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Returns to Investment in Education in the OECD Countries: Does Governance Quality Matter?

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  • Marwa Sahnoun

    (University of Sfax)

  • Chokri Abdennadher

    (University of Sfax)

Abstract

This paper shows labor market returns to investment in education as an essential component of the knowledge economy taking into account the quality of governance of the Organisation for Economic Co-operation and Development countries. Using panel data models, we found strong support for such a tradeoff, especially for tertiary education. The empirical results suggest that returns of education expenditure improve the labor market outcomes only to the extent that the quality of the institutions in the countries is sufficiently high. This implies that the level of governance quality affects education spending, which determines their effect on the unemployment rate.

Suggested Citation

  • Marwa Sahnoun & Chokri Abdennadher, 2022. "Returns to Investment in Education in the OECD Countries: Does Governance Quality Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1819-1842, September.
    • Handle: RePEc:spr:jknowl:v:13:y:2022:i:3:d:10.1007_s13132-021-00783-0
    DOI: 10.1007/s13132-021-00783-0
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