education (literature review)

This report sumarises the literature on the rate of returns from public investment in education on various outcomes, including student achievements, wages or employability. The focus is on public expenditures.

Details

Publication date
16 September 2019
Author
European Expert Network on Economics of Education (EENEE)
Geographical scope
  • European Union
Level of education focus
  • Early childhood education and care (ECEC)
  • Higher education
  • School education
Thematic areas covered
  • Educational attainment and participation in education
  • Educational effectiveness and efficiency
  • Investment in education, economic impact of education
  • Quality and inclusive education for all
  • Skills development
  • Teachers and trainers

Description

This literature review evaluates the returns on public investment in education across different stages and contexts. It finds that returns tend to be highest for early childhood and preschool education, with diminishing returns at higher education levels. Quality investments, such as in teacher training and pay, significantly improve student outcomes, particularly in developing countries. 

Class size reductions generally show positive effects but are often cost-ineffective. Investments in digital technologies and new learning materials have limited or no proven impact on student outcomes. Educational investments also positively influence broader societal indicators like health, civic behavior, and poverty reduction. 

The study highlights the importance of tailoring education policy to a country’s development stage and focusing on evidence-based, long-term strategies.

Author

Paweł Bukowski

Cite as

Paweł Bukowski (2019). 'Returns on Investment in Education (literature review)', EENEE Ad hoc Report 1, 2019

 

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Files

  • 16 SEPTEMBER 2019
Returns on investment in education (literature review)