OECD STUDY SHOWS PUBLIC INVESTMENT IN TERTIARY EDUCATION REAPS ECONOMIC REWARDS

Strict OECD embargo: 10:00am (UK) Tuesday 11 September 2012

Investment in higher education improves employment prospects and earning potential and delivers public value, a new study from the Organisation for Economic Co-operation and Development (OECD) showed today (Tuesday).

The news comes as the National Union of Students (NUS) prepares to host students from around the globe next week as part of a Student Leadership Summit. The summit, which will be held at the University of East London will bring together student leaders from around the world to share, learn and critique global education*.

OECD’s ‘Education at Glance 2012’ report shows that according to the latest figures available (2008) in the UK, the public return on tertiary education was almost six times the initial direct public investment.

The public net value, including income tax and social security payments, over their working lifetime for individuals in the UK obtaining tertiary education as part of their initial education was $86,550 for a man and $91,365 for a woman when compared with those who have obtained an upper secondary education. This is in comparison to a initial direct higher education public cost of $15,151**.

The OECD report also showed graduates’ job prospects are much better than non-graduates and had improved. The average employment rate of individuals aged 25-64 with higher education in the UK increased, even in the wake of the global economic crisis - from 85% in 2008 to 85.1% in 2010. This employment rate for both those with lower secondary education and those with upper secondary education decreased by 3.3 percentage points across the same time period***.

Liam Burns, NUS President said:

“Investment in the public good of education reaps huge economic, social, and cultural rewards. We urgently need a plan for growth that charts a course away from austerity and which lays the foundations for future prosperity.”

“Next week’s Global Student Leadership Summit will bring together student leaders from more than forty countries to share, learn and build a positive vision for the future of global education.”

ENDS

OECD’s ‘Education at a Glance’ will be available here: http://www.oecd.org/

* NUS Global Student Leadership Summit, 18-21 September 2012

www.globalstudentleadership.org

** Table A9.4. [1/2] Public net present value and internal rate of return for an individual obtaining tertiary

education as part of initial education (2008 or latest available year) & Table A9.4. [2/2] Public net present value and internal rate of return for an individual obtaining tertiary

education as part of initial education (2008 or latest available year) p.180-1

***Table A7.3a. [1/2] Trends in employment rates of 25-64 year-olds, by educational attainment (1998-2010): Number of 25-64 year-olds in employment as a percentage of the population aged 25-64, p.132