Higher educational attainment leads to better earnings. Full-time workers with upper secondary degrees earn about 18% more than those without such qualifications, on average across OECD countries. The premium for completing a tertiary degree is much higher. Full-time tertiary-educated workers in OECD countries earn on average almost twice as much as those with below upper secondary attainment.
Earnings by educational attainment
Higher levels of education typically result in higher earnings. Individuals consider the potential for increased income alongside the costs of education and training, serving as an incentive to pursue further education and training.
Key links
Key messages
The recent improvements in women's educational attainment have led to a global rise in their workforce participation. Nonetheless, disparities in earnings persist, disproportionately favouring men regardless of educational achievements. In addition to the underrepresentation of women in the lucrative STEM and ICT fields, the gender pay gap highlights distinct patterns of job mobility between genders. Women are less likely than men to receive promotions or significant wage increases when switching employers.
Private net financial returns represent the difference between the costs and benefits of obtaining further education. Costs include direct expenses and forgone earnings, while benefits encompass post-tax employment income. Across OECD countries, individuals typically gain more from achieving tertiary education than they invest in it. On average, the private net financial return for obtaining tertiary education is USD 343,000 for men and USD 292,700 for women.
Context
Relative earnings by educational attainment
Higher levels of educational attainment bring earnings advantages. Full-time workers with upper secondary attainment earn 18% more than those with below upper secondary attainment, on average across OECD countries. The premium is much higher among tertiary graduates, who typically earn almost double the income of individuals with below upper secondary education across the OECD.
Gender pay gap by educational attainment and programme orientation
For full-time, full-year younger workers with upper secondary or post-secondary non-tertiary attainment, the gender pay gap is wider for those with vocational qualifications than general ones. On average across OECD countries, younger women with vocational education earn 80% of what their male counterparts earn, while those with general education earn 84%.
