The Economic Benefits of Australian University Degrees: Bachelor and Research Higher Degrees.

The investment by government and individuals in three-year and four-year bachelor degrees leads to significant economic benefits for both parties. Science and Technology (S&T) bachelor degrees yield higher private rates of return, 20.1 per cent (three-year) and 15.0 per cent (four-year), than for Humanities and Social Science (H&SS) degrees, 13.7 per cent and 10.3 per cent respectively. The social rate of return for all degrees is in the range 8.7 per cent to 12.1 per cent. A balance sheet analysis reveals that the return to government is 1.3 to 1.7 times for S&T degrees and 1.7 to 2.1 times for H&SS degrees. Net present value (NPV) lifetime earning increases to the graduate, relative to private degree costs, range from 1.4 to 3.7 times. For two-year Masters-by-research degrees and four-year Doctor of Philosophy degrees in S&T and H&SS disciplines the NPV lifetime earnings, relative to private degree costs, range from 1.2 to 2.9 times for research degrees. Private rates of return are in the range 12.0 per cent to 12.7 per cent for S&T and from 8.8 per cent to 10.4 per cent for H&SS research degrees. Social rates of return are in the range 5 per cent to 7 per cent if the spillover effect of university R&D on growth in gross domestic product is ignored. R&D spillover increases the social rate of return to a range of 9 per cent to 11 per cent. [ABSTRACT FROM AUTHOR]

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