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A new look at private rates of return to education in Switzerland

Stefan C. Wolter (Stefan C. Wolter is Director of the Swiss Coordination Centre for Research in Education, Aarau and University of Applied Science, Berne School of Economics, Switzerland.)
Bernhard A. Weber (Bernhard A. Weber is State Secretariat of Economy, Berne, Switzerland.)

Education + Training

ISSN: 0040-0912

Article publication date: 1 November 1999

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Abstract

Shows the results of a new model for calculating private rates of return to education. The so‐called “cost‐benefit‐model” takes into account the influence of the existing wage structure, institutional factors as the cost of education and the fiscal system and risk premiums for dropping out of school as well as differences in unemployment. The model produces results that are relatively easy to interpret at the economic policy level and can easily be used to simulate the effects of changing parameters. The first empirical results for Switzerland indicate that once educational costs have been deducted, wage‐earning advantages for different educational groups are insignificant. The empirical results speak against the political demand – at least in Switzerland – that those who directly benefit from education should pay more towards its costs.

Keywords

Citation

Wolter, S.C. and Weber, B.A. (1999), "A new look at private rates of return to education in Switzerland", Education + Training, Vol. 41 No. 8, pp. 366-373. https://doi.org/10.1108/00400919910298639

Publisher

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MCB UP Ltd

Copyright © 1999, MCB UP Limited

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