Abstract
The paper discusses the problems of measuring the rate of return to women's education, and evidence is presented for nine countries which shows that the returns to secondary and higher education are on average two percentage points lower for women than for men, but in some countries they are actually higher. Education increases the earning capacity of women, and also increases their propensity to remain in the labour market. But some allowance must be made for the value of women's non-market work, for indirect benefits of education, and for psychic income. Various methods are suggested for measuring the non-monetary benefits of education, such as the intergeneration effect of a mother's education on the future achievement of her children, or the non-pecuniary benefits of employment for women in the labour force. The effects of discrimination on women's earnings and job prospects are discussed, and it is shown that a large part of the observed differential between male and female earnings is due to the concentration of women in low-income occupations. The paper concludes that the difference between the returns to education for men and women is less than is often suggested, particularly if some attempt is made to measure nonmonetary benefits. But the returns to women's education would be increased if there were a change in traditional attitudes leading to a more equal occupational distribution and better utilisation of women in the labour force.
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Woodhall, M. The economic returns to investment in women's education. High Educ 2, 275–299 (1973). https://doi.org/10.1007/BF00138806
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DOI: https://doi.org/10.1007/BF00138806