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In a period of student loan scandals and U.S. financial market instability impacting on the cost and availability of student loans, this paper looks at alternative models of higher education funding. In this context, it also considers the level of financial support that the government should provide to higher education.

This article examines the long-run effect of higher education, measured in average years of tertiary schooling, on the level and growth rate of national per capita income. It uses an improved dataset on educational attainments which not only reduces measurement error but also overcomes data comparability issues and allows us to estimate the long-run effect of human capital through higher education on economic development. Using unique long panel data for 36 advanced and emerging economies spanning over the period 1870-2010, we find that higher education has a positive and significant effect on the level and the growth rate of national per capita income. Specifically, our empirical results indicate that a 1% increase in educational attainment at higher education level would raise the growth rate of per capita income by about 0.01% to 0.02% over a five-year period. That is, at the sample mean, an increase in average tertiary education by one year would raise output growth by about 6% to 11% in five years. We find that the returns to female education are lower than the returns to male education at tertiary schooling levels. Our results are robust to alternative specifications.

The article presents a comparative analysis of educational policy and provision in Sweden and Australia, with particular emphasis on the relative investment in continuing and further education in both countries. The authors investigate the extent to which further education opportunities provide a "second chance" at learning for adults and contribute to social and economic capital. (Contains 3 tables and 2 figures.)

The present study examined how access to home and school IT resources impacted student mathematics achievement. Data comprised 144,395 secondary school students from 7,308 schools in 22 developed economies who participated in the Programme for International Student Assessment (PISA) 2012. Results of hierarchical linear modelling showed that after controlling for student and school covariates, student achievement benefited from their access to home IT resources (main effect), and from the access to both home IT resources and highly educated mothers (interactive effect). Furthermore, IT resource shortages in school had a detrimental impact on student achievement (main effect), and the shortage accentuated the negative effects of school shortage in qualified teachers on achievement (interactive effect). Lastly, the results showed that students with less home academic and cultural resources were more impacted by IT resource access when compared to peers from advantaged families.

Ample evidence indicates that a person's human capital is important for success on the labor market in terms of both wages and employment prospects. However, unlike the efforts to identify the impact of school attainment on labor-market outcomes, the literature on returns to cognitive skills has not yet provided convincing evidence that the estimated returns can be causally interpreted. Using the PIAAC Survey of Adult Skills, this paper explores several approaches that aim to address potential threats to causal identification of returns to skills, in terms of both higher wages and better employment chances. We address measurement error by exploiting the fact that PIAAC measures skills in several domains. Furthermore, we estimate instrumental-variable models that use skill variation stemming from school attainment and parental education to circumvent reverse causation. Results show a strikingly similar pattern across the diverse set of countries in our sample. In fact, the instrumental-variable estimates are consistently larger than those found in standard least-squares estimations. The same is true in two "natural experiments," one of which exploits variation in skills from changes in compulsory-schooling laws across U.S. states. The other one identifies technologically induced variation in broadband Internet availability that gives rise to variation in ICT skills across German municipalities. Together, the results suggest that least-squares estimates may provide a lower bound of the true returns to skills in the labor market.

Background: Educational qualifications and literacy skills are highly related. This is not surprising as it is one aim of educational systems to equip individuals with competencies necessary to take part in society. Because of this relationship educational qualifications are often used as a proxy for "human capital". However, from a theoretical perspective, there are many reasons why this relationship is not perfect, and to some degree this is due to third variables. Thus, we want to explore the net relationship between educational attainment (harmonized according to the International Standard Classification of Education, ISCED) and literacy skills, and how much skills vary within education levels across countries. Methods: We use data from 21 countries from the Programme for the International Assessment of Adult Competencies 2012. This paper compares the literacy skills of adults who achieved different levels of educational attainment across countries. Given the high degree of educational differentiation in most countries, we do this using a more differentiated educational attainment variable than what is commonly used. In our analyses we firstly adjust for factors that are likely to affect access to education and the acquisition of educational qualifications and literacy skills, such as parental education and language and migration background. In a second step, we also take into account factors affecting skill development after initial formal education, such as occupation and skill use at home. Results: We firstly find a high degree of heterogeneity of skills across countries for equivalent education categories. Secondly, we find skill similarities for equivalent education categories classified at different broad education levels, sometimes even breaking the hierarchical order of 'higher education entails higher competencies'. Conclusion: We conclude that ISCED levels cannot be taken as a cross-nationally comparable proxy for human capital in terms of literacy skills, and that education has to be harmonized in a substantively more meaningful way in future adult literacy surveys.

Following Ben-Porath [1967. "The Production of Human Capital and the Life-Cycle of Earnings." "Journal of Political Economy" 75 (3): 352-365], the influence of life expectancy on education and on human capital has attracted much attention among growth theorists. Whereas existing growth models rely on an education decision made either by the child or by his parent, we revisit the Ben-Porath effect by modelling education as the outcome of bargaining between the parent and the child. We develop a three-period overlapping generations (OLG) model, where human capital increases life expectancy and shows that as a result of the unequal remaining lifetimes faced by parents and children, the form of the Ben-Porath effect depends on how bargaining power is distributed within the family, which in turn affects long-run economic dynamics. Using data on 16 OECD countries (1940-1980), we show that introducing family bargaining helps to rationalize the observed education patterns across countries.

This paper empirically examines the impact of academic research on high-tech manufacturing growth of 28 Organisation for Economic Co-operation and Development (OECD) and emerging countries over the 1991-2005 period. A standard research and development (R&D) expenditure based measure is found to be too general to capture the input in high-tech research. To overcome this problem, a novel proxy for high-tech research investment--the supercomputer capacity--is proposed. Empirical evidence strongly supports this choice of variable. It is also found that academic R&D exerts a larger growth effect on high-tech output than its industry and government counterparts, but only the impact differential between academic and government R&D is statistically significant.

This paper investigates achievement gaps between low and high socioeconomic students in 19 high-income countries. On average, math scores of students with indicators of high socioeconomic status (SES) are over one standard deviation above those with low SES indicators. The paper estimates the extent to which these achievement gaps can be attributed to differences in classroom- and school-level resources available to students from different SES backgrounds. In some countries, achievement gaps can be largely explained by differences in the characteristics of schools attended. However, in many other countries, the gap appears more closely related to differences in the characteristics of the students. The results point to the importance of institutional difference among countries in explaining international differences in the quality of education received by different groups within a nation. (Contains 4 tables, 2 figures and 13 notes.)

While higher education is regarded a high priority for economic development in many countries, public budgets often fall short to support desired levels of expansion in higher education. This leads to cost-sharing: students and their families are required to contribute more to the costs of higher education. This paper explores worldwide trends to cope with this issue based on the following questions: Is it fair to ask for larger contributions from students? What are the global patterns and forms of higher private shares in the costs of higher education? And what is the impact of cost-sharing on higher education access and equity? (Contains 4 tables and 2 footnotes.)

This article examines the migration flows of university‐qualified labour (UQL) between cities and hinterland regions in the sparsely populated north of both Australia and Sweden. These peripheries have become increasingly urbanised in recent decades and have received substantial investment in urban higher education hubs that are expected to generate skills for their regions. Whether these skills remain within the few urban centres or are redistributed internally to benefit rural and remote locations is not known. The article identifies the extent to which there have been urban–rural 'spillover' or 'sponge' effects in UQL migration flows within the north and establishes whether there has been a 'disconnect' in the regional exchange of UQL. Drawing on recent Australian census and Swedish register data, the results suggest that 'spillover' and 'sponging' of UQL have been limited, particularly in Northern Australia where cities appeared quite disconnected from their hinterlands. Spillover was more common in Northern Sweden, but cities with universities targeting regional skill needs did not necessarily generate more net‐migration gains for their hinterland. The discussion illustrates why urban–rural human capital relationships in northern peripheries may be more diverse and complex than assumed and flags what policy lessons can be drawn from comparing different northern peripheries. [ABSTRACT FROM AUTHOR]

Johansson S, Leonard R, Noonan K. Caring and the generation of social capital: two models for a positive relationship When caring is linked to social capital, it is generally assumed that the nature of the relationship is that social capital is a resource that can be used for care work. When there is inadequate funding of aged care services by the state, then social capital may be seen as a substitute for economic and human capital. Caring, therefore, is seen as a drain on capital. However, this does not have to be the case. Aged care services, if thoughtfully designed, can not only consume social capital, but also generate it. Two models of elder care, one Swedish and one Australian, have been identified which specifically address the generation of social capital. In each case, the services and facilities have been developed by third-sector organisations with a strong community development focus, often in the face of resistance from state-run or medically oriented services. [ABSTRACT FROM AUTHOR]