Taxation and Skills

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Taxation and Skills

Compare your country is a service provided by the OECD. You are invited to share this tool or to embed it into your website. OECD Terms and Conditions apply.
Governments generally recover the costs of their investment in tertiary education through higher income tax revenues on higher wages from more highly-skilled workers. The results suggest that the current tertiary education spending mix pays for itself for the government for a typical student at current wage levels and tax rates in the OECD. This with accounting for other benefits such as higher growth, higher employment and higher tax revenue in taxes other than income, so the returns are likely higher for governments. As with the Effective Tax Rates, both Marginal and Average RCRs are modelled, with different returns to skills in each case.
Pass cursor over table headings for detailed indicator definition. Click on table headings to order countries on the selected indicator.
Country
Average Returns to Costs Ratio, 2011
Marginal Returns to Costs Ratio, 2011
Australia AUS 1.69 0.76
Austria AUT 1.04 0.3
Belgium BEL 1.01 0.33
Chile CHL 0.83 0
Czech Republic CZE 1.56 0.25
Denmark DNK 0.59 0.09
Estonia EST 0.61 0.22
Finland FIN 1.02 0.23
Greece GRC 1.19 0.55
Hungary HUN 1.69 0.17
Iceland ISL 1.61 0.55
Ireland IRL 0.57 0.3
Israel ISR 1.52 0.34
Italy ITA 1.55 0.36
Luxembourg LUX 2.18 0.35
Mexico MEX 1.28 0.22
Netherlands NLD 2.2 0.86
New Zealand NZL 0.56 0.25
Norway NOR 0.6 0.18
Poland POL 0.69 0.1
Portugal PRT 2.72 0.45
Slovak Republic SVK 0.88 0.15
Slovenia SVN 1.64 0.07
Spain ESP 0.83 0.28
Sweden SWE 0.48 0.12
Switzerland CHE 0.9 0.2
Turkey TUR 0.4 0.16
United Kingdom GBR 1.54 0.43
Canada CAN 0.98 0.17