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The Rate of Return to Higher Education Over the Business Cycle

Author

Listed:
  • Phil Lewis

    (University of Canberra)

  • Michael Corliss

    (University of Canberra)

  • Anne Daly

    (University of Canberra)

Abstract

Currently there is only a scant literature available on the business cycle effect upon the private rate of return to higher education in Australia. This is despite the expectation that the business cycle would be of a significant consequence to the relative income of degree holders. This paper presents estimates of the rate of return in Australia associated with the completion of Bachelors degrees for a range of fields of study over the business cycle. The results show that for the average person there are strong incentives to complete these degrees, and the private rate of return compares favourably with the real long term real bond rate. However, there are considerable differences in rates of return according to gender and discipline of study. There also appear to be important business cycle effects on the rate of return to a university degree.

Suggested Citation

  • Phil Lewis & Michael Corliss & Anne Daly, 2013. "The Rate of Return to Higher Education Over the Business Cycle," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(2), pages 219-236.
    • Handle: RePEc:ozl:journl:v:16:y:2013:i:2:p:219-236
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    References listed on IDEAS

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    Cited by:

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    2. Ian W. Li, 2014. "Labour Market Performance of Indigenous University Graduates in Australia: An ORU Perspective," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 17(2), pages 87-110.
    3. Choi, Seonkyung & Li, Huihui & Ogawa, Keiichi, 2023. "Upper secondary vocational education and decent work in Indonesia: A gender comparison," International Journal of Educational Development, Elsevier, vol. 101(C).
    4. Leigh, Andrew, 2024. "Returns to Education in Australia 2001-2022," IZA Discussion Papers 17025, Institute of Labor Economics (IZA).
    5. Leszek Wincenciak, 2020. "Evolution of private returns to schooling over the business cycle in a transition economy," International Journal of Manpower, Emerald Group Publishing Limited, vol. 41(8), pages 1307-1322, May.
    6. Denise Jackson, 2020. "Accounting and Finance Graduate Employment Outcomes: Underemployment, Self‐employment and Managing Diversity," Australian Accounting Review, CPA Australia, vol. 30(3), pages 193-205, September.
    7. Joop Hartog & Sander Gerritsen, 2016. "Mincer Earnings Functions for the Netherlands 1962–2012," De Economist, Springer, vol. 164(3), pages 235-253, September.

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    More about this item

    Keywords

    Human Capital Skills Occupational Choice Labor Productivity; Professional Labor Markets Occupational Licensing; Particular Labor Markets Public Policy;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

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