OECD-Study: Economic effects of education still largely underestimated

A new study by the OECD titled "The High Cost of Low Educational Performance" relates cognitive skills to economic growth. Results show the enormous long-term economic impact of improvements in education.

According to the study, relatively small improvements to labour force skills can have a large impact on the future well-being of a nation. Governments, however, often underestimate the value and importance of improvements in education as today’s investments only pay off in the future.

"The generation born today could realise about 260 trillion dollars more in economic output if they were able to succeed – what the best performing education systems show is possible to achieve," said Andreas Schleicher, special advisor on education policy at the OECD (Organisation of Economic Co-operation and Development).

The study shows that the gains from an improvement in cognitive skills would by far exceed the value of regulatory measures like short-term business cycle management. The OECD therefore points out that "this is not to say that efforts should not be directed at issues of economic recession, but it is to say that the long-run issues should not be neglected".