We examine the importance of adult functional literacy skills for individuals using a quantile regression methodology. The inclusion of the direct measure of basic skills reduces the return to schooling by 27%, equivalent to two additional years of schooling, while a one standard deviation increase in the score increases earnings by 20%. For those…

In the literature of higher education cost function study, enough knowledge is created in the area of economy scale in the context of developed countries but the knowledge of input demand is lacking. On the other hand, empirical knowledge in the context of developing countries is very meagre. The paper fills up the knowledge gap, estimating a…

This paper uses a new data-set for cumulative national investment in formal schooling and a new instrument for schooling to estimate the national return on investment in 61 countries. These estimates are combined with data on the private rate of return on investment in schooling to estimate the external rate of return. In 1990 the external rate of…

Empirical evidence shows that the quality of learning in public schools is very low in India. There is also a robust belief that private schools offer better-quality learning at a lower cost and are a cost-effective alternative to public schools. Most of the evidence on which this latter claim is based does not correct for selection bias--students…

Develops a valuation model of educational output based on individual earnings from cross-sectional data; describes the problems associated with defining certain elements of the model and proposes adjustments related thereto; uses model to estimate the value of university education in Spain. (Contains 68 references.) (PKP)