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The Pecuniary Costs of Early School Leaving and Poor Basic Cognitive and Non-cognitive Skills

Author

Listed:
  • Brunello, Giorgio

    (University of Padova)

  • Rocco, Lorenzo

    (University of Padova)

Abstract

We produce estimates of the pecuniary costs of inadequate investment in human capital for countries, macro regions and the world at large. These costs are borne by individuals (private costs), the government (fiscal costs), and society, which includes both individuals and the government (social costs). We estimate that, in 2030, the global annual private costs of having a share of children with less than basic skills at its 2021 value rather than at zero are equal to 9,154 billion 2015 dollars, or 17.1 percent of global GDP in 2030.

Suggested Citation

  • Brunello, Giorgio & Rocco, Lorenzo, 2024. "The Pecuniary Costs of Early School Leaving and Poor Basic Cognitive and Non-cognitive Skills," IZA Discussion Papers 17296, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17296
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    More about this item

    Keywords

    private; low basic skills; early school leaving; fiscal and social costs;
    All these keywords.

    JEL classification:

    • I24 - Health, Education, and Welfare - - Education - - - Education and Inequality
    • I25 - Health, Education, and Welfare - - Education - - - Education and Economic Development

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