WPSASS

POLICY RESEARCH WORKING PAPER 288 1

Returns to Investment in Education

A Further Update

George Psacharopoulos
Harry Anthony Patrinos

The World Bank

Latin America and the Caribbean Region
Education Sector Unit
September 2002
I
POLICY RESEARCH WORKING PAPER 2881

Abstract
Returns to investment in education based on human human capital theory. Psacharopoulos and Patrinos
capital theory have been estimated since the late 1950s. review and present the latest estimates and patterns as
In the 40-plus year history of estimates of returns to found in the literature at the turn of the century.
investment in education, there have been several reviews However, because the availability of rate of return
of the empirical results in attempts to establish patterns. estimates has grown exponentially, the authors include a
Many more estimates from a wide variety of countries, new section on the need for selectivity in comparing
including over time evidence, and estimates based on returns to investment in education and establishing
new econometric techniques, reaffirm the importance of related patterns.

This paper-a product of the Education Sector Unit, Latin America and the Caribbean Region-is part of a larger effort
in the region to document the benefits of investments in education. Copies of the paper are available free from the World
Bank, 1818 H Street NW, Washington, DC 20433. Please contact Nelly Vergara, room 17-004, telephone 202-473-0432,
fax 202-522-3135, email address [email protected]. Policy Research Working Papers are also posted on the Web
at http://econ.worldbank.org. Harry Patrinos may be contacted at [email protected]. September 2002. (28 pages)

The Policy Research Working Paper Senes disseminates the findings of work in progress to encourage the exchange of ideas about
development issues. An objective of the series is to get the findings out quickly, even if the presentationsare less than fully polished. The
papers carry the names of the authors and should be cited accordingly. The findings, interpretations,and conclusions expressed in this
paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the
countries they represent.

Produced by the Research Advisory Staff

 Returns to Investment in Education:
A Further Update

George Psacharopoulos and Harry Anthony Patrinos*

JEL codes: C13, J31

Psacharopoulos: University of Athens, Greece; Patrinos: World Bank. The views expressed in
this paper are the authors' and should not be attributed to the World Bank Group. Comments
received from Barry Chiswick and Walter McMahon are greatly appreciated. The excellent
contributions of Kyriakos Georgiades are greatly appreciated. We also acknowledge the research
assistance of Leila Mamedova and Anahit Poghosyan. Address all correspondence to Harry
Patrinos, The World Bank, 1818 H Street NW, Washington, DC 20433, USA; email:
hpatrinos(iworldbank.org.
I. Introduction

Returns to investment in education, in the modern/human capital sense of the term, have
been estimated since the late 1950s. In the 40-plus year history of estimates of returns to
investment in education, there have been several reviews of the empirical results in attempts to
establish patterns (see Psacharopoulos 1973, 1985, 1994).

The rise in earnings inequality experienced during the 1980s and 1990s in many countries
led to renewed interest in estimates of returns to schooling (see, for example, Murphy and Welch
1992). A very large literature suggests that systematic changes in the production process led to
changes in the demand for certain types of labor. It was argued much earlier in the literature that
education is more productive the more volatile the state of technology (Nelson and Phelps 1966;
Welch 1970; Griliches 1969; Schultz 1975).

A more selective rates of return estimate review focusing on the causality debate between
schooling and earnings (Card 2001) reaffirms Griliches' (1970) conclusion that the effect of
ability and related factors does not exceed 10 percent of the estimated schooling coefficient.
Instrumental variable (IV) estimates of the returns to education based on family background are
higher than classic OLS estimates (based on Mincer-Becker-Chiswick). The estimation method
makes little difference on the returns to education.

In this paper, we begin by following the tradition and present latest estimates and
patterns. However, because the availability of rate of return estimates has grown exponentially,
we include a new section on the need for selectivity in comparing retums to investment in
education and establishing related patterns.

II. The Latest Patterns

The classic pattern of falling returns to education by level of economic development and
level of education are maintained (see Tables 1 and 2 and Figures 1 to 4). Also, in the updated
data set the private returns to higher education are increasing. These new results are based on 6
new observations and updated estimates for 23 countries since the last review (Psacharopoulos
1994). Estimates of the raw returns to education for 98 countries are presented in Annex Tables
Al to A4. These estimates cut along policy issues in the literature. An effort has been made to
select rates of return as comparable as possible (but see section III below).

Private returns are higher than "social" returns where the latter is defined on the basis of
private benefits but total (private plus external) costs (Figure 1). This is because of the public
subsidization of education and the fact that typical social rate of return estimates are not able to
include social benefits. Nevertheless, the degree of public subsidization increases with the level
of education, which has regressive income distribution implications.

Overall, the average rate of return to another year of schooling is 10 percent. Returns to
education by level of country income are presented in Table 3 (and Figure 5). The highest
returns are recorded for low and middle-income countries. This update includes new country
estimates and updated estimates for 42 countries.

Average returns to schooling are highest in the Latin America and the Caribbean region
and for the Sub-Saharan Africa region (Table 4). Returns to schooling for Asia are at about the
world average. The returns are lower in the high-income countries of the OECD. Interestingly,
average returns to schooling are lowest for the non-OECD European, Middle East and North
African group of countries.

During the last 12 years, average returns to schooling have declined by 0.6 percentage
points (see Annex Table A4). At the same time, average schooling levels have increased.
Therefore, and according to theory, everything else being the same, an increase in the supply of
education has led to a slight decrease in the returns to schooling.

Overall, women receive higher returns to their schooling investments (Table 5 and Figure
6). But the returns to primary education are much higher for men (20 percent) than for women
(13 percent). Women, however, experience higher returns to secondary education (18 versus 14
percent).

III. A More Selective Approach

Returns to education compilations, as presented above, have been attacked in the

literature (see Bennell 1996), although not for the right reasons (see Psacharopoulos 1996). The
real reason one should be skeptical about indiscriminate rate of return compilations, and in spite
of the efforts of the compilers, is that in the original works the estimates are rarely fully
comparable. There are two main sources of non-comparability: data sample coverage and
methodology.

Ideally, a rate of return to investment in education should be based on a representative

sample of the country's population. But in reality this is the exception rather than the rule. This
is problematic when the estimated rates of return are based on a survey of firms - rather than
households - because firm-based samples are highly selective. In order to control survey costs,
such samples focus on large firms with many employees. Second, the questionnaire is typically
filled by the payroll department rather than by the individual employee. Typically, this approach
leads to the use of samples concentrated only in urban areas.

Another problem occurs when rate of return estimates are based on samples that include
civil servants. This is a problem because public sector wages typically do not reflect market
wages. Of course, in many countries - although fewer now than in the past - the majority of
university graduates end up in public sector employment. The concentration of graduates in
public sector employment is identified as a problem in growth studies (see, for example,
Pissarides 2000). However, civil service pay based rate of return estimates are useful in private
calculations regarding the incentives set by the state to invest in education - and opt for
employment in the public sector.

2
 Turning to methodology, a less serious problem occurs when wage effects are confused
for returns to education. Mincer (1974) has provided a great service and convenience in
estimating returns to education by means of the semi-log earnings function - first done in Becker
and Chiswick (1967). However, for the sake of that convenience, many researchers use the raw
coefficients of education in the extended (dummy-form) function to report returns to education,
whereas these are wage effects.

Another methodological limitation, despite Becker's (1964) warning, is that many

researchers feel obliged to throw in the regression whatever independent variables they seem to
have in the data set, including occupation. In effect, this procedure leads to stealing part of the
effect of education on earnings that comes from occupational mobility.

Perhaps the returns to education estimates that stem from the work of Ashenfelter and
others using twins (Ashenfelter and Krueger 1994; Ashenfelter and Rouse 1998; Miller, Mulvey
and Martin 1995; Rouse 1999; Behrman and Rosenzweig 1999) and other natural experiments
are the most reliable of all. According to this work, the overall private rate of return to
investment in education in the United States is of the order of 10 percent. This figure establishes
a benchmark for what the social rate of return would be (a couple of percentage points lower, if
not adjusted for externalities), or what the rate of return should be in a country with a lower per
capita income than that of the United States (several percentage points higher, as based on the
extrapolation of the non-so-comparable returns to education presented earlier).

Incidentally, estimates of the returns to education based on analysis of twins' eamings -

as well as estimates using IV measures (see, for example, Card 2001) - come to an average rate
of return that is very similar to the global average presented in this compilation: 10 percent.

IV. Extensions

There is a concern in the literature with what might be called "social" rates of return that
include true social benefits, or externalities. Efforts to make such estimates are numerous, but
the estimates vary widely. The earnings of educated individuals do not reflect the external
benefits that affect society as a whole but are not captured by the individual. Such benefits are
known as externalities or spillover benefits, since they spill over to other members of the
community. They are often hard to identify and even harder to measure. In the case of
education, some have succeeded in identifying positive externalities but few have been able to
quantify them (but see Weisbrod 1964; Haveman and Wolfe 1984). If one could include
externalities, then social rates of return may well be higher than private rates of return to
education. A recent review finds that empirical evidence is scarce and inconclusive, providing
some support for human capital externalities, but not very strong (Venniker 2001). These studies
estimate extemalities in the form of individual's human capital enhancing the productivity of
other factors of production through channels that are not internalized by the individual (similar to
Lucas' (1988) theory). As Venniker (2001) states, evidence is not unambiguous. In fact, some
estimates give negative values, while others give very high estimates.

3
 The evidence comes from a few studies. The cross-country regressions take the log of
GDP per capita explained by average schooling and additional control variables. The micro
studies refer to individual log wage explained by individual years of schooling, average years of
schooling in a relevant geographical area, and additional control variables. The social returns
equal the sum of the two schooling coefficients. Heckman and Klenow (1997) estimate the
externality by comparing the schooling coefficient from cross-country regressions with those
from cross-individual regressions. When they take into account-differences in technology, social
returns become similar to private returns. Rauch (1993) looks at the effect of average education
on workers' wages and finds significant externalities. However, average and own education may
*be highly correlated. Acemoglu and Angrist (2000) correct for this by using instrumental
variables. A few studies in Africa have focused on estimating external benefits of education in
agriculture using the education of neighboring farmers. A one year rise in the average primary
schooling of neighboring farmers is associated with a 4.3 percent rise in output compared to a 2.8
percent effect of own farmer primary education in Uganda (Appleton and Balihuta 1996, reported
in Appleton 2000). Another study finds 56 percent and 2 percent figures for Ethiopia, but seems
rather too high (Weir 1999, reported in Appleton 2000). The results overall are inconclusive.

V. Policy Issues

Not only has the academic literature on returns to schooling increased, as is evidenced
here, both in quantity and quality, but the policy implications have changed, too. No longer are
returns to education seen as prescriptive, but rather as indicators, suggesting areas of
concentration. A good example is the impact of technology on wage differentials, which led to a
huge literature on changing wage structures (see, for example, Krueger 1993; Patrinos 2001).

At the same time, the importance of returns to education is seen in their adoption as a key
indicator by the OECD (2001a) in their annual Education at a Glance series and other policy
documents (OECD 2001b; OECD 1997). Increasingly, governments and other agencies are
funding studies of returns to education along with other research, to guide macro policy decisions
about the organization and financing of education reforms. This was the case in the United
Kingdom's higher education reforms as well as the Australian higher education financing
reforms.

Innovative use of rate of return studies is being used to both set overall policy guidelines
and to evaluate specific programns. Examples include the Indonesia school building program
(Duflo 2001), India's blackboard project (Chin 2001) and Ethiopia's major sector investment
program (World Bank 1998).

Above all, returns to schooling are a useful indicator of the productivity of education and
incentive for individuals to invest in their own human capital. Public policy needs to heed this
evidence in the design of policies and crafting of incentives that both promote investment and
ensure that low-income families make those investments.

4
VI. Conclusion

By way of summary, and based on the fix provided by the newer quasi-experimental
research on the economics of education, investment in education behaves in a more or less
similar manner as investment in physical capital. In advanced industrial countries, the returns to
human and physical capital tend to be equated at the margin.

At the same time, we should point to a major research gap, which is the marriage between
the micro and the macro evidence on the returns to education. Whereas at the micro case, as
amply demonstrated above, it is established beyond any reasonable doubt that there are tangible
and measurable returns to investment in education, such evidence is not as consistent and
forthcoming in the macro literature (see, for example, Pritchett 2001; and Psacharopoulos 2000
and Krueger and Lindahl 1998 for a different perspective).

More research on the social benefits of schooling is needed. For developing countries,
there is a need for more evidence on the impact of education on earnings using quasi-
experimental design. There are more opportunities today for this type of research. Moreover,
this research needs to be used to create programs that promote more investment and reform
financing mechanisms.

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Weir, Sharada. 1999. "The Effects of Education on Farmer Productivity in Rural Ethiopia."
Centre for the Study of African Economies Working Paper No. WPS/99-7.

Weisbrod, B.A. 1964. External Benefits of Education. Princeton University, Industrial

Relations Section.

Welch, F. 1970. "Education in Production." Journalof PoliticalEconomy 78(1): 35-59.

World Bank. 1996a. Republic of Ghana: Basic Education Sector Improvement Program
(Report No. 15570-GH). Washington, D.C.: World Bank.

World Bank. 1996b. Bolivia: Poverty, Equity, and Income. (Report No. 15272-BO).
Washington, D.C.: World Bank.

World Bank. 1998. Ethiopia: EducationSector Development Program(Report No. 17739-ET).

Washington, D.C.: World Bank.

Table 1. Returns to Investment in Education by Level, Full Method, Latest Year,

Regional Averages (Percentage)
Social Private
Region Primary Secondary Higher Primary Secondary Higher
Asia 16.2 11.1 11.0 20.0 15.8 18.2
Europe/Middle East/North Africa 15.6 9.7 9.9 13.8 13.6 18.8
Latin America/Caribbean 17.4 12.9 12.3 26.6 17.0 19.5
OECD 8.5 9.4 8.5 13.4 11.3 11.6
Sub-Saharan Africa 25.4 18.4 11.3 37.6 24.6 27.8

12
World 18.9 13.1 10.8 26.6 17.0 19.0
Source: Table Al.
* Non-OECD.

13
 Table 2. Returns to Investment in Education by Level, Latest Year, Averages by per
capita Income Group (Percentage)
Mean per
capita Social Private
Per Capita Income Group (IJS$) Primary Secondary Higher Primary Secondary Higher
High Income ($9,266 or more) 22,530 13.4 10.3 9.5 25.6 12.2 12.4
Low Income ($755 or less) 363 21.3 15.7 11.2 25.8 19.9 26.0
MiddleIncome(to$9,265) 2,996 18.8 12.9 11.3 27.4 18.0 19.3
World 7,669 18.9 13.1 10.8 26.6 17.0 19.0
Source: Table Al.

Table 3. The Coefficient on Years of Schooling: Mean Rate of Return (based on

Mincer-Becker-Chiswick)

Mean per capita Years of Coefficient

Per Capita Income Group (US$) schooling (percent)
High Income ($9,266 or more) 23,463 9.4 7.4
Low Income ($755 or less) 375 7.6 10.9
Middle Income (to $9,265) 3,025 8.2 10.7
World 9,160 8.3 9.7
Source: Table A2.

Table 4. The Coefficient on Years of Schooling: Rate of Return (based on Mincer-

Becker-Chiswick), Regional Averages

Mean per Years of Coefficient

capita schooling (percent)
Region (US$)
Asia 5182 8.4 9.9
Europe/Middle East/North Africa 6299 8.8 7.1
Latin America/Caribbean 3125 8.2 12.0
OECD 24582 9.0 7.5
Sub-Saharan Africa 974 7.3 11.7

World 9160 8.3 9.7

Source: Table A2.
* Non-OECD.

14
 Table 5. Returns to Education by Gender (percentage)

Educational Level Men Women

Primary 20.1 12.8
Secondary 13.9 18.4
Higher 11.0 10.8
Overall 8.7 9.8
Source: Table A3.

35/ E5 Private E Social

30 26.6
25 18.9 190.
204~~~~~1.

e1.Retuns to ivestmen ineduatbn bybvel,bestye 10.8

15 1

0
Primary Secondary Higher
Figure 1. Returns to investmrent ineducation by level, latest year

15
 o Asia o Europe/Wddle EasVNorth Africa Latin Arrerica/Caribbean X OECD x Sub-Saharan Africa
13 -

12 -- ----- ,

10 . __ _ _. . i af | _

7 -- . _--_-_-X-__-__ - -_-_-_

6-
6 7 8 9 10

Figure 2. Mincerian Retums and mean years of schooling

30- - E Primary O Secondary 0 Higher

25-
21.3
20 8.8
~
15- ~ ~ 1

363 2,996 22,530

Per Capita Income (0
Figure 3. Social retums to investment in education by income level

16
 Private Rate of Retum (%/6)

40- Primary Secondary O Higher

30-/

20-L

101

363 1,698 4,852 22,530

Per Capita Income
Fiaure 4. Private returns to investment in education bv income

Rate of Return (0/4

9.8-
9.6-
9.4-
9.2- 8.7
9.0
8.8 -
8.6 --
8.4
8.2
8.0-
m
Men Women
Figure 6. Mincerian returns to education
by gender

17
 APPENDIX

Table Al. Returns to investment in education by level (percentage) full method, latest year
Social Private
Country Year Prim. Sec. Higher Prim. Sec. Higher Source
Argentina 1989 8.4 7.1 7.6 10.1 14.2 14.9 Psacharopoulos (1994)
Australia 1976 16.3 8.1 21.1 Psacharopoulos (1994)
Austria 1981 11.3 4.2 Psacharopoulos (1994)
Bahamnas 1970 20.6 26.1 Psacharopoulos (1994)
Belgium 1960 17.1 6.7 21.2 8.7 Psacharopoulos (1994)
Bolivia 1990 13.0 6.0 13.0 20.0 6.0 19.0 Psacharopoulos et al. (1997)
Botswana 1983 42.0 41.0 15.0 99.0 76.0 38.0 Psacharopoulos (1994)
Brazil 1989 35.6 5.1 21.4 36.6 5.1 28.2 Psacharopoulos (1994)
Burkina Faso 1982 20.1 14.9 21.3 Psacharopoulos (1994)
Canada 1994 7.8 13.0 Cohn (1997)
Chile 1989 8.1 11.1 14.0 9.7 12.9 20.7 Psacharopoulos (1994)
China 1993 14.4 12.9 11.3 18.0 13.4 15.1 Hossain(1997)
Colombia 1989 20.0 11.4 14.0 27.7 14.7 21.7 Psacharopoulos (1994)
Costa Rica 1989 11.2 14.4 9.0 12.2 17.6 12.9 Psacharopoulos (1994)
Cyprus 1979 7.7 6.8 7.6 15.4 7.0 5.6 Psacharopoulos (1994)
Denmark 1964 7.8 10.0 Psacharopoulos (1994)
Dominican Republic 1989 85.1 15.1 19.4 Psacharopoulos (1994)
Ecuador 1987 14.7 12.7 9.9 17.1 17.2 12.7 Psacharopoulos (1994)
El Salvador 1990 16.4 13.3 8.0 18.9 14.5 9.5 Psacharopoulos (1994)
Estonia 1995 14.0 2.2 10.3 Noorkoiv et al. (1998)
Ethiopia 1996 14.9 14.4 11.9 24.7 24.2 26.6 World Bank (1998)
France 1976 14.8 20.0 Psacharopoulos (1994)
Germany (West) 1978 6.5 10.5 Psacharopoulos (1994)
Ghana 1967 18.0 13.0 16.5 24.5 17.0 37.0 Psacharopoulos (1994)
Greece 1993 6.5 5.7 8.3 8.1 Magoula and Psacharopoulos (1999)
Guatemala 1989 33.8 17.9 22.2 Psacharopoulos (1994)
Honduras 1989 18.2 19.7 18.9 20.8 23.3 25.9 Psacharopoulos (1994)
Hong Kong 1976 15.0 12.4 18.5 25.2 Psacharopoulos (1994)
Hungary 1993 6.0 2.6 8.2 13.4 Varga (1995)
India 1995 2.6 17.6 18.2 Kingdon (1998)
Indonesia 1989 11.0 5.0 Psacharopoulos (1994)
Iran 1976 15.2 17.6 13.6 21.2 18.5 Psacharopoulos (1994)
Israel 1958 16.5 6.9 6.6 27.0 6.9 8.0 Psacharopoulos (1994)
Italy 1969 17.3 18.3 Psacharopoulos (1994)
Ivory Coast 1984 25.7 30.7 25.1 Psacharopoulos (1994)
Jamaica 1989 17.7 7.9 20.4 15.7 Psacharopoulos (1994)
Japan 1976 9.6 8.6 6.9 13.4 10.4 8.8 Psacharopoulos (1994)
Kenya 1980 10.0 16.0 Psacharopoulos (1994)
Korea 1986 8.8 15.5 10.1 17.9 Psacharopoulos (1994)
Lesotho 1980 10.7 18.6 10.2 15.5 26.7 36.5 Psacharopoulos (1994)
Liberia 1983 41.0 17.0 8.0 99.0 30.5 17.0 Psacharopoulos (1994)
Malawi 1982 14.7 15.2 11.5 15.7 16.8 46.6 Psacharopoulos (1994)
Malaysia 1978 32.6 34.5 Psacharopoulos (1994)
Mexico 1992 11.8 14.6 11.1 18.9 20.1 15.7 CohnandAddison(1998)

18
Morocco 1970 50.5 10.0 13.0 Psacharopoulos (1994)
Nepal 1999 15.7 8.1 9.1 16.6 8.5 12.0 Parajuli (1999)
Netherlands 1965 5.2 5.5 8.5 10.4 Psacharopoulos (1994)
New Zealand 1991 12.4 9.5 13.8 11.9 Maani (1996)
Nicaragua 1996 13.6 10.4 14.7 Belli and Ayadi (1998)
Nigeria 1966 23.0 12.8 17.0 30.0 14.0 34.0 Psacharopoulos (1994)
Norway 1966 7.2 7.5 7.4 7.7 Psacharopoulos (1994)
Pakistan 1991 8.4 13.7 31.2 Katsis et al. (1999)
Panama 1989 5.7 21.0 21.0 Psacharopoulos (1994)
Papua New Guinea 1986 12.8 19.4 8.4 37.2 41.6 23.0 Psacharopoulos (1994)
Paraguay 1990 20.3 12.7 10.8 23.7 14.6 13.7 Psacharopoulos (1994)
Peru 1990 13.2 6.6 40.0 Psacharopoulos (1994)
Philippines 1988 13.3 8.9 10.5 18.3 10.5 11.6 Psacharopoulos (1994)
Puerto Rico 1959 24.0 34.1 15.5 68.2 52.1 29.0 Psacharopoulos (1994)
Senegal 1985 23.0 8.9 33.7 21.3 Psacharopoulos (1994)
Sierra Leone 1971 20.0 22.0 9.5 Psacharopoulos (1994)
Singapore 1998 16.7 10.1 13.9 22.2 12.9 18.7 Sakellariou (2001)
Somalia 1983 20.6 10.4 19.9 59.9 13.0 33.2 Psacharopoulos (1994)
South Africa 1980 22.1 17.7 11.8 Psacharopoulos (1994)
Spain 1991 7.4 8.5 13.5 Lassibille and Navarro (1998)
Sri Lanka 1981 12.6 16.1 Psacharopoulos (1994)
Sudan 1974 8.0 4.0 13.0 15.0 Psacharopoulos (1994)
Sweden 1967 10.5 9.2 10.3 Psacharopoulos (1994)
Taiwan 1972 27.0 12.3 17.7 50.0 12.7 15.8 Psacharopoulos (1994)
Tanzania 1991 7.9 8.8 Mason and Khandker (1997)
Thailand 1989 16.0 12.9 11.8 Schultz (1994)
TheGambia 1997 33.5 12.1 37.1 12.7 Edlnvest(1999)
Tunisia 1980 13.0 27.0 Psacharopoulos (1994)
Turkey 1987 8.5 1.9 8.6 16.2 Tansel (1994)
Uganda 1965 66.0 28.6 12.0 Psacharopoulos (1994)
United Kingdom 1986 8.6 7.5 6.5 Cohn and Addison (1998)
United States 1987 10.0 12.0 Psacharopoulos (1994)
Uruguay 1989 21.6 8.1 10.3 27.8 10.3 12.8 Psacharopoulos (1994)
Venezuela 1989 23.4 10.2 6.2 36.3 14.6 11.0 Psacharopoulos (1994)
Vietnam 1992 13.5 4.5 6.2 10.8 3.8 3.0 Moock et al. (1998)
Yemen 1985 2.0 26.0 24.0 10.0 41.0 56.0 Psacharopoulos (1994)
Yugoslavia 1986 3.3 2.3 3.1 14.6 3.1 5.3 Psacharopoulos (1994)
Zambia 1983 5.7 19.2 Psacharopoulos (1994)
Zimbabwe 1987 11.2 47.6 4.3 16.6 48.5 5.1 Psacharopoulos (1994)

19
 Table A2. The Coefficient on Years of Schooling, Latest Year
Mean years of Coefficient
Country Year schooling (percent) Source
Argentina 1989 9.1 10.3 Psacharopoulos (1994)
Australia 1989 8.0 Cohn and Addison (1998)
Austria 1993 7.2 Fersterer and Winter-Ebmer (1999)
Bolivia 1993 10.7 Patrinos (1995)
Botswana 1979 3.3 19.1 Psacharopoulos (1994)
Brazil. 1989 5.3 14.7 Psacharopoulos (1994)
Burkina Faso 1980 9.6 Psacharopoulos (1994)
Canada 1989 8.9 Cohn (1997)
Chile 1989 8.5 12.0 Psacharopoulos (1994)
China 1993 12.2 Hossain (1997)
Colombia 1989 8.2 14.0 Psacharopoulos (1994)
Costa Rica 1991 8.5 Funkhouser (1996)
Cote d'Ivoire 1986 6.9 20.1 Psacharopoulos (1994)
Cyprus 1994 5.2 Menon (1995)
Denmark 1990 4.5 Christensen and Westergard-Nielsen (1999)
Dominican Rep. 1989 8.8 9.4 Psacharopoulos (1994)
Ecuador 1987 9.6 11.8 Psacharopoulos (1994)
Egypt 1997 5.2 Larnbropoulos and Karadjia (1999)
El Salvador 1992 7.6 Funkhouser (1996)
Estonia 1994 10.9 5.4 Kroncke (1999)
Ethiopia 1972 6.0 8.0 Psacharopoulos (1994)
Finland 1993 8.2 Asplund (1999)
France 1977 6.2 10.0 Psacharopoulos (1994)
Germany 1988 7.7 Cohn and Addison (1998)
Ghana 1995 9.7 7.1 Jones (2001)
Greece 1993 7.6 Magoula and Psacharopoulos (1999)
Guatemala 1989 4.3 14.9 Psacharopoulos (1994)
Honduras 1991 9.3 Funkhouser (1996)
Hong Kong 1981 9.1 6.1 Psacharopoulos (1994)
Hungary 1987 11.3 4.3 Psacharopoulos (1994)
India 1995 10.6 Kingdon (1998)
Indonesia 1995 8.0 7.0 Duflo (2000)
Iran 1975 11.6 Psacharopoulos (1994)
Israel 1979 11.2 6.4 Psacharopoulos (1994)
Italy 1987 2.7 Brunello, Comi and Lucifora (1999)
Jamaica 1989 7.2 28.8 Psacharopoulos (1994)
Japan 1988 13.2 Cohn and Addison (1998)
Kenya 1986 8.0 16.0 Dabalen (1998)
Korea 1986 8.0 13.5 Ryoo, Nam and Carnoy (1993)
Kuwait 1983 8:9 4.5 Psacharopoulos (1994)
Malaysia 1979 15.8 9.4 Psacharopoulos (1994)
Mexico 1992 7.6 Psacharopoulos et al. (1996)
Morocco 1970 2.9 15.8 Psacharopoulos (1994)
Nepal 1999 3.9 9.7 Parajuli (1999)
Netherlands 1994 6.4 Hartog, Odink and Smits (1999)
Nicaragua 1996 12.1 Belli and Ayadi (1998)

20
Norway 1995 5.5 Barth and Roed (1999)
Pakistan 1991 15.4 Katsis, Mattson and Psacharopoulos (1999)
Panama 1990 9.2 13.7 Psacharopoulos (1994)
Paraguay 1990 9.1 11.5 Psacharopoulos (1994)
Peru 1990 10.1 8.1 Psacharopoulos (1994)
Philippines 1998 8.8 12.6 Schady (2000)
Poland 1995-1996 7.0 Nesterova and Sabirianova (1998)
Portugal 1991 8.6 Cohn and Addison (1998)
Puerto Rico 1989 15.1 Griffin and Cox Edwards (1993)
Russian Federation 1996 11.7 7.2 Nesterova and Sabirianova (1998)
Singapore 1998 9.5 13.1 Sakellariou (2001)
South Africa 1994 7.1 4.1 Dabalen (1998)
Spain 1991 7.2 Mora (1999)
Sri Lanka 1981 4.5 7.0 Psacharopoulos (1994)
Sudan 1989 10.2 9.3 Cohen and House (1994)
Sweden 1991 5.0 Cohn and Addison (1998)
Switzerland 1991 7.5 Weber and Wolter (1999)
Taiwan 1972 9.0 6.0 Psacharopoulos (1994)
Tanzania 1980 11.9 Psacharopoulos (1994)
Thailand 1989 11.5 Patrinos (1995)
Tunisia 1980 4.8 8.0 Psacharopoulos (1994)
United Kingdom 1987 11.8 6.8 Psacharopoulos (1994)
United States 1991-95 10.0 Rouse (1999)
Uruguay 1989 9.0 9.7 Psacharopoulos (1994)
Venezuela 1992 9.4 Psacharopoulos and Mattson (1998)
Vietnam 1992 7.9 4.8 Moock, Patrinos and Venkataraman (1998)
Yugoslavia 1986 4.8 Bevc (1993)

21
 Table A3. Returns to Education by Level of Education and Gender
Educational
Country Year Level Men Women Source
Argentina 1985 Overall 9.1 10.3 Psacharopoulos (1994)
Argentina 1989 Overall 10.7 11.2 Psacharopoulos (1994)
Austria 1981 Overall 10.3 13.5 Psacharopoulos (1994)
Bolivia 1989 Overall 7.3. 7.7 Psacharopoulos (1994)
Botswana 1975 Overall 16.4 18.2 Psacharopoulos (1994)
Brazil 1980 Overall 14.7 15.6 Psacharopoulos (1994)
Brazil 1989 Overall 15.4 14.2 Psacharopoulos (1994)
Canada 1989 Overall 8.9 Patrinos (1995)
Czech Republic 1984 Overall 2.4 4.2 Munich, Terrell and Svejnar (1999)
Czech Republic 1988 Overall 4.0 5.7 Nesterova and Sabirianova (1998)
Czech Republic 1989 Overall 2.7 3.8 Munich, Terrell and Svejnar (1999)
Czech Republic 1992 Overall 5.3 6.7 Nesterova and Sabirianova (1998)
Czech Republic 1993 Overall 5.2 5.8 Munich, Terrell and Svejnar (1999)
Czech Republic 1996 Overall 5.8 7.0 Munich, Terrell and Svejnar (1999)
Chile 1987 Overall 13.7 12.6 Psacharopoulos (1994)
Chile 1989 Overall 12.1 13.2 Psacharopoulos (1994)
China 1985 Overall 4.5 5.6 Psacharopoulos (1994)
Colombia 1973 Overall 18.1 20.8 Psacharopoulos (1994)
Colombia 1973 Overall 10.3 20.1 Psacharopoulos (1994)
Colombia 1988 Overall 11.1 9.7 Psacharopoulos (1994)
Colomnbia 1989 Overall 14.5 12.9 Psacharopoulos (1994)
Costa Rica 1974 Overall 14.7 14.7 Psacharopoulos (1994)
Costa Rica 1989 Overall 10.1 13.1 Psacharopoulos (1994)
Costa Rica 1989 Overall 10.5 13.5 Psacharopoulos (1994)
Cote dlvoire 1987 Overall 13.6 12.1 Schultz (1994)
Cyprus 1984 Overall 8.9 12.7 Psacharopoulos (1994)
Denmark 1990 Overall 5.1 3.4 Christensen and Westergard-Nielsen (1999)
Dominican Rep. 1989 Overall 7.8 12.0 Psacharopoulos (1994)
Ecuador 1987 Overall 11.4 10.7 Psacharopoulos (1994)
Ecuador 1987 Overall 9.8 11.5 Psacharopoulos (1994)
El Salvador 1990 Overall 9.6 9.8 Psacharopoulos (1994)
Finland 1980 Overall 9.3 - Asplund (1999)
Finland 1987 Overall 7.4 6.4 Asplund (1999)
Finland 1989 Overall 8.4 7.8 Asplund (1999)
Finland 1991 Overall 8.8 8.7 Asplund (1999)
Finland 1993 Overall 7.8 8.3 Asplund (1999)
Germany 1974 Overall 13.1 11.2 Psacharopoulos (1994)
Germany 1977 Overall 13.6 11.7 Psacharopoulos (1994)
Ghana 1989 Overall 4.4 4.2 Schultz (1994)
Ghana 1992 Overall 9.3 10.6 World Bank (1996a)
Greece 1977 Overall 4.7 4.5 Psacharopoulos (1994)
Greece 1993 Overall 6.9 9.0 Magoula and Psacharopoulos (1999)
Guatemala 1989 Overall 14.2 16.3 Psacharopoulos (1994)
Honduras 1989 Overall 17.2 19.8 Psacharopoulos (1994)
India 1978 Overall 5.3 3.6 Psacharopoulos (1994)
Italy 1978 Overall 2.9 - Brunello, Corni and Lucifora (1999)

22
Italy 1983 Overall 6.0 3.5 Brunello, Coni and Lucifora (1999)
Italy 1985 Overall 3.5 3.9 Brunello, Comi and Lucifora (1999)
Italy 1987 Overall 0.0 3.0 Brunello, Comi and Lucifora (1999)
Ivory Coast 1984 Overall 11.1 22.6 Psacharopoulos (1994)
Jamaica 1989 Overall 12.3 21.5 Psacharopoulos (1994)
Jamaica 1989 Overall 28.0 31.7 Psacharopoulos (1994)
Lesotho 1993 Overall 10.6 16.5 Mokitimi and Nieuwoudt (1995)
Malaysia 1979 Overall 5.3 8.2 Psacharopoulos (1994)
Mexico 1984 Overall 13.2 14.7 Psacharopoulos (1994)
Mexico 1984 Overall 14.1 15.0 Psacharopoulos (1994)
Nicaragua 1978 Overall 8.5 11.5 Psacharopoulos (1994)
Norway 1980 Overall 3.2 4.9 Barth and Roed (1999)
Norway 1983 Overall 4.7 5.5 Barth and Roed (1999)
Norway 1987 Overall 4.3 6.2 Barth and Roed (1999)
Norway 1989 Overall 4.1 3.9 Barth and Roed (1999)
Norway 1991 Overall 4.2 5.3 Barth and Roed (1999)
Panama 1989 Overall 9.7 11.9 Psacharopoulos (1994)
Panama 1989 Overall 12.6 17.1 Psacharopoulos (1994)
Paraguay 1990 Overall 10.3 12.1 Psacharopoulos (1994)
Peru 1985 Overall 11.5 12.4 Psacharopoulos (1994)
Peru 1990 Overall 8.5 6.5 Psacharopoulos (1994)
Philippines 1988 Overall 12.4 12.4 Psacharopoulos (1994)
Portugal 1977 Overall 7.5 8.4 Psacharopoulos (1994)
Portugal 1985 Overall 9.4 10.4 Psacharopoulos (1994)
Russia 1991 Overall 3.1 5.4 Munich, Terrell and Svejnar (1999)
Russia 1994 Overall 6.7 9.6 Munich, Terrell and Svejnar (1999)
Singapore 1998 Overall 11.1 15.2 Sakellariou (2001)
Slovakia 1984 Overall 2.8 4.4 Munich, Terrell and Svejnar (1999)
Slovakia 1993 Overall 4.9 5.4 Munich, Terrell and Svejnar (1999)
South Africa 1990 Overall 2.3 0.8 Mokitimi and Nieuwoudt (1995)
South Korea 1976 Overall 10.3 1.7 Psacharopoulos (1994)
South Korea 1980 Overall 17.2 5.0 Psacharopoulos (1994)
Sri Lanka 1981 Overall 6.9 7.9 Psacharopoulos (1994)
Sweden 1968 Overall 8.9 8.7 Arai and Kjellstrom (1999)
Sweden 1974 Overall 5.3 5.5 Arai and Kjellstrom (1999)
Sweden 1980 Overall 4.3 4.3 Arai and Kjellstrom (1999)
Sweden 1981 Overall 5.1 4.1 Arai and Kjellstrom (1999)
Sweden 1991 Overall 5.0 4.0 Arai and Kjellstrom (1999)
Switzerland 1982 Overall 5.5 9.1 Weber and Wolter (1999)
Switzerland 1991 Overall 8.3 7.5 Weber and Wolter (1999)
Switzerland 1992 Overall 8.2 7.8 Weber and Wolter (1999)
Switzerland 1993 Overall 7.8 7.9 Weber and Wolter (1999)
Switzerland 1995 Overall 9.1 9.0 Weber and Wolter (1999)
Switzerland 1997 Overall - 6.1 Weber and Wolter (1999)
Thailand 1972 Overall 9.1 13.0 Psacharopoulos (1994)
Uruguay 1989 Overall 9.0 10.6 Psacharopoulos (1994)
Venezuela 1976 Overall 9.9 13.5 Psacharopoulos (1994)
Venezuela 1987 Overall 10.0 13.1 Psacharopoulos (1994)
Venezuela 1989 Overall 9.1 11.1 Psacharopoulos (1994)
Venezuela 1989 Overall 8.4 8.0 Psacharopoulos (1994)

23
Vietnam 1992 Overall 3.4 6.8 Moock, Patrinos and Venkataraman (1998)
Yugoslavia 1976 Overall 5.8 6.6 Psacharopoulos (1994)
Yugoslavia 1986 Overall 4.9 4.8 Psacharopoulos (1994)
Mean 8.7 9.8
Puerto Rico 1959 Primary 29.5 18.4 Psacharopoulos (1994)
Taiwan 1982 Primary 8.4 16.1 Psacharopoulos (1994)
Indonesia 1982 Primary 19.0 17.0 Psacharopoulos (1994)
Great Britain 1841 Literacy 24.5 3.5 Psacharopoulos (1994)
Great Britain 1871 Literacy 19.0 9.0 Psacharopoulos (1994)
Mean 20.1 12.8
Canada 1980 Secondary 2.0 6.0 Psacharopoulos (1994)
Canada 1985 Secondary 10.6 18.6 Psacharopoulos (1994)
France 1969 Secondary 13.9 15.4 Psacharopoulos (1994)
France 1976 Secondary 14.8 16.2 Psacharopoulos (1994)
Great Britain 1971 Secondary 10.0 8.0 Psacharopoulos (1994)
Indonesia 1982 Secondary 23.0 11.0 Psacharopoulos (1994)
Indonesia 1986 Secondary 11.0 16.0 Psacharopoulos (1994)
Puerto Rico 1959 Secondary 27.3 40.8 Psacharopoulos (1994)
South Korea 1971 Secondary 13.7 16.9 Psacharopoulos (1994)
Sri Lanka 1981 Secondary 12.6 35.5 Psacharopoulos (1994)
Suriname 1993 Secondary 10.7 -0.8 Horowitz and Schenzler (1999)
Mean 13.9 18.4
Australia 1976 University 21.1 21.2 Psacharopoulos (1994)
Canada 1980 University 5i5 10.5 Psacharopoulos (1994)
Canada 1985 University 8.3 18.8 Psacharopoulos (1994)
Cyprus 1994 Higher 5.2 7.2 Menon (1995)
Denmark 1990 University 3.5 5.2 Cohn and Addison (1998)
Finland 1987 University 6.6 7.7 Cohn and Addison (1998)
France 1969 University 22.5 13.8 Psacharopoulos (1994)
France 1976 University 20.0 12.7 Psacharopoulos (1994)
Great Britain 1971 University 8.0 12.0 Psacharopoulos (1994)
Indonesia 1982 University 10.0 9.0 Psacharopoulos (1994)
Indonesia 1986 University 9.0 10.0 Psacharopoulos (1994)
Japan 1976 University 6.9 6.9 Psacharopoulos (1994)
Japan 1980 University 5.7 5.8 Psacharopoulos (1994)
Norway 1991 University 4.0 4.2 Cohn and Addison (1998)
Puerto Rico 1959 University 21.9 9.0 Psacharopoulos (1994)
South Korea 1971 University 15.7 22.9 Psacharopoulos (1994)
Sweden 1991 University 4.4 5.0 Cohn and Addison (1998)
Mean 11.0 10.8

24
 Table A4. Comparable over Time Returns to Investment in Education in Selected Countries
Country Year Rate of Return (%) Source
Australia 1980 7.9 Miller, Mulvey and Martin (1995)
Australia 1981 8.4 Patrinos (1995)
Australia 1985 10.9 Rummery, Vella and Verbeek (1999)
Australia 1987 5.4 Patrinos (1995)
Australia 1989 8.0 Cohn and Addison (1998)
Austria 1981 11.6 Psacharopoulos (1994)
Austria 1983 7.9* Fersterer and Winter-Ebmer (1999)
Austria 1985 7.6* Fersterer and Winter-Ebmer (1999)
Austria 1987 7.4* Fersterer and Winter-Ebmer (1999)
Austria 1989 7.6* Fersterer and Winter-Ebmer (1999)
Austria 1991 7.4* Fersterer and Winter-Ebmer (1999)
Austria 1993 7.2* Fersterer and Winter-Ebmer (1999)
Bolivia 1981 12.2 World Bank (1996b)
Bolivia 1988 9.5 World Bank (1996b)
Bolivia 1989 7.1 World Bank (1996b)
Bolivia 1990 10.1 Psacharopoulos and Mattson (1998)
Bolivia 1991 8.9 World Bank (1996b)
Bolivia 1992 10.0 World Bank (1996b)
Bolivia 1993 10.7 Patrinos (1995)
Brazil 1970 16.5 Patrinos (1995)
Brazil 1980 14.5 Patrinos (1995)
Brazil 1989 14.7 Patrinos (1995)
Canada 1981 8.5 Patrinos (1995)
Canada 1986 8.8 Patrinos (1995)
Canada 1989 8.9 Patrinos (1995)
Chile 1974 8.3 Patrinos (1995)
Chile 1980 9.6 Patrinos (1995)
Chile 1989 8.2 Patrinos (1995)
China 1988 3.6 Liu (1998)
China 1991 4.8 Wei, Tsang, Wu and Chen (1999)
China 1993 12.2 Hossain (1997)
Colombia 1965 17.3 Patrinos (1995)
Colombia 1974 12.8 Patrinos (1995)
Colombia 1989 8.2 Patrinos (1995)
Costa Rica 1980 10.5 Funkhouser (1996)
Costa Rica 1983 8.1 Funkhouser (1996)
Costa Rica 1985 8.1 Funkhouser (1996)
Costa Rica 1988 9.1 Funkhouser (1996)
Costa Rica 1991 8.5 Funkhouser (1996)
Cyprus 1984 11.0 Psacharopoulos (1994)
Cyprus 1994 5.2 Menon (1995)
Czech Republic 1995 8.1 Filer, Jurajda, Planovsky (1999)
Czech Republic 1996 8.5 Filer, Jurajda, Planovsky (1999)
Czech Republic 1997 9.0 Filer, Jurajda, Planovsky (1999)
Denmark 1976-1984 2.6 Christensen and Westergard-Nielsen (1999)
Denmark 1990 4.5 Christensen and Westergard-Nielsen (1999)
El Salvador 1985 7.9 Funkhouser (1996)

25
El Salvador 1988 7.8 Funkhouser (1996)
El Salvador 1990 7.6 Funkhouser (1996)
El Salvador 1992 7.6 Funkhouser (1996)
Estonia* 1989 1.5 Kroncke (1999)
Estonia* 1994 5.4 Kroncke (1999)
Finland 1980 9.1 Asplund (1999)
Finland 1987 7.0 Asplund (1999)
Finland 1989 8.2 Asplund (1999)
Finland 1991 8.8 Asplund (1999)
Finland 1993 8.2 Asplund (1999)
Germany 1986 5.5 Ichino and Winter-Ebmer (1999)
Germany 1988 7.7 Cohn and Addison (1998)
Germany (East) 1989 4.4 Munich, Terrell and Svejnar (1999)
Germany (East) 1991 4.1 Munich, Terrell and Svejnar (1999)
Germany (West) 1977 12.6 Patrinos (1995)
Germany (West) 1987 4.9 Patrinos (1995)
Ghana 1989 8.5 Glewwe (1996)
Ghana 1995 7.1 Jones (2001)
Greece 1964 8.6 Patrinos (1995)
Greece 1977 5.8 Patrinos (1995)
Greece 1985 7.9 Cohn and Addison (1998)
Greece 1987 2.7 Patrinos (1995)
Greece 1993 7.6 Magoula and Psacharopoulos (1997)
Guatemala 1977 12.7 Funkhouser (1996)
Guatemala 1986 9.8 Funkhouser (1996)
Guatemala 1989 14.9 Psacharopoulos (1994)
Honduras 1986 12.5 Bedi (1997)
Honduras 1989 11.5 Funkhouser (1996)
Honduras 1990 10.4 Funkhouser (1996)
Honduras 1991 9.3 Funkhouser (1996)
Indonesia 1981 17.0 Psacharopoulos (1994)
Indonesia 1995 7.0 Duflo (2000)
Italy 1977 4.5 Brunello, Comi and Lucifora (1999)
Italy 1983 5.5 Brunello, Comi and Lucifora (1999)
Italy 1985 4.5 Brunello, Comi and Lucifora (1999)
Italy 1986 4.6 Brunello, Comi and Lucifora (1999)
Italy 1987 2.7 Brunello, Comi and Lucifora (1999)
Japan 1975 6.5 Psacharopoulos (1994)
Japan 1978 4.4 Cohn and Addison (1998)
Japan 1988 13.2 Cohn and Addison (1998)
Kenya 1970 16.4 Psacharopoulos (1994)
Kenya 1986 16.0 Dabalen (1998)
Korea 1974 12.0 Ryoo, Nam and Camoy (1993)
Korea 1979 14.1 Ryoo, Nan and Carnoy (1993)
Korea 1986 13.5 Ryoo, Nam and Camoy (1993)
Mexico 1984 6.5 Patrinos (1995)
Mexico 1989 7.5 Patrinos (1995)
Mexico 1991 16.1 Psacharopoulos et. al. (1996)
Mexico 1992 7.6 Psacharopoulos et. al. (1996)
Netherlands 1962 11.0 Hartog, Odink, Smits (1999)

26
Netherlands 1965 12.2 Hartog, Odink, Smits (1999)
Netherlands 1972 11.3 Hartog, Odink, Smits (1999)
Netherlands 1979 10.9 Hartog, Odink, Smits (1999)
Netherlands 1982 7.0 Cohn and Addison (1998)
Netherlands 1985 7.2 Hartog, Odink, Smits (1999)
Netherlands 1986 5.2 Cohn and Addison (1998)
Netherlands 1988 5.7 Cohn and Addison (1998)
Netherlands 1989 7.3 Hartog, Odink, Smits (1999)
Netherlands 1994 6.4 Hartog, Odink, Smits (1999)
Nicaragua 1985 6.5 Funkhouser (1996)
Nicaragua 1993 7.9 Funkhouser (1996)
Nicaragua 1996 12.1 Belli and Ayadi (1998)
Norway 1980 5.5 Barth and Roed (1999)
Norway 1983 6.1 Barth and Roed (1999)
Norway 1987 5.4 Barth and Roed (1999)
Norway 1989 4.9 Barth and Roed (1999)
Norway 1991 5.4 Barth and Roed (1999)
Norway 1995 5.5 Barth and Roed (1999)
Pakistan 1986 4.6 Psacharopoulos (1994)
Pakistan 1991 15.4 Katsis, Mattson and Psacharopoulos (1999)
Panama 1983 12.1 Patrinos (1995)
Panama 1989 13.7 Patrinos (1995)
Panama 1990 13.7 Psacharopoulos (1994)
Paraguay 1983 11.6 Patrinos, Velez and Psacharopoulos (1994)
Paraguay 1990 11.5 Patrinos, Velez and Psacharopoulos (1994)
Peru 1985 11.5 Patrinos (1995)
Peru 1990 8.1 Psacharopoulos (1994)
Peru 1991 5.7 Patrinos (1995)
Philippines 1982 8.0 Patrinos (1995)
Philippines 1988 8.0 Patrinos (1995)
Philippines 1994 7.3 Maluccio (1998)
Philippines 1998* 12.6 Schady (2000)
Poland 1986 2.9 Lorenz and Wagner (1990)
Poland 1987 5.0 Rutkowski (1997)
Poland 1992 7.0 Rutkowski (1997)
Poland 1995-1996 7.0 Nesterova and Sabirianova (1998)
Portugal 1977 9.1 Patrinos (1995)
Portugal 1985 10.0 Patrinos (1995)
Portugal 1991 8.6 Cohn and Addison (1998)
Russian Federation 1995 7.5 Nesterova and Sabirianova (1998)
Russian Federation 1996 7.2 Nesterova and Sabirianova (1998)
Singapore 1974 13.4 Psacharopoulos (1994)
Singapore 1998 13.1 Sakellariou (2001)
South Africa 1994 4.1 Dabalen (1998)
South Korea 1974 12.0 Ryoo, Nam and Carnoy (1993)
South Korea 1976 6.5 Patrinos (1995)
South Korea 1979 14.1 Ryoo, Nam and Carnoy (1993)
South Korea 1980 11.1 Patrinos (1995)
South Korea 1986 13.5 Ryoo, Nam and Carnoy (1993)
Spain 1985 7.7 Cohn and Addison (1998)

27
Spain 1990 9.0 Alba-Ramirez and Segundo (1995)
Spain 1991 7.2 Mora (1999)
Sweden 1968 7.8 Arai and Kjellstrom (1999)
Sweden 1974 4.3 Arai and Kjellstrom (1999)
Sweden 1981 3.5 Arai and Kjellstrom (1999)
Sweden 1984 3.9 Arai and Kjellstrom (1999)
Sweden 1990 4.5 Isacsson (1999)
Sweden 1991 5.0 Cohn and Addison (1998)
Switzerland 1987 7.9 Psacharopoulos (1994)
Switzerland 1990 7.5 Weber and Wolter (1999)
Thailand 1971 10.4 Psacharopoulos (1994)
Thailand 1986 12.4 Patrinos (1995)
Thailand 1989 11.5 Patrinos (1995)
United Kingdom 1975 8.0 Patrinos (1995)
United Kingdom 1982 15.3 Harmon and Walker (1995)
United Kingdom 1984 13.3 Harmon and Walker (1999)
United Kingdom 1987 6.8 Patrinos (1995)
United States 1976 7.5 Kling (1999)
United States 1978 7.9 Patrinos (1995)
United States 1987 9.8 Psacharopoulos (1994)
United States 1991-95 10.0 Psacharopoulos (1999)
Venezuela 1975 13.7 Patrinos (1995)
Venezuela 1984 11.2 Patrinos (1995)
Venezuela 1989 9.6 Fiszbein and Psacharopoulos (1993)
Venezuela 1992 9.4 Psacharopoulos and Mattson (1998)
Vietnam 1992 4.8 Moock, Patrinos and Venkataraman (1998)
Vietnam (South) 1964 16.8 Psacharopoulos (1994)
Yugoslavia 1976 6.8 Bevc (1993)
Yugoslavia 1986. 4.8 Bevc (1993)
* Data is for male population only.

28
 Policy Research Working Paper Series

Contact
Title Author Date for paper

WPS2854 Rich andPowerful? Subjective Michael Lokshin June 2002 C. Cunanan

Power and Welfare in Russia Martin Ravallion 32301

WPS2855 Financial Crises, Financial Luc Laeven June 2002 R. Vo

Dependence, and Industry Growth Daniela Klingebiel 33722
Randy Kroszner

WPS2856 Banking Policy and Macroeconomic Gerard Caprio, Jr. June 2002 A. Yaptenco
Stability: An Exploration Patrick Honohan 31823

WPS2857 Markups, Returns to Scale, and Hiau Looi Kee June 2002 M. Kasilag
Productivity: A Case Study of 39081
Singapore's Manufacturing Sector

WPS2858 The State of Corporate Governance: Olivier Fremond June 2002 G. Gorospe
Experience from Country Mierta Capaul 32623
Assessments

WPS2859 Ethnic and Gender Wage Mohamed Ihsan Ajwad June 2002 Z. Jetha
Disparities in Sri Lanka Pradeep Kurukulasuriya 84321

WPS2860 Privatization in Competitive Sectors: Sunita Kikeri June 2002 R. Bartolome

The Record to Date John Nellis 35703

WPS2861 Trade-Related Technology Diffusion Maurice Schiff June 2002 M. Kasilag

and the Dynamics of North-South Yanling Wang 39081
and South-South Integration Marcelo Olarreaga

WPS2862 Tenure, Diversity, and Commitment: Somik V. Lall June 2002 Y. D'Souza
Community Participation for Urban Uwe Deichmann 31449
Service Provision Mattias K. A. Lundberg
Nazmul Chaudhury

WPS2863 Getting Connected: Competition Frew Amare Gebreab June 2002 P. Sintim-Aboagye
and Diffusion in African Mobile 38526
Telecommunications Markets

WPS2864 Telecommunications Reform in Mary M. Shirley June 2002 P. Sintim-Aboagye

Uganda F. F. Tusubira 38526
Frew Amare Gebreab
Luke Haggarty

WPS2865 Bankruptcy Around the World: Stijn Claessens July 2002 A. Yaptenco
Explanations of its Relative Use Leora F. Klapper 31823

WPS2866 Transforming the Old into a David Ellerman July 2002 N. Jameson
Foundation for the New: Lessons Vladimir Kreacic 30677
of the Moldova ARIA Project

WPS2867 Cotton Sector Strategies in West Ousmane Badiane July 2002 A. Lodi
and Central Africa Dhaneshwar Ghura 34478
Louis Goreux
Paul Masson

WPS2868 Universal(ly Bad) Service: George R. G. Clarke July 2002 P. Sintim-Aboagye

Providing Infrastructure Services Scott J. Wallsten 38526
to Rural and Poor Urban Consumers
 Policy Research Working Paper Series

Contact
Title Author Date for paper

WPS2869 Stabilizing Intergovernmental Christian Y. Gonzalez July 2002 B. Mekuria

Transfers in Latin America: David Rosenblatt 82756
A Complement to National/ Steven B. Webb
Subnational Fiscal Rules?

WPS2870 Electronic Security: Risk Mitigation Thomas Glaessner July 2002 E. Mekhova
In Financial Transactions-Public Tom Kellermann 85984
Policy Issues Valerie McNevin

WPS2871 Pricing of Deposit Insurance Luc Laeven July 2002 R. Vo

33722

WPS2872 Regional Cooperation, and the Role Maurice Schiff July 2002 P. Flewitt
of International Organizations and L. Alan Winters 32724
Regional Integration

WPS2873 A Little Engine that Could ... Liesbet Steer August 2002 H. Sutrisna
Domestic Private Companies and Markus Taussig 88032
Vietnam's Pressing Need for Wage
Employment

WPS2874 The Risks and Macroeconomic David A. Robalino August 2002 C. Fall
Impact of HIV/AIDS in the Middle Carol Jenkins 30632
East and North Africa: Why Karim El Maroufi
Waiting to Intervene Can Be Costly

WPS2875 Does Liberte=Egalite? A Survey Mark Gradstein August 2002 P. Sader

of the Empirical Links between Branko Milanovic 33902
Democracy and Inequality with
Some Evidence on the Transition
Economies

WPS2876 Can We Discern the Effect of Branko Milanovic August 2002 P. Sader
Globalization on Income Distribution? 33902
Evidence from Household Budget
Surveys

WPS2877 Patterns of Industrial Development Raymond Fisman August 2002 K. Labrie

Revisited: The Role of Finance Inessa Love 31001

WPS2878 On the Governance of Public Gregorio Impavido August 2002 P. Braxton

Pension Fund Management 32720

WPS2879 Externalities in Rural Development: Martin Ravallion August 2002 C. Cunanan

Evidence for China 32301

WPS2880 The Hidden Costs of Ethnic Soumya Alva August 2002 T. Bebli
Conflict: Decomposing Trends in Edmundo Murrugarra 39690
Educational Outcomes of Young Pierella Paci
Kosovars