The returns to third level education

Estimates of the private returns to education largely ignore the interaction of increasing gross earnings and the tax/benefit system, as well as the impact extra education may have on labour market outcomes and other non-labour incomes. Estimates of the public and non-pecuniary returns to education are also rare. In this context, this chapter presents estimates of the net private, public and non-pecuniary returns to third level education in Ireland for the year 2014. It finds significant positive returns to both the individual and the state from investing in third level education. It also finds tentative evidence that individuals with a third level education report higher measures of happiness and health compared to those with lower levels of education, controlling for income and other factors.